NVDA is now up 240% YTD after it closed at an all-time high of $493 yesterday.
Not long after we discussed the stock last week, they forged an AI deal with Google.
CEO Jensen Huang says the deal will “supercharge energy efficiency and reduce costs.”
This suggests absolute control over the current and future AI marketplace.
And once again, positive news has added fuel to the stock’s 2023 momentum.
I’m not saying to ignore the potential for bigger profits, but if you’ll play this trend…
Here’s something to keep in mind:
Every economy has choke points; raw materials essential to one or more industries, a technology that few companies control, or even just a unique way of doing something.
NVDA holds a dominant position in one of those choke points (computer chips.)
But as discussed last week, the AI market (from where most of NVDA’s gains have come over the last twelve months) is facing big problems, and NVDA’s stock is not invincible.
Biden’s trade restrictions on chip exports to China and the Middle East pose a major problem for the company’s growth, but that’s just one piece of the puzzle.
Perhaps the more important question here is what will happen to AI developers and their language learning models and datasets as they face a tidal wave of lawsuits.
Not just from journalists and authors but from media powerhouses like the NYT & WSJ.
A 300% return in 2023 is not out of the question as we’re rounding third base and headed for home plate. Still, if you’re heavy in AI-focused names like Nvidia (NVDA)…
It helps to see the bigger picture and structure your trading positions accordingly.
P.S.: If you’d like to see how my process can help you flourish alongside my family of traders in this tricky market, click here and let’s align your needs with the proper strategy to thrive in this increasingly challenging economy.
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.