[US Stocks] Why does NVIDIA keep hitting new highs? [Explained by a pro]
The stock price has risen from $175.78 to $329.85, a 'plus 88%' increase♪
If there are any brothers out there who saw the blog and are doing the 'new high breakout trade' then congratulations ♪
(Added on November 1, 2021)
I'm your sharp-tongued sister who does stocks and FX♪(▶Twitter)
After working as a fund manager (I'm a former institutional investor), I now live independently as a stock investor ♪
Read the links to my past market predictions here ♪ (◀I've been almost 100% accurate for over 40 companies in a row ♪)
<This week's recommended articles>
◯[Blog featured stock] Phil Company has doubled! [Stock investment]
◯[Stock FX] S&P 500 investment method [Explained by a pro]
◯[Stock FX] A pro's view on cryptocurrency
[US Stocks] Why does NVIDIA keep hitting new highs? [Explained by a pro]
NVIDIA is a semiconductor manufacturer located in 'California, USA' ♪ They have world-class sales, especially in 'graphics boards (= internal parts that enhance PC video display)' ♪
I bet many of you brothers who own gaming PCs or have video editing as a hobby are indebted to this company's graphics boards, right?
Today, I'm writing about this company in accordance with my ''individual stock investment policy'', so be sure to read it ♪
Why does NVIDIA keep hitting new highs?
Actually, the calculation function of NVIDIA's 'graphics boards' is also applied to 'cryptocurrency mining' ♪
Because of this, sales of graphics boards have grown rapidly, and NVIDIA's stock price is rising even further ♪
'California Gold Rush'—have you ever heard of that history?
In 1848, after 'gold' was discovered in California, USA, 300,000 people and companies from all over the country gathered to dig for gold, eager to be the first to excavate (= mining) ♪
Who do you think made the most money at that time?
The gold miners made a little money, but the ones who made dozens of times more were 'the people who sold the tools to dig for gold' ♪
NVIDIA is a company that sells tools used for cryptocurrency mining, and since they have further increased their sales, it's very similar to the situation above ♪
'The story of how only the tool sellers made a fortune during the Gold Rush' is often told as a business joke, but I think it's actually 'knowledge that cannot be overlooked in stock investment' ♪
I think it's knowledge that has the 'power to multiply your assets several times in one shot' if you invest in 'tool seller' stocks the next time a similar situation arises ♪
However, since noticing a situation similar to a gold rush early on involves an element of luck, I have summarized a method that doesn't rely on luck in "Company Analysis Method That Hit a 15x Stock Price on BASE"♪
NVIDIA's Current Situation
Here is the stock price chart for the past 5 years♪
The stock price has been trending upward ever since it was listed, and it is still hitting new highs today♪
Therefore, for day trading, as per "“How to Ride the Wave of an Upward Trend”,
and for swing trading, as per "“New High Breakout Trading”, if you carefully select your entry points and position management, you can escape as quickly as possible during a downturn while also making it easier to lock in large profits♪
Fundamental Analysis
( ▼Click to enlarge the image♪ )
Performance is trending upward, and it is particularly characterized by "a high profit-to-sales ratio♪ This profit margin is comparable to "Kakaku.com" even though the industry is different♪ Also, while I focused on explaining the gold rush this time, NVIDIA has also achieved results in other fields like AI♪ However, be aware that the "
PER/PBR is extremely overvalued".
<Would my sharp-tongued little sister invest?> Day trading ▶ ◯ "
Hold only during intraday upward trends" Swing trading ▶ As per "
New High Breakout Trading", it is ◯ only when you have an "entry point" and are "prepared to sell and escape at any time"; otherwise, it is ✕. Long-term investment ▶ ✕ because it is "extremely overvalued
". Mainly for short-term use like day trading.
Was this helpful this time too? If it was, please read the ▼ below as well♪
<For first-time blog visitors: Investment Methods>
◯ [Stock/FX] Summary of articles you must read [Super Important]
<For those who don't have time to study stocks/FX>
◯ How to create a winning system trade [Big profits even for beginners]
<US Stocks/American Stocks Articles>
○[US Stocks] Is Coinbase, currently in a crash, a buy? [Explained by a Pro]
○ [Stocks/FX] Buffett sells all Wells Fargo shares [Bank Stocks]
○ [Buffett Stock] VERIZON COMMUNICATIONS [US Stocks]
Let's keep doing our best together♪
＿＿
※Notes
○ Explanations are for reference only. (Sometimes I might be wrong)
Please make final decisions at your own risk.
○ Please read "this link" before sending questions♪
If your question is selected, it might lead to an addendum or a new article. Sorry if it doesn't get selected♪
○ Please read "here" for detailed notes♪
○ Keywords for this blog: Stock investment, day trading, swing trading, long-term investment, investment methods, featured stocks, Japanese stocks, US stocks, high dividends, growth stocks, undervalued stocks, growth stocks, value stocks, FX, foreign exchange, Nikkei Stock Average, technical analysis, fundamental analysis, Nikkei 225 futures, NY Dow, bubble, company analysis, financial results