Buy The AI

Nvidia is down 35% from its highs. This is a very good bargain for anyone who thinks they missed the big move Nvidia has had and a chance to jump in. The market doesn't always give second chances and that's why I think anyone who was looking should get in.

Before the big move, I was thinking to buy options to still get in on Nvidia and get some leverage back after such a big drive upward that Nvidia had. But this pull back has me thinking to back up the truck.

But what was the reason for the big pull back? The investors don't like the fact that they postponed the launch of their new AI chip, the Blackwell B200, due to a design flaw. And how long were they looking to delay? 3 months. 3 months? In a market that usually looks ahead 6+ months can't handle a delay of 3 months?

Also, the fact that if some investors had a Japanese carry trade on the side, many could have seen this as an excuse to sell a bit of their position.

And after the 3 months, who are the companies that are planning to demand this product? Microsoft, Google, Facebook, also known as Meta. Three of some of the biggest companies that themselves have tons of products and have the potential to generate enough demand to significantly move the needle for Nvidia.

Nvidia is an AI industry leader.  They control about 90% of the AI market and their H100 chips have been crucial for AI systems worldwide. It solidified Nvidia's place as an AI leader and it was expected that the B200 would further Nvidia's lead.

However, again, we are talking about three months. Three months to roll out a product that companies are still clamoring for. For a company that is firmly an industry leader. A company that is not only cheaper in nominal price than its next biggest rival, AMD, as of this writing, but also cheaper by half according to its P/E ratio. Further, it has a AI product in the pipeline, coming soon, where as AMD doesn't seem to have that at all.

The world is moving more and more to AI and as it does so, I want to be moving more and more to NVDA.

*This is solely my personal thoughts and opinions and not to be taken as financial advice. For that, please contact your financial advisor