Nvidia's most recent trend suggests a bearish bias. One trading opportunity on Nvidia is a Bear Call Spread using a strike $412.50 short call and a strike $417.50 long call offers a potential 26.58% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $412.50 by expiration. The full premium credit of $1.05 would be kept by the premium seller. The risk of $3.95 would be incurred if the stock rose above the $417.50 long call strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for Nvidia is bearish and the probability of a decline in share price is higher if the stock starts trending.
The 20-day moving average is moving down which suggests that the medium-term momentum for Nvidia is bearish.
The RSI indicator is at 56.49 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Nvidia
3 Stocks That Could Be Worth $1 Trillion in a Decade
Sun, 26 Jul 2020 20:42:00 +0000
As of this writing, Apple is the world's most valuable public stock with a market capitalization of $1.60 trillion — part of the “trillion-dollar club” that includes Microsoft, Amazon, and Google parent Alphabet. Since the iPod was released in 2003, and more importantly the iPhone four years later, I've lost count of how many times I've heard the argument that Apple's run is over. Three of my “forever” large cap stocks that I think could join the ranks of 13-digit valuations are salesforce.com (NYSE: CRM), PayPal (NASDAQ: PYPL), and NVIDIA (NASDAQ: NVDA).
12 All-Weather Stocks That Could Thrive After Coronavirus
Sat, 25 Jul 2020 17:57:00 +0000
Portfolios that have focused on capital expenditures and research and development have outperformed the S&P 500 by almost 5 percentage points.
Intel’s Manufacturing Delay Is a Red Flag for All Chip Stocks. Here’s Why.
Fri, 24 Jul 2020 22:15:00 +0000
Intel’s embarrassing disclosure that its next-generation manufacturing is delayed at least six months triggered a seismic shift in the thesis surrounding semiconductor stocks.
Why Advanced Micro Devices Stock Belongs in Long-Term Portfolios
Fri, 24 Jul 2020 20:16:52 +0000
Santa Clara, California-based Advanced Micro Devices (NASDAQ:AMD) is expected to report second-quarter earnings on July 28 after the close of market. Year-to-date, AMD stock is up nearly 34% — which technically means it is in a bull market. By comparison, the widely followed iShares PHLX Semiconductor ETF (NASDAQ:SOXX) is up about 14%.Source: Sundry Photography / Shutterstock.com Although chip stock like AMD were among those shares that sold off rapidly in the novel coronavirus triggered selloff during February and March, most chip stocks have had a remarkable comeback since hitting 52-week lows in late March. In fact, on March 18, AMD shares hit a 2020-low of $36.75. Now, they are around $61. Put another way, they are up an eye-popping 58%. If you were enough to invest $1,000 in the company then, you'd now have about $1,600.Today, I'd like to take a closer look at the outlook for the company for the rest of the year. We're in the midst of a busy earnings season. Many semiconductor stocks will report earnings in the coming weeks. Weaknesses in their fundamental metrics or even a potential warning by one of the large-caps for future quarters could affect the overall industry. However, in the long-run, I remain bullish on the future of the semiconductor industry and AMD shares.InvestorPlace – Stock Market News, Stock Advice & Trading TipsTherefore, investors should regard any dip in price as an opportunity to buy AMD stock. And here's why. Semiconductor Industry Is ImportantSemiconductors are the brains inside electronic devices. Chips are used in a wide range of products in computing, telecommunications, gaming, transportation, military systems and healthcare. They are typically behind technology innovation, and as a result, shares of semiconductor companies usually act as a bellwether for the technology sector as a whole. * 10 Cybersecurity Stocks We Need Now More Than Ever In turn, InvestorPlace readers are likely to be familiar with how the semiconductor industry is cyclical. During periods of high demand, upturns occur. There may also be supply shortages, which lead to higher prices and revenue growth. Thus, profits of chip companies may ebb and flow dramatically. It's never easy to know whether the downside of a given cycle might take longer than previously expected.At present, the current health and economic environments in the U.S. and globally present an array of uncertainty. For most semiconductor companies, China is both a consumer and a supplier. China consumes more than 50% of all semiconductors made worldwide. Furthermore, many U.S. technology companies either have manufacturing plants in China or use Chinese companies in their supply chains. Therefore, outlook form both the U.S. and China will be important in the rest of the year.Yet, in the coming years, new frontiers in technology — such as the internet of things (IoT), artificial intelligence (AI), autonomous driving, and 5G — will likely turbocharge many semiconductor shares, including AMD stock.That said, the company's two main competitors are Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA). Therefore, potential shareholders may also want to pay attention to these two stocks. What to Expect from Q2 EarningsAdvanced Micro Devices was founded in 1969 as a Silicon Valley startup focusing on leading-edge semiconductor products. Today, it has grown into a global chip company with a focus on developing high-performance computing and visualization products. It is also number 460 on the Fortune 500 company list.In late April, the company released Q1 results. It had revenue of $1.79 billion, operating income of $177 million and net income of $162 million. Moreover, diluted earnings per share came at 14 cents compared to diluted earnings per share of 1 cent year-over-year and 15 cents in the prior quarter. Finally, gross margin was 46% — up 5 percentage points YOY and 1 percentage point quarter-over-quarter, primarily driven by Ryzen and EPYC processor sales.The company reports in two segments: * Computing and Graphics (revenue was $1.44 billion, up 73% YOY and down 13% quarter-over-quarter); * Enterprise, Embedded and Semi-Custom (revenue was $348 million, down 21% YOY and 25% sequentially).In total, Q1 revenue was 40% YOY primarily driven by higher Computing and Graphics segment revenue. Yet, revenue was down 16% quarter-over-quarter due to lower revenue in both segments.That said, CEO Dr. Lisa Su had this to say about the company's performance:"We executed well in the first quarter, navigating the challenging environment to deliver 40 percent year-over-year revenue growth and significant gross margin expansion driven by our Ryzen and EPYC processors. While we expect some uncertainty in the near term demand environment, our financial foundation is solid and our strong product portfolio positions us well across a diverse set of resilient end markets…. Our strategy and long-term growth plans are unchanged."So when Advanced Micro Devices reports next week, the Street would like to see strong revenue numbers. It'd also like to get a better feel for the outlook in the rest of the year. The Bottom Line on AMD StockWe are entering a busy earnings season. As a result, and given the recent stellar increase in the prices of many semiconductor stocks, there may likely be short-term volatility and profit-taking in the sector.However, long-term investors can regard any dip in AMD stock, especially toward the $50-level, as a good opportunity to buy into the shares. Its 52-week price range has been $27.43-$59.27.During the bull run of the past decade, semiconductor stocks have been essential drivers of the broader technology sector's upside. I believe a similar story will likely unfold in this decade, too.And in 2-3 years, I expect AMD stock to reach $100.Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Why Advanced Micro Devices Stock Belongs in Long-Term Portfolios appeared first on InvestorPlace.
Why You Should Continue to Avoid General Electric Stock
Fri, 24 Jul 2020 16:51:07 +0000
General Electric (NYSE:GE) was struggling going into the novel coronavirus outbreak and it's struggling amid the pandemic. Is that a good enough explanation as to why to avoid it? Likely not. GE stock remains 46% below its February high, while falling almost 60% from peak to trough.Source: Sundry Photography / Shutterstock.com Based on just those two performance metrics, investors would have been far better off in an index fund. They would have experienced less volatility — the S&P 500 and Nasdaq fell 35.4% and 32.6% from peak to tough, respectively — and more gains on the rebound. The S&P 500 is less than 5% off its February highs, while the Nasdaq has bombarded its way to record highs. GE stock, on the other hand, has rallied just 28.5% from the lows. That sounds impressive, but lags its peers, sector and even the S&P, (the latter of which is up almost 50% from the lows). InvestorPlace – Stock Market News, Stock Advice & Trading TipsBut its performance vs. the index isn't necessarily why investors should avoid the name. Instead, they should avoid it because the business remains at risk. GE Stock Is Stuck In ReverseThis business continues to get hammered. Not only is Covid-19 acting as a drain on free cash flow, but it's sapping the industries that General Electric relies on. * 10 Cybersecurity Stocks We Need Now More Than Ever I do want to say that CEO Larry Culp has done a good job with GE in his short time with the company. He has acted swiftly to improve cash flow, raise capital and shore up the balance sheet. He's trying to turn around a boat in the ocean, but this isn't a Boston Whaler — it's an aircraft carrier. General Electric had so many pockets of weakness under its umbrella that it's impressive the entire thing didn't collapse. That ranges from poorly timed deals in the energy space to ballooning pension obligations. Even with many of these issues cleared up or improved on, what makes this investment attractive? The fundamentals continue to decline, its end markets are under pressure and there is no growth. Analysts expect sales to fall year-over-year again in 2020, this time by 17% to just $79 billion. Keep in mind, General Electric racked up $121.6 billion in sales two years ago in 2018. On the earnings front, consensus expectations call for an 86% plunge to 10 cents per share. Who cares if estimates for 2021 call for a near-350% rebound in earnings to 40 cents per share? Even if that comes to fruition, it's still down almost 40% from last year's earnings. That's on just 4% revenue growth forecasts, by the way. Again, I commend Culp on the job he's done under the circumstances that he is operating under. In his own words, GE is working on "a series of actions to de-risk and de-lever our balance sheet amid a challenging environment." But it isn't easy. Bottom Line on General Electric Click to EnlargeMy biggest issue with GE isn't estimates for 2021 or that the stock price underperformed the indices on the way down and has lagged on the way up. My problem with General Electric is simply the business. Last quarter had free cash outflow of more than $2.2 billion. That was an 80% decline from the same period a year ago, where the company had an outflow of $1.21 billion. It was also worse than the $2 billion estimate that analysts were looking for. GE is made up of five units, the largest of which is aviation. The other four include: Power, Renewables, Healthcare and GE Capital. Renewables reported a solid 26% jump in revenue, but segment profit plunged more than 60% year-over-year. Further, this unit reported a loss of more than $300 million in the quarter. Healthcare saw a 1% jump in revenue and a 15% boost in segment income to $896 million. That was a bright spot.Three of the five segments overall reported a loss, with gains coming only in aviation and healthcare. However, the destruction in aviation is a huge concern. With airlines seeing only a slow return to flying and aircraft demand under extreme pressure, this unit is a worry. Be it Boeing (NYSE:BA), Delta Air Lines (NYSE:DAL) or others, this sector is troubled. When a company's largest unit is limping like this, it's hard to be a buyer of the stock. This leaves GE stock as a "prove-it" stock and not one that earns the benefit of the doubt. General Electric is set to report earnings at the end of July. Let's see what Culp & Company have to say then. If they've pared down enough risk, we may be willing to change our tune on this struggling icon.Matthew McCall left Wall Street to actually help investors — by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now. As of this writing, Matt did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Why You Should Continue to Avoid General Electric Stock appeared first on InvestorPlace.
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