Nvidia is supposed to report results tomorrow and we decided to update our charts of Nvidia vs Cisco and decided to add Intel to the mix. There is surprising similarity between the stock charts of all three but will they hold?
If the pattern does hold Nvida *may* start to decline about a year from now or 272 trading days but there is no guarantee that will happen. An article on Financial Times states that Amazon is holding any more orders for Nvidia chips until they get their new faster chips.
This could lead to a doom loop where companies await newer chips and there is never enough of the newer chips so they wait for the next generation of chips. Other competitors step in to take market share then the stock price starts to decline and any advantage Nvidia had begins to decline.
We are tempted to explore puts on Nvidia and we are researching them now but since it’s 272 trading days away and anything can happen, we’ll wait to see tomorrow’s financial results.
In the meantime, stay tuned, stay profitable and stay solvent..