NVIDIA Corporation (NVDA) Options

I wanted to explain myself a little better in a couple past posts about Intel and bankruptcy. A lot of people probably read those posts and thought he's in la la land. Intel has a lot of problems, but I think their biggest underlying problem is the exposure to X86 architecture. It use to be the Arm conversion to legacy X86 software was a problem not anymore. The X86 architecture will be even more detrimental in the future due to its power consumption. They lost out in mobile because of it. Qualcomm, Nvidia and others will eventually eat their lunch in Arm CPU acceptance. 

It seems like everyone and everything has an agenda, the investor has to weed through all of it for the facts 

At least it seemed that way in most all the articles I read.

It also coincided with the overall market falling after increased tariffs were announced for Canada, Mexico, and China.

WhiIe I can’t speak for you, there are very few, if any, journalists that I would take any investing advice from. And I might say the same thing about many of the analysts.

Perhaps we need to be more selective about whose posts we read and which journalist we respect enough to even skin through their articles. I used to highly regard Barron’s. most of the time I no longer read more than the headline for any particular article.

I realize that stock prices decrease for many reasons.

I think that most would say that the most overwhelming reason expressed for the disappointment in NVDA’s 4th Q was the decrease in gross margin.

It was talked about everywhere. Most anyone who wrote an article and talked about the decrease in share price mentioned that as the reason.

At least it seemed that way in most all the articles I read.

Many factors affect stock prices. Looking at average numbers for a sector can be very misleading as there are almost always very high variations from top to bottom and not all factors affecting pricing will be consistent with each other go to the whole sector.

While Andy Grove was the CEO at Intel, Intel had the best margins in the industry and priced its products so that potential competitors were kept on the verge of bankruptcy.

I doubt that either you or Shawne would buy a stock based upon looking at a single factor. Both of you seem to have a reasonable understanding of both fundamentals and technicals.

I find posts that focus on a single factor without any regard for many of the more important factors. I have no value to myself and probably of not much value of any to others.


I had prepared the table, which somehow got thrown away. It would’ve gone right about here.

I’m too lazy to prepare it agaiin

The following takeaways, probably give you the gist of what I was going to say.




Key Takeaways:
• Nvidia has a strong gross margin (75.86%) and a relatively lower PEG ratio (0.80), indicating expected growth relative to valuation.
• Intel currently has a negative P/E ratio (-5.42) due to losses, so a PEG ratio is not meaningful.
• Broadcom has an extremely high P/E ratio (162.13), suggesting an expensive valuation despite its strong gross margin (75%).
• AMD has a high P/E ratio (99.86) but lacks a PEG ratio estimate.

Sources: StockAnalysis Investing.com FinanceCharts ? ? ? ?.

Did you or did you not post this??

I believe decreasing margins should be expected. Nvidia is no longer the only game in town. Even at their current margins, they are still high.

How could you believe that NVDA's margin's "are still high", when the average Semiconductor gross margins are far lower than that? Are you saying that NVDA isn't doing well or that they are just doing too well?

NVDA just saw their stock price decrease because investors saw their gross margin go down to 70%....a figure that is higher than most every other semiconductor company. And yet you state "it's still too high".

Amazing.

I gave you my answer which you have always avoided. The whole idea of 70% being low was from Nvidia. You really don't listen to full Q's or Q&A's do you? Maybe you should try it before making some of your comments.
PS- I don't like making some of my responses the way I do but it get's frustrating when people don't listen to a full Q conference and then makes the comments they do.

That's nice, but I thought you wanted to talk about the margins of semiconductor companies???

Do you have any comment on the fact that if semiconductor companies average gross margin is 60-65%, why NVDA is taking a hit for having a 70% margin?

I mean sure, it was higher. But even 70% gross margin is higher than almost all the other semiconductor companies.

Or why Broadcom (A.K.A. AVGO, a stock you seem to highly regard) has a much lower gross margin than NVDA at this point, but you only seem to diss NVDA's gross margin?

Nvidia's new ARM chip for PC's doesn't seem to be that good. So I doubt both Nvidia and the market will be seeing anticipated volumes. I'm sure Nvidia will come out with another new ARM but how much better will it do?
https://www.yahoo.com/tech/nvidias-long-awaited-arm-based-170926958.html

You can question copilot using the same language I did. You'll get the same list. I had nothing to do with the fact that copilot left semiconductor's off the list.

As a matter of fact, to check YOUR figures (which I usually find worth doing), I just asked copilot "What is the average gross margin for semi conductor companies". This is the answer I got.

The average gross margin for semiconductor companies can vary, but it generally falls within the range of 45% to 60%2. For example, companies like NVIDIA and Broadcom have gross margins around 64% and 63% respectively. Other companies like Texas Instruments and NXP Semiconductors have gross margins around 58% and 56%.

And I truly did not remember Huang saying that. But - my question is? If the average gross margin for semiconductor companies (like NVDA) is listed at 45% - 60%??? The why are people bitching and moaning about NVDA's 70% margins? Also? IF the average semiconductor margin is high at 60%? I wonder why Huang thinks 70% is low? Must be low for only NVDA, eh???

I specifically asked copilot about AVGO's (Broadcom's) margins (a company for whom you seem to have expressed love for) and it again stated a margin of 63% - FAR lower than NVDA's! Wonder why? I wonder if AVGO's stock price takes a hit for that number???

One of Nvidia's biggest markets has been semiconductor chips. Surprised you left that off. The average is 50% Gross Margin. You also left out the fact it was Nvidia's CFO who stated in a Q&A that Nviidia felt 70% was low. Interesting how you avoided that.

Pretty amazing that most investors aren't pleased with NVDA's gross margins. I realize that the margin has been decreasing. Yes. But 70% gross margin???? It seems pretty good. Then I said to myself - I really do not have a good idea of what even an "average" margin would be for a computer hardware manufacturer. And I do realize that NVDA is more than that., but it is mostly being judged on the margins centered around that very thing - sales of hardware.

So, I asked copilot - what are the gross margins for specific industries? Here is what it returned for an answer -

Gross margins can vary significantly across different industries. Here are some examples of average gross margins for various industries:

Advertising Agencies: 46.1%

Aerospace & Defense: 26.5%

Apparel Manufacturing: 48.9%

Asset Management: 82.4%

Auto Manufacturers: 14.2%

Banks - Diversified: 88.9%

Beverages - Non-Alcoholic: 48.5%

Biotechnology: 86.7%

Chemicals: 20.6%

Computer Hardware: 39.3%

Credit Services: 83.5%

Drug Manufacturers - General: 72%

Food Distribution: 14.5%

Grocery Stores: 27.6%

Healthcare Plans: 55.8%

Pharmaceuticals: 57.8%

Software: 70.9%

So, between Computer Hardware at 39.3% and Software at 70.9%??? I think that most people's expectations for NVDA's gross margin are fairly unreasonable.

Unfortunately, it is what it is. Nothing we can do about it. It is obviously because the gross margin is decreasing, not that it isn't pretty good.

https://www.msn.com/en-us/money/other/fund-manager-who-predicted-nvidia-rally-revamps-stock-forecast/ar-AA1A3i7O?ocid=msedgntp&pc=U531&cvid=e03d371c9f8546c38a2bbc5b18bc1d95&ei=6

"Even though some on Wall Street are nudging their price targets higher by a few dollars, following last night’s earnings report from Nvidia, we are maintaining our $175 price target," said Versace in a TheStreet Pro post. "We’re going to see some EPS re-jiggering largely due to Nvidia’s gross margin guidance. The company sees its non-GAAP gross margin falling to 70.6% to 71.0% in the current quarter, down from 73.5% in the January quarter and 75.0% the one before that."

"What’s weighing on those margins, at least in the near term, is the continued ramp of Nvidia’s Blackwell solutions," noted Versace. "As production matures, Nvidia’s management expects those margins will return to the mid-70s “later this year.”

Margin headwinds aren't great, but they're not unexpected as Nvidia ramps up investments to capture a huge market opportunity. As Versace points out, "While there is fodder for the Nvidia bulls and bears... the reality is that we are still in the early innings when it comes to AI."

What will it take for Versace to increase his price target?

"Rather than assume the margin impact of the Blackwell ramp will be limited to one or two quarters, we’ll look for confirmation margins are getting back on track before revisiting," concluded Versace.

Yes I had Waterhouse Securities at the time commission was based on amount of shares and price. It was expensive back then and about the only way to keep up with stocks I was to subscribe to Wall Street Journal. I won't say those were good times:)

Remember the old days in the 70's when you paid the broker $100 commission to buy 100 shares.
Plus they called you at least two times a day and every week they had a different game plan which resulted in churning your account.🥶

Because most people are comfortable and using a broker many people don’t know much about

Way too much capital intensive to run a Fab , that is why everyone is Fabless and Intel is in trouble. AMD knew this and spun off their Fab Global Foundries many years ago. Like I said earlier if Intel doesn't make a deal on their Fabs they will be in bankruptcy proceedings.

Thank you everyone for allowing me to buy more NVDA. If even more really really super smart people can unload - I can buy more - thanks! Ai has no future - so I am sure you wont need them shares. just sayin.

Intel needs to get out of the foundry business. I wonder if NVDA would ever try to manufacture their own semiconductors? Billions being handed out in the CHIPS act. Hope the link works:

https://www.cnbc.com/video/2025/02/19/intel-needs-to-get-rid-of-the-foundry-business-says-citis-christopher-danely.html

Intel
is pushing off the opening of its Ohio chip manufacturing facility, the embattled chipmaker said Friday.

The company said it won’t complete construction on the first plant until 2030, starting operations that year or the next. The second factory in the up to $100-billion complex will likely be finished in 2031 and start running the following year. The company had initially planned to begin production on the first plant in 2025.


“As we continue to invest across our U.S. sites, it’s important that we align the start of production of our fabs with the needs of our business and broader market demand,” said Naga Chandrasekaran, vice president and head of global operations officer for Intel Foundry Manufacturing, in a release. “This has always been our approach, as it allows us to manage our capital responsibly and adapt to the needs of our customers.”

Intel, long the world’s leading semiconductor maker before losing that distinction in recent years, has been on a downward slide due largely to its position on the sidelines of the artificial intelligence boom. The stock lost more than half its value last year and the company has been reckoning with slowing sales while also trying to move deeper into the capital-intensive business of chip fabrication.

In August, shares suffered their worst one-day drop on the stock market in 50 years after the company announced disappointing quarterly results. Intel also said it would axe 15% of its employees. That’s made the company a potential takeover target as of late, while also leading to the firing of CEO Pat Gelsinger in December.

Intel was a central beneficiary of former President Joe Biden’s CHIPS and Science Act office. The government most recently awarded the company a roughly $8 billion grant in November in an effort to boost semiconductor production on U.S. soil.

$AMD made a small splash today against $NVDA. Not reflected in stock price.
https://wccftech.com/amd-strikes-back-at-nvidia-rtx-5070-ti-radeon-rx-9070-xt-same-native-rt-performance-for-150-usd-less/

Interesting Nvidia share price rise today, even though chart's negative.
Price is a Prime Indicator among technical indicators. That is positive.
Happy Weekend, Cheers, & GLTA

$123 end of day thank you ..options players toasted with decay delight 

$121.56 ..Close shouldn't be bad middle of day slaughtering options players puts and calls players equally lol.
NVDA not only powers data centers it powers up the whole stock market they won't let it die. Tom Brady and NVDA energizer batteries 

Sounds like you have no faith in equities. When I first started trading I was flummoxed as well. Then I realized that I wasn’t doing my due diligence correctly. I was taking shortcuts, reading stock message boards and reading certain analysts. You eventually learn that a lot of them are being paid for their glowing reports and shouldn’t be trusted at all.

What helped me was when I got into the 10Qs and 10Ks. Takes a lot of reading but worth it.

Then we witness what just happened to NVDA with their fantastic earnings report and it makes one think they know nothing. GLTY

$NVDA $100+ Million of Bullish Premium already today
By: Cheddar Flow | February 28, 2025

• $NVDA $100M+ of Bullish Premium already today.



Read Full Story »»»

DiscoverGold

I want to thank everyone for their answers to my question concerning the timing of a sale and repurchase of an equity. Great board!

There's no manipulation in the market. None at all.
CLEU
This stock was trading over $7.90 a share less than a month ago and today it trades at under 5 cents. Yeah, it's all on the up and up. Nothing to see here little child. Anyone promoting any company is in on it. Remember this.
P.S. My cousins husband worked at Wall St. for years in NYC. All the bs, fraud, corruption and lies took its toll. He ended up having a nervous breakdown and getting a divorce. Most likely in Pilgrim State now in Brentwood NY not too far from his former home in Northport.

NVDA share price DOUBLE BOTTOM BREAKDOWN on 28-Feb-2025. BLTA

I believe what you are referring to is a wash sale, for losses. This is the rule:

"After selling a security at a loss, you must wait 31 days to repurchase the same or a substantially identical security to avoid triggering the wash sale rule. The rule applies to both 30 days before and after the sale, meaning a total of 61 days must be considered when planning trades to avoid a wash sale"

There is no rule that says you must wait to repurchase for 30 days. You can repurchase any time you want, but there are tax penalties associated with that.

This does not apply to selling a stock at a profit and rebuying when the stock drops.

GLTY

Sounds like you have done very well with it, with a 40x. Congratulations!

It seems that you got in earlier than I did and good for you. I made money with the buy and hold for about 18 months and then traded the stock, when the momentum susbsided.

The article you posted makes sense and I believe there is more upside potential here. The fundamentals are great. The concern I have at the moment is the market in general. Goldman Sachs came out with an article today about the likelihood of a correction in the next three months. So of course, that is of concern.

However, if these global wars come to a conclusion and the tariffs produce the desired effect without a big trade war, the markets may respond favorably. Hopefully, thats the case.

GLTY

They most certainly do. They know where the wave of BUYS will go and buy accordingly. Same in the reverse. They short because they know where the wave of selling will go. I guarantee you 100% that people here who make you think they are altruistic will lead you to a stock as a "tip" to buy it and then after the buys flood in, they SELL their holdings and everyone else is left holding the bag. I have no faith anymore in humanity.

As an aside... I am the complete opposite. I actually hurt myself by thinking of others. When I sold my house, I gave the buyer who was a neighbors daughter a discount because I felt bad for her that she kept getting outbid while trying to buy other houses and the fact that she had student loans to pay. So as an altruistic gesture on my part, I lost about $30K from what I could have received if I had my house open to bidders. I also took into account that she was willing to keep my tenant who had no other place to live. So I put my good nature above my pockets. Something I have yet to see in return from others. I may be a FOOL, but my conscience is CLEAR and God smiles and is proud of me for it.

Re-read my post. I did NOT say that some people didn't have insider knowledge. It's obvious SOME people probably do have it.

I said I doubted anyone posting HERE has insider knowledge.

Explain how Pelosi who is dumb as a pet rock picks winning stocks better than the S&P500 ?? No one will convince me that people here who make $millions are just timing stocks perfectly every time because they are "smarter" than the rest of us. I have been watching stocks for 20 years. "Fundamentals" mean dick. I have seen great companies who actually make profit have their stock value destroyed. While other companies who lose money year over year and are in debt over the heads have their share price skyrocket. It's a bullshit game and club sucking wealth from newbies no different than a pyramid scheme. Those who win are those who are connected. If I were wrong, there would be no such thing as shorting. End of story.

NVDA resistance at $123.70 to $124.65 then $126.63 watch to cash out rest of NVDL at $52s $53s
NVDL $49.80 + 4.3%

NVDL in at $45.23 out some at $49.30 

$117.83 Have insider knowledge lol..buy buy at $116. Insider tip ...the fear gauge meter was at 120% coming down now in reversal $$

Buying and selling stocks, mutual funds, etf etc. in traditional IRA is not taxed within the IRA. When you take money out of IRA (considering your 591/2 years old or older) it is considered ordinary income and taxed at whatever rate you are with your income that year. A stock could have made you 2000% inside your IRA doesn't matter it will be taxed as ordinary income rate when you remove. Not sure about Roth IRA probably same after at least 5 years investment and meet age requirements.

$NVDA Major Put Selling ($6+ Million)...
By: Cheddar Flow | February 27, 2025

• $NVDA MAJOR PUT SELLING ($6M+)

Dropping IV between orders: These whales want to collect premium by next week

*Below/at the Bid*



Read Full Story »»»

DiscoverGold

Ridiculous. I doubt anyone here posting on this board has any "insider knowledge". I don't. I know that.

Good for you. Glad you have insider knowledge like Pelosi and company. Some of us are not that fortunate.

NVDA needs to probably hit $116 one more time at open to satisy the larger market manipulators the Fed, Fidelity, BlackRock and Vanguard...lol

how about if you buy and sell in a retirement account ?
have you ever thought about that  one ?

Liz Clayman on Fox Business did an interview with Jensen on YouTube about 11 minutes, worth your time.
Search Nvidia CEO: Consumer AI adoption is incredibly fast

Pick up NVDL at $45.24 or you can do NVDU at $64.30

$116.68 Lookong for $116.66 the big 3 666s to hit for bottom and may overextend slightly but we finally here 

$117s hitting target is $116 then will look for long play on NVDS

NVDA at $118s like clockwork done shorting NVDA and a bonus if it hits $116. NVDL NVDU will be up next 

NVDS $26.42 Either one works a little less risk on NVDS is obvious. Must hold $25.90 for. Breakout to $28.
That implies NVDA final bottom at $116- $118. 

The wash sale rule does not apply to retirement accounts such as IRAs and 401(k)s. This is because retirement account holders are already getting a tax break on their investments. For example, 401(k) contributions are made with pre-tax dollars, so there’s no need to deduct losses from these accounts on your taxes. 

Now here's a source which goes into the calculations of Nvidia's fair value and not from a source with a dubious past. I suggested one looks up the past of Mkerrill Lynch which BofA owns. Merrill got in a lot of trouble in the past and it seems like they're still playing games. Pumping a stock and selling large volumes at the same time.
Fair value
https://finance.yahoo.com/news/calculating-fair-value-nvidia-corporation-110050265.html