Why NVIDIA Could Run Back to $250


For quite some time, NVIDIA Corporation (NVDA) was one of the most explosive stocks on the market.  And then things fell apart in late 2018, as the stock dropped from $280 to a low of $124.  However, it appears the stock may be turning itself around.

In fact, if NVDA can break above double top resistance at $192, we could see $250 a share.

Analysts at Bank of America agree, saying they are more bullish on NVDA, citing “unrivaled” data center growth prospects, as highlighted by MarketWatch.  Bank of America also reiterated its buy rating on the NVDA stock and lifted its price target to $250 a share.

“[Nvidia’s] data center growth is on the cusp of benefiting from the next-big [artificial intelligence] landmark–the ability to accurately listen, understand, speak and contextualize human speech, referred to as natural language processing (NLP)/conversational AI,” they wrote.

While cloud spending is still weak, game sales are beginning to show signs of recovery.

Plus, second half data center sales could be “muted,” as also mentioned by MarketWatch.  The analysts also see “Nvidia producing ‘the best organic growth’ among large-capitalization semiconductor companies heading into 2020, driven by new ray-tracing-based gaming cycle and first use of high-performance 7 nanometer manufacturing technology.”

NVDA is well worth paying attention to at current prices.  The stock is a buy at current prices.  We have a $250 price target.

Here’s what we still hold, long-term:

AbbVie Inc. (ABBV) stock – $74.55

ABBV January 17, 2020 75 calls – $3.15

ABBV is pushing higher, last trading at $74.78.  We have a target price of $80. 

Pfizer (PFE) stock – $36.05

PFE January 17, 2020 36 calls — $1.60

PFE last traded at $36.70, and is also pushing higher.  We have a $40 target price.

Glu Mobile (GLUU) – $5.46

GLUU now trades at $6.06 and remains on hold. 

Etsy Inc. (ETSY) – $54.76

ETSY December 20, 2019 55 calls – $5.25 – exited half for a win

ETSY now trades at $60.71.  Look to take some wins here shortly.

Metlife (MET) stock – $45.76

MET November 15, 2019 45 calls – $2.52 – exited half 

MET has just started to rebound, last trading above $46.55.  Hold both trades. 

DB Gold Short ETN (DZZ) – $4.96 

We are continuing to hold DZZ as a hedge. 

Intel (INTC) stock – $46.86

Intel now trades at $52.65 a share and remains on hold. 

The VanEck Vectors Rare Earth/Strategic Metals ETF (REMX) — $14.50

REMX is still a buy with China’s rare earth threats still on the table.  REMX is at $12.61.

Devon Energy (DVN) stock – $32.93 

We continue to hold oversold shares of Devon.  It last traded at $21.

Ceragon Networks (CRNT) – $3.90

Boingo Wireless (WIFI) – $32.04

Zayo Group (ZAYO) — $34.42

All are long-term holds as the 5G revolution just begins to pick up momentum.  CRNT now traded at $2.82. WIFI is now at $9.51. ZAYO now trades at $34.  Hold all.

CoreCivic (CXW) stock – $25.25

The GEO Group (GEO) stock – $25.32

CXW is now trading at $15.74.  GEO is now at $15.90.

ETFMG Alternative Harvest ETF (MJ) — $32.30 – exited half

Kush Bottles (KSHB) — $7.85

MedMen Enterprises (MMNFF) — $4.30
Canopy Growth (CGC) — $51.55

Cannabis stocks have pulled back considerably, but all remain on hold at this time.  Earnings hiccups and warnings aside, there is still plenty to be excited about with more U.S. state approvals, Canada’s move to legalize more CBD products this week, and the fact that cannabis legalization could see the light of day from the 2020 presidential election.  Hold.

Pro Shares Ultra Short S&P 500 (SDS) — $45.15

This remains a hedge against the long positions.  It’s now at $28.91.


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