These days there is stock except Nvidia. (NVDA) ?
It's no secret that Wall Street can't stop talking about semiconductors and ai with Jensen Huang at the helm, but is all the fuss justified?
In the words of the former NYSE trader and TheStreet Pro Contributor, Stephen 'Sarge' Guilfoyle, that's a big 'yes'.
“For Nvidia it is the flame, because we, many of us, are nothing more than moths and all kinds of ugly creatures.”
Alright, great, but let's be a little less Dickensian for a second. Guilfoyle stopped by our set at the New York Stock Exchange to explain why he believes Nvidia's high valuation is more than justified even though the stock has tripled since it last reported earnings and issued strong guidance quarterly.
Is this a 'Great Expectations' story or is Guilfoyle right?
We'll find out when Nvidia reports second-quarter earnings after the closing bell on Wednesday.
For more information on how Guilfoyle markets Nvidia, read your latest version of TheStreet Pro.
Related: Analysts Rush to Renew Nvidia Price Targets Ahead of Earnings
FULL VIDEO TRANSCRIPT BELOW:
Stephen Guilfoyle: I think everyone has to be obsessed with Nvidia. I myself am invested in the name. Not as much as me.
I took a little bit off the table just to be up front with it. But every time you take a little bit off NVIDIA because it hits your target price, it comes back and slaps you in the face again.
So although it has been a very profitable trade, I have missed opportunities every time I sold something. Therefore, traders and investors should be vigilant and probably want to participate in Nvidia to some extent.
It is the benchmark of the generative ai revolution. He is a representative of what the amazon is. (AMZN) Google's (GOOG) the one from Microsoft (MSFT) what they are all spending now in terms of capital expenditures to keep up with each other and compete.
See more videos:
- New dyslexia treatment aims to overcome the biggest obstacle in cognitive healthcare
- How This YouTuber Got a Huge Audience Playing Slots
- Yes, there are fewer chips in the bag: Shrinkflation, explained
It is the goal if you are a company like Advanced Micro Devices (amd) or wonder (MURLY) technology, is who you're chasing in terms of trying to gain market share.
Although their moat, their technology has been really defensible up to this point, we're seeing maybe a slight slowdown in the pace of sales growth, but I don't think it's anything that should scare off an investor.
It will really come down to valuation. And Nvidia's valuation is a little high? Of course, they have earned a high rating. Yes, they certainly have. And maybe. Maybe it deserves to be even higher. I guess we'll find out soon. And they also have perhaps the coolest CEO in the business. If I'm a Lisa Su fan, I don't know how much I can go on with that. But Jensen Huang is simply the Fonz.
Related: A veteran fund manager picks his favorite stocks for 2024
