So, Nvidia is at the center of the AI boom (or a potential bubble, as discussed here).
The chip-maker is still up more than 219% this year, even after the recent pullback.
And after the company reported better-than-expected earnings last night…
Analysts expect that the stock could soon shoot past $500 per share. But as the saying goes, it’s better to underpromise and overdeliver than to overpromise and shit the bed.
Here’s what most people don’t yet realize:
Nvidia faces two imminent problems that could keep earnings below $450 per share. First, the Biden Administration’s trade restrictions on chip sales to China.
If they are sweeping and strict, that could significantly eat away at NVDA’s profits.
Second, the AI industry faces regulatory and legal issues, regarding intellectual property and copyrights.
Per the NYT, many people who have their content used for large language models are considering suing OpenAI (the company behind the viral AI content creator ChatGPT).
If they gain favorable siding in the courts, that will be a devastating setback for AI and, by extension, Nvidia since it supplies most of the chips used for complex AI tasks.
Sure, Nvidia still could be the company of the future, but then, I wouldn’t bet on the AI gold rush driving the company’s long-term growth. As I always tell my clients…
AI still has a LONG way to go before we can trust the tech to make potentially life-changing decisions without mistakes that require human skill to compensate for.
Until then, I can use my skills to build wealth for my family and I won’t be lazy about it.
See the simple strategy that helped me make my first $1 million in trading profits.
Author: Anthony Speciale
Anthony Speciale Jr. Born and raised into a blue collar family in the suburbs of Northern New Jersey, I have in recent years put down the wrenches I’ve been turning for the better part of my entire life and have become a professional energy trader. My mother was a nurse practitioner and my father was an auto mechanic. I had literally watched both of my parents work endless hours with their hands throughout their entire lives and after loosing my mother at a young age to cancer, I had decided I wanted a different future than the path I was currently on. At a young age I was a struggling student who didn’t excel very well academically and college wasn’t really in the cards for me, but I was always a disciplined worker. When I had put my mind to something, there was nothing that was going to stop me from reaching and exceeding my goals I had set for myself. So, as life had evolved, so did my desire for freedom. It was never much about the money for me, but it was about the success and the freedom that accompanied that success. Over a decade ago, I decided to specialize in just one sector of the market. I knew that I only needed to be proficient at just one area of the market to achieve the goal I had set forth. Trade passively while producing massively. Well, that’s exactly what I did. After several years of failed attempts, endless education, trial and error - I had finally yielded myself the success and freedom I was desiring. After making myself over $1,000,000.00 trading this very method, it was time to share my success with those who also desire the freedom I did. After a lot of work, time, effort and sacrifice - Big Energy Profits went from merely a concept into a very real reality.