| | | NVDA: I think it was priced to perfect at $130+ and now it is priced at parity given a slight premium valuation into one of the most investable theses, perhaps ever. That said, given current market condition, I have to believe that $95 level is now in play and if that doesn't hold, the $75-$83 level isn't out of the question. As you said, analysts will be using this catalyst. Talking heads were already starting to sound alarms about the AI too far, too fast narrative and this now gives them fire beneath the smoke to beat that drum further to provide maximum downside pressure to allow for new positions. Those analysts who were left out of the name because of the run, though they missed a lot of upside opportunity, will get a second opportunity to finally be in for the next leg up.
In all reality, it's the perfect type of issue to have to cause a reset and a new base. As for my new call position, it's going to be on fire and I'll probably have to exit and reposition.
But I'm very happy I stuck to the very difficult tenet of trimming positions including CRWD, NVDA, QCOM, JPM, etc. when it was all blue skies and unicorns. It just goes to show you how fast things can unwind. |
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