Nvidia: You Have Been Pumped And Warned By The Cloud Hyperscaler Honchos

Summary:

  • Ahead of its upcoming Q2 FY2025 report, Nvidia Corporation stock is experiencing significant volatility. While a double beat is likely, the sustainability of Nvidia’s rapid growth and high margins remains uncertain.
  • Despite Nvidia’s strong business performance and leadership in the burgeoning AI chips market, I maintain a “Neutral/Hold” rating due to valuation concerns and a troublesome technical setup.
  • In this note, we shall preview Nvidia’s Q2 FY2025 report and take stock of Nvidia’s long-term risk/reward.

Nvidia Corporation building in Taipei, Taiwan.

BING-JHEN HONG

Introduction

After striking a blow-off top in mid-June, Nvidia Corporation (NASDAQ:NVDA) stock has experienced significant volatility – with NVDA tumbling by nearly 35% from ~$140 to ~$90 per share from mid-July to early August. However, with the unwind of the yen carry trade


Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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