πŸš€ Buy Nvidia Before The 10-for-1 Stock Split Or Wait? | NVDA Stock Analysis

Joey Choy
2 Jun 202409:24

TLDRNvidia is experiencing a significant surge in stock value, driven by robust earnings and a 260% increase in revenue, largely due to the demand for its GPUs in the AI market. With a 10-for-1 stock split on the horizon, the video discusses whether to buy before or after the split. The analysis suggests that the decision to buy now or post-split doesn't significantly impact the investment's value, as the market value remains the same. The video also highlights Nvidia's strong performance, positioning it as a key player in the AI sector, with potential for further growth.

Takeaways

  • πŸš€ Nvidia is experiencing a significant rally, with its stock price rising from $500 to near $1,000.
  • πŸ“ˆ The company reported a 260% increase in revenue, with data center revenue jumping from last year's figures to 22.6 billion.
  • πŸ”‘ Nvidia is a key player in the AI space, supplying GPUs to major companies like Microsoft, which are in high demand.
  • πŸ’‘ CEO Jensen Huang has stated that the next industrial revolution has begun, indicating a strong future for the company.
  • πŸ“… Nvidia underwent a 10-for-1 stock split after the close of trading on June 7th, making the stock more affordable for retail traders.
  • πŸ’Ή The stock split does not fundamentally change the company's value; it merely adjusts the stock price and the number of shares held by investors.
  • πŸ“Š Nvidia's stock price consolidation pattern suggests a potential for further upward movement, breaking through key resistance levels.
  • πŸ“‰ The psychological resistance level of $1,000 has been a critical point for Nvidia's stock, which has now been surpassed.
  • πŸ“ˆ The moving averages indicate a bullish trend for Nvidia, with the 100-day moving average above the 200-day, signaling a strong uptrend.
  • πŸ“Œ The stock's support level post-split will be $100, with potential for further increases to $120 or $150 if it remains above this level.
  • πŸ“Š The One GT system, which provides entry and exit signals for stocks, has given a bullish signal for Nvidia, suggesting further potential for growth.

Q & A

  • What is the significance of Nvidia's 10-for-1 stock split?

    -The 10-for-1 stock split is significant as it makes the stock more affordable for retail traders and increases the number of shares a holder owns by 10 times, while the overall market value of the portfolio remains the same.

  • When did Nvidia announce its strong quarterly earnings?

    -Nvidia announced a 260% increase in revenue and very strong quarterly earnings more than a week before the video was made.

  • What was the increase in Nvidia's data center revenue from the previous year?

    -Nvidia's data center revenue jumped by 427% from the previous year to 22.6 billion.

  • Why is there a strong demand for Nvidia's GPUs?

    -There is a strong demand for Nvidia's GPUs because they are essential for generative AI trading, and Nvidia supplies many of these units to companies like Microsoft, which are experiencing high demand.

  • When did Nvidia's stock split take place?

    -Nvidia's stock split took place after the close of trading on the 7th of June.

  • What is the impact of the stock split on the price of Nvidia's stock?

    -After the stock split, the price of Nvidia's stock will be adjusted downwards by 10 times. For example, if the price was $1,000 before the split, it would be about $100 after the split.

  • What is the historical significance of Nvidia's stock splits?

    -Nvidia had previously done a 4-for-1 stock split in 2021 when the price was about $600, which adjusted the price down to about $150.

  • What is the psychological significance of the $1,000 level for Nvidia's stock?

    -The $1,000 level was a critical psychological resistance level for Nvidia's stock. After breaking this level, it became a new support level, indicating a strong uptrend.

  • What does the moving average trend indicate for Nvidia's stock in the long term?

    -The moving average trend, with the 100-day moving average above the 200-day moving average, indicates a bullish crossover and a strong uptrend for Nvidia's stock in the long term.

  • How does the One GT system mentioned in the video assist in stock trading?

    -The One GT system provides alerts on stocks like Nvidia, guiding traders on entry and exit points, and helping to identify bullish signals and trends.

  • What is the advice given in the video regarding buying Nvidia stock before or after the stock split?

    -The advice given is that it doesn't matter much whether to buy before or after the stock split, as the overall market value remains the same. The decision should be based on whether one believes the stock can go higher before the split.

Outlines

00:00

πŸ“ˆ Nvidia's Stock Surge and Upcoming Stock Split

This paragraph discusses the impressive performance of Nvidia's stock, which has seen a significant rally from $500 to nearly $1,000, marking a 260% increase in revenue. The video script introduces Joy from TopoTrader in Philip Securities, who will analyze Nvidia's stock charts and recent developments that have led to this multi-year high. A key event mentioned is the 10-for-1 stock split that Nvidia is planning, which has raised questions about whether to buy before or after the split. The script provides a brief on Nvidia's strong quarterly earnings, its role in the AI space, and the demand for its GPUs, particularly from companies like Microsoft. The CEO of Nvidia is quoted, suggesting that the next industrial revolution has begun, and the script outlines the dates and implications of the stock split.

05:01

πŸ’‘ Timing Your Nvidia Stock Purchase Pre or Post-Split

The second paragraph delves into the strategic considerations for purchasing Nvidia stock in relation to the upcoming stock split. It explains the mechanics of a stock split, emphasizing that while the stock price is adjusted downwards, the overall market value of an investor's portfolio remains the same due to the increase in the number of shares. The script provides a historical perspective on Nvidia's previous stock split in 2021 and its subsequent performance. It also discusses the current trading range of Nvidia's stock and its recent breakout above the psychological resistance level of $1,000. The paragraph suggests that the decision to buy before or after the split depends on an investor's belief in the stock's potential for further growth. It also touches on technical analysis, mentioning moving averages and support levels, and references a bullish signal from the presenter's One GT system, indicating a strong uptrend for Nvidia.

Mindmap

Keywords

πŸ’‘Stock Split

A stock split is a corporate action that increases the number of a company's outstanding shares by issuing more shares to current shareholders. In the context of the video, Nvidia is undergoing a 10-for-1 stock split, which means for every share an investor holds, they will receive nine additional shares after the split. This typically does not change the company's market capitalization but makes the stock more affordable and could increase liquidity. The video discusses whether it's better to buy Nvidia stock before or after the split, highlighting that the stock split date is a key event for investors.

πŸ’‘Nvidia (NVDA)

Nvidia Corporation, commonly referred to by its ticker symbol NVDA, is a leading technology company known for its graphics processing units (GPUs) and its significant role in the artificial intelligence (AI) and data center markets. The video script discusses Nvidia's strong performance, particularly in relation to its AI offerings and how it is a key player in the tech industry, which is why it's a stock of interest for investors considering the upcoming stock split.

πŸ’‘Revenue Increase

The term 'revenue increase' refers to a rise in the income that a company generates from its business activities. In the video, it is mentioned that Nvidia reported a 260% increase in revenue, indicating a significant growth in the company's sales and financial performance. This substantial increase is attributed to the strong demand for Nvidia's products, particularly in the generative AI space.

πŸ’‘Generative AI

Generative AI refers to artificial intelligence systems that can generate new content, such as texts, images, or videos, that are similar to the data they have been trained on. The video mentions that Nvidia supplies GPUs to companies involved in generative AI, which is a rapidly growing field. This demand for GPUs is one of the factors contributing to Nvidia's revenue increase.

πŸ’‘GPU (Graphic Processing Unit)

A GPU is a specialized electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display device. In the context of the video, GPUs are highlighted as a critical component for companies involved in AI and data processing, and Nvidia is a major supplier of these units, contributing to its strong financial performance.

πŸ’‘Market Value

Market value refers to the value of a company's stock based on what the market is currently willing to pay for each share. The video explains that despite the stock price being adjusted downwards after the split, the overall market value of an investor's portfolio remains the same because the number of shares increases proportionally, maintaining the market value.

πŸ’‘Psychological Level

In stock trading, a psychological level is a price point that has a significant psychological impact on investors due to its round number or historical significance. The video mentions $500 and $1,000 as psychological levels for Nvidia's stock, where the stock's price faced resistance before breaking through and rallying upwards.

πŸ’‘Support and Resistance Levels

Support and resistance levels are prices at which many buyers or sellers are likely to buy or sell a stock, respectively, making it difficult for the price to move beyond these levels. In the script, $1,000 is mentioned as a resistance level that Nvidia's stock has broken through, and post-split, $100 is expected to act as a new support level.

πŸ’‘Bullish Signal

A bullish signal in stock trading is an event or pattern that suggests the price of a security is likely to rise. The video script mentions receiving a new bullish signal for Nvidia on May 6th, indicating that the stock's price was expected to increase, which is a positive sign for investors considering buying the stock.

πŸ’‘Moving Averages

Moving averages are technical indicators used in stock trading that help smooth out price data and identify trends by creating a constantly updated average price. The video discusses the 100-day and 200-day moving averages for Nvidia, using them as indicators of the stock's bullish trend over the long term.

πŸ’‘One GT System

The One GT System mentioned in the video is a proprietary trading tool or method used by the speaker to identify entry and exit points for stocks. It appears to provide signals that help in making trading decisions, such as the bullish signals for Nvidia discussed in the script.

Highlights

Nvidia's stock price rallied from $500 to near $1,000, marking a 260% increase in revenue.

Nvidia's data center revenue jumped by 427%, reaching 22.6 billion.

Strong demand for generative AI trading has fueled Nvidia's revenue spike.

Nvidia supplies GPUs to companies like Microsoft, facing more demand than supply.

CEO Jensen Huang announced the beginning of the next industrial revolution.

Nvidia underwent a 10-for-1 stock split to make shares more affordable.

Investors needed to hold Nvidia stock by the end of trading on June 6 for the split to apply.

Nvidia will begin trading on a split-adjusted basis on June 10.

A stock split adjusts the stock price down by the split ratio but increases the number of shares.

Nvidia's previous stock split in 2021 was a 4-for-1, reducing the price from about $600 to $150.

Nvidia's stock price has been consolidating between $750 and $1,000 for the past three months.

The psychological resistance level of $1,000 has been a critical point for Nvidia's stock.

Nvidia's stock broke the $1,000 resistance level, indicating a strong uptrend.

Nvidia's stock performance suggests potential for further upside after the stock split.

Nvidia's 100-day and 200-day moving averages show a bullish crossover, indicating an uptrend.

The one GT system has given multiple bullish signals for Nvidia, suggesting a strong trend.