Here's Why We're Adding to Nvidia
We'll review our Nvidia price target following quarterly results from Taiwan Semiconductor.
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* We are adding to our position in Nvidia.
* We will review our NVDA and QCOM price targets following quarterly results next week from Taiwan Semiconductor.
* Marvell’s AI and infrastructure event today should be a positive for MRVL and NVDA.
* Here’s what else is on our shopping list.
| Symbol | Transaction Type | #Shares Traded | Recent Price ($) | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
NVDA | Buy | 48 | 875 | 115 | 2.4 |
After you receive this Alert, we will buy 48 shares of Nvidia NVDA at or near $875. Following the trade, NVDA shares will account for roughly 2.4% of the portfolio.
On the heels of a mixed but not as hot as feared March Producer Price Index, we are stepping further into the portfolio’s positions for Nvidia. We are adding to Nvidia coming off the recent pullback as well as this week’s AI, cloud, and data center news that shows all three remain areas of corporate investment, keeping them growth drivers.
Despite news that Google (GOOGL) and Meta META will invest in their own AI chips, current capacity shortages as well as estimates for Nvidia to retain up to 75% of the AI accelerator market tell us it remains well positioned.
Some estimates put the AI accelerator market at around $90 billion this year, rising to about $200 billion in 2027. We also see Nvidia’s data center business well positioned as the looming AI-on-device upgrade cycle helps drive data center chip demand.
In terms of our price target, we will revisit it once we have next week’s earnings report from Taiwan Semiconductor TSM in hand. Not only will that give us the March quarter revenue breakdown between High-Performance Computing (data center and AI) vs. smartphone, but TSM’s guidance will help us get our arms around market expectations for Nvidia as well.
That comment also applies to our shares of Qualcomm QCOM, which is bumping up against our price target and received two price target increases this morning to $200 and $205 from Bernstein and Susquehanna. Both are aligned in our thinking that Qualcomm’s business and our shares will benefit from the looming AI-on-device upgrade cycle. TSM’s smartphone comments will also be ones that could lead us to scoop up more shares of Universal Display OLED.
As a reminder, Marvell MRVL will hold its Accelerated Infrastructure for the AI Era event today, which kicks off at 10 am ET. The event, which should be well attended by Wall Street folk, should be a positive catalyst not only for our MRVL shares but also for the NVDA ones as well.
Other stocks on our shopping list include the aforementioned OLED shares as well as PepsiCo PEP, Waste Management WM, and if we get the right chance Applied Materials AMAT. At lower levels, we would be open to taking another bite on McDonald’s MCD shares.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long NVDA, MRVL, GOOGL, OLED, PEP, WM, AMAT and MCD.
