Nvidia $NVDA is my largest position and also the best performing one. I've been selling it between $304 and $260 and haven't bought any back and plan to buy at around $180.
I'm a buy and hold investor and most of my gains have come from long term positions in stocks such as NVDA, ADBE, AAPL, PYPL and GOOG, to name a few. Having said that, I did take profits when valuations got stretched, PYPL and ADBE are two cases where I've got rid of 80% of my holdings because future growth looked subdued compared to their earnings and sales multiples.
In Nvidia's case this is an important indication that growth may decline some in the next few quarters, after torrid growth in the last two years.
https://ih.advfn.com/stock-market/NASDAQ/nvidia-NVDA/stock-news/87795157/nvidia-amd-lead-chip-decline-as-truist-finds-hard
However, I still think NVDA's long term growth story in datacenter, autos and metaverse is largely intact and then some, but in the current market environment where inflation and high interest rates are going to drive multiples down – it would be more prudent to enter only after there is enough margin of safety. At a price of $180, NVDA's 2025 fiscal year forward PE's and P/S ratios come down to 20 and 9, respectively. Those are attractive valuations and I'd add more than what I've sold. At $150 I would back up the truck.
Leave a Reply