![]() ![]() Within that upbeat crowd, investment bank Susquehanna has chimed in on Nvidia in front of earnings. The firm outlined some concern over shrinking GPU prices tethered to gaming and crypto mining and warned the outfit’s habitual “beat and raise” practice is at risk. Nevertheless, it’s positive on Nvidia’s data center business, and Susquehanna maintained its “buy” rating and less-tempered $280 price target compared to NVDA stock’s price of $165.95. NVDA Stock Has Earnings RiskĮntering Wednesday’s session, it’s hard to get onboard with a stock which most of Wall Street is overly keen on and collectively long and wrong.Īnother strike against NVDA stock is direct competitor Advanced Micro Devices (NASDAQ: AMD).ĭespite its own huge earnings beat, AMD can be picked up for roughly its pre-report stock price. Given an intolerant environment and incredibly unforgiving earnings season, it’s the better risk-adjusted position at the moment. Technically, NVDA stock is currently testing its 62% retracement level of its Covid-19 cycle. Several percent below, a Fibonacci-based two-step pattern completes and could act as support for a bottom. ![]() Of concern, if it can’t hold support there’s a more substantial air pocket that opens Nvidia up to a challenge of the $100-$115 area. Coupled with a marginally out-of-position weekly stochastics and NVDA stock price that’s not wildly oversold, there’s simply insufficient evidence to own shares, while ignoring the increased risk of additional downside. To be fair, NVDA stock is the type of industry-leading, large-capitalization stock which could be a core holding in investors’ portfolios. And in conjunction with an options collar spread, a hedged position might be considered despite the threat of lower share prices. While the collar strategy is directionally bullish, when actively managed, it can be traded to allow for accumulating on stock weakness with vastly reduced risk. ![]()
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