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- I’m upgrading Nvidia Corporation to “Buy” despite the stock’s 11% pre-market drop, viewing the dip as a buying opportunity amid market panic over DeepSeek’s AI advancements.
- DeepSeek’s success, using Nvidia’s H800 GPUs, highlights Nvidia’s critical role in AI, suggesting increased future demand for its GPUs from U.S. tech firms.
- Nvidia’s GPUs remain best-in-class; DeepSeek’s breakthrough is more about engineering skill than hardware, potentially driving more investment in AI infrastructure.
- Risks include market disagreement with my bullish stance and potentially lower demand for Nvidia’s new products, but I believe Nvidia will benefit from ongoing AI advancements.
- Despite some risks, I think that Nvidia is actually the beneficiary of what’s going on around DeepSeek’s release and other LLMs. Don’t panic, consider buying the dip.
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My Thesis Update
I first wrote about Nvidia Corporation (NASDAQ:NVDA) stock here on Seeking Alpha in late February 2024 with a “Hold” rating. I warned investors that they should watch out for the industry’s cyclicality, expecting. Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information. He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.
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