Considering Nvidia In The Run Up To Earnings

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It Definitely Could Go Higher, But...

by Alex King, CEO, Cestrian Capital Research, Inc.

This note was originally prepared on Nov 14th. Apologies for the delay in posting. Inner Circle members were alerted to our updated thoughts in real-time Slack alerts.

We made a bold “Accumulate” call on Nvidia stock in the depths of the bear market in 2022. The company fundamentals were weak (no growth and declining cash generation), nobody was all juiced about AI, and the CEO wasn’t attending conferences signing autographs. We rated the stock at “Accumulate” between $10-15 on a split-adjusted basis. Yesterday it closed at $146. So, if you bought at the top of our “Accumulation Zone” you’re up nearly 10x and if you bought at the bottom of that zone, you’re up nearly 15x. Not too shabby.

It's time to look closely at the stock in advance of earnings this week.