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Nvidia Earnings: Stock Rallies As AI Giant Reports 600% Profit Explosion, 10-For-1 Stock Split

Rossco EZ

Member
Is the stock split to encourage future investing or make it easier per say? I imagine it’s better if someone was going to invest seeing shares at 100-200 a share vs 1k a share at the moment.
 

old-parts

Member
87% of their revenue came from data centre (AI) pretty much everything else is now just small change to them, they wont be leaving the gaming industry any time soon but if this keeps up in long term it could change the company's direction.
 
There are no gains if you aint selling at one point. There is a possibility of a bigger recession coming in the next few years which would hit the whole stock market, so be ready to sell at one point.
I do plan to sell (not yet), so I can focus on a passive income strategy.

$NVDA is great for raw gains, but it's not exactly known for earnings per share.
 

StreetsofBeige

Gold Member
Is the stock split to encourage future investing or make it easier per say? I imagine it’s better if someone was going to invest seeing shares at 100-200 a share vs 1k a share at the moment.
That's the psychological effect. Also, pending the mutual fund, some funds dont touch stock with high $$$ price, even though it;s really rhe same thing between a $1000 stock going up $50, or a $100 stock going up $5.
 

LordOfChaos

Member
Should've listened to Zoltar



3 trillion market cap if they remake Nalu in 4K HDR ray tracing

nvidia_nalu_wp_by_deviantnoisemaker_duwk80-fullview.jpg
 

Rossco EZ

Member
not sure if thats the intent but yeah it works like that.

Good thing i sold all mine last week FML lol
I thought so and haha, hoping you made a good profit when you sold at least?

I was thinking about investing in stocks recently, just ended up going with a global all cap index fund. Hopefully it does alright for me in the future 🤞


That's the psychological effect. Also, pending the mutual fund, some funds dont touch stock with high $$$ price, even though it;s really rhe same thing between a $1000 stock going up $50, or a $100 stock going up $5.
I see, so if I had one share now with current value at 1k the 10 - 1 split will give 10 shares at 100?
 
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StreetsofBeige

Gold Member
Insane. I bought NVIDIA and AMD when they were at $220 and $78 per share, respectively, because I saw how much gamers were willing to pay for graphics cards and thought they were undervalued. Turns out my reasoning for their upturn was way off, but I'll take it!
You still holding all your NVDA/AMD shares?

I remember eyeballing AMD shares at $2 like 10 years ago. Didnt bother. Damn.
 

Sentenza

Member
Not buying Nvidia stock years ago was my biggest mistake in life
This (but mostly because I had no money to invest back then, not because I'm surprised they are doing well) and thinking bitcoin was useless bullshit when home mining started doing the rounds.

Well, the latter is still true. It's VERY PROFITABLE useless bullshit, though.
 
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StreetsofBeige

Gold Member
I do plan to sell (not yet), so I can focus on a passive income strategy.

$NVDA is great for raw gains, but it's not exactly known for earnings per share.
Yup. A perfect world, everyone would make giant gains on tech till they die.

More risk averse strategy (crossing fingers), make gains on tech and volatile shit and then funnel gains to 4-8% yield kind of stuff like energy, utility company and bank stocks. And hope commodity prices hold and no stupid financial crisis events! Hope this boring shit all goes up 5%/yr in stock price, so net gain is maybe 10%.
 
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hollams

Gold Member
I'm blessed. When the stock went from 300->500 I sold 45% of my shares which covered my initial investment. From that sale I bought some WBD stock and that was a dumb move.
 

dorkimoe

Member
I thought so and haha, hoping you made a good profit when you sold at least?

I was thinking about investing in stocks recently, just ended up going with a global all cap index fund. Hopefully it does alright for me in the future 🤞



I see, so if I had one share now with current value at 1k the 10 - 1 split will give 10 shares at 100?
Only a few dollars, i really dont like doing a single stock. I did an index fund as well- VOO
 

BennyBlanco

aka IMurRIVAL69
Yes. Nintendo aren't married to or dependent on Nvidia. They don't give a shit about performance, only price. If Nvidia is too expensive, they'll take their money elsewhere, and Nvidia loses out on console market share.

And Nintendo loses out on BC
 

Mortisfacio

Member
I have no idea when to sell this stock. I bought in 2015 and it just keeps going. Every time I think "this is it, get out" it just keeps going.
 

StreetsofBeige

Gold Member
What happens if you buy 1 share today
You get 10 on split day in June. But the price of the stock also divides by 10. So it's a wash.

But typically on the day the stock price adjusts for a split, stocks often go up as people come barging in. This assumes it's a split due to good reasons. And not a company doing a reverse split. When companies do that it often means they are struggling and need to do that to prop the price up so it satisfies stock market exchange listing requirements (ie. a stock has to have a minimum price of $1). So a penny stock at 40 cents may do a 1-10 reverse split to make it $4.00. When that happens, the stock seems to often go down as people bail. Reverse splits are generally bad news IMO. It's also called Consolidation.
 
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dorkimoe

Member
You get 10 on split day in June. But the price of the stock also divides by 10. So it's a wash.

But typically on the day the stock price adjusts for a split, stocks often go up as people come barging in. This assumes it's a split due to good reasons. And not a company doing a reverse split. When companies do that it often means they are struggling and need to do that to prop the price up so it satisfies stock market exchange listing requirements (ie. a stock has to have a minimum price of $1). So a penny stock at 40 cents may do a 1-10 reverse split to make it $4.00. When that happens, the stock seems to often go down as people bail.
thanks. yeah fuck that. I am tired of chasing this shit. I sold last week for not much at all, im just going to stick to the funds that include nvidia. I just checked and the 3 mutual/index funds im in have about 5% nvidia. thats good enough for me long term
 

StreetsofBeige

Gold Member
thanks. yeah fuck that. I am tired of chasing this shit. I sold last week for not much at all, im just going to stick to the funds that include nvidia. I just checked and the 3 mutual/index funds im in have about 5% nvidia. thats good enough for me long term
I hate chasing stuff too, but I took the plunge. Aside from NVDA I think the highest priced stick I ever bought was SUNW (the old Sun Micro with Scott McNealy in charge) during the dot.com phase. I scraped up some money and bought shares at $130 US and Cisco at $37 I think. I think I broke even. It rose then sunk into the toilet. I think I made money on these, but lost it back on other stuff. I think I lost it back on AMAT. Cisco, SUNW, Oracle and AMAT were the 4 horsemen. I think I bought AMAT at $97 and got nailed selling for about $70.

Aside from NVDA SUNW, I dont think I've ever bought a stock at $100 US or CDN.... AMAT was close.
 
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LordOfChaos

Member
Nvidia removed all their tech demos that had women in them, a few years ago.
So don't expect them to release any remake, or even any new tech demo with sexy women.

Yet they let this sexy beast stay? Hypocrisy



(holy crap I remember this looking so much better lol)
 

kiphalfton

Member
Way too late. But I finally got on a few months ago.

Hindsight 20/20, but I should had bought in MU too way back. I was eyeballing it at $60-70 for a while. I might jump on that too soon.

You still holding all your NVDA/AMD shares?

I remember eyeballing AMD shares at $2 like 10 years ago. Didnt bother. Damn.

I just sit on stuff. Can be good (micron and Nvidia) can be bad (GameStop).

Missed the boat offloading GameStop last week, when it was at its 2-3 year high, as I couldn't figure out my password until it was too late. That one hurt.
 

SyberWolf

Member
i am holding 1 share :messenger_tears_of_joy: was still nice to see it rocket up in afterhours.
What happens if you buy 1 share today
it will turn into 10 shares if you buy before 6 or 7 june.

people are raising price target to 1200-1400 insane lol
 
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LordOfChaos

Member
i am holding 1 share :messenger_tears_of_joy: was still nice to see it rocket up in afterhours.

it will turn into 10 shares if you buy before 6 or 7 june.

people are raising price target to 1200-1400 insane lol

Around 1200 it becomes the most valuable public company on earth, and I do believe it will get there
 

SyberWolf

Member
Around 1200 it becomes the most valuable public company on earth, and I do believe it will get there
i think it would too, but i dont know if it will be able to hit it before the split.
i think it will rally after the split though.
a lot of people will be buying after the split.
 
I have no idea when to sell this stock. I bought in 2015 and it just keeps going. Every time I think "this is it, get out" it just keeps going.
"Our favorite holding period is forever"

- Warren Buffett

Just as a point of reference, my very first NVDA shares were from 2012

I still have that particular block of shares, it's a small one but I like looking at it
 
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StreetsofBeige

Gold Member
On one hand, if all this AI chip stuff keeps selling like hot cakes, NVDA shares can technically be undervalued based on today's $1050 it's at now. But that assumes it can keep chugging.

Latest earnings were $6/share. 3 months ago it was a huge $11.

For sake of argument, let's say EPS ramps up to $30-40/share at some point FY. Based on $1050, that's a PE of roughly 30 assuming the stock price sticks at $1050, which for a tech company still growing 30 PE is totally doable.

As of now, NVDA has $17 TTM earnings for a PE of 60.

Who knows. If this stock hits $1300-1400, I might bail. Take my winnings and move on to another tech stock.
 
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MikeM

Member
On one hand, if all this AI chip stuff keeps selling like hot cakes, NVDA shares can technically be undervalued based on today's $1050 it's at now. But that assumes it can keep chugging.

Latest earnings were $6/share. 3 months ago it was a huge $11.

For sake of argument, let's say EPS ramps up to $30-40/share at some point FY. Based on $1050, that's a PE of roughly 30 assuming the stock price sticks at $1050, which for a tech company still growing 30 PE is totally doable.

As of now, NVDA has $17 TTM earnings for a PE of 60.

Who knows. If this stock hits $1300-1400, I might bail. Take my winnings and move on to another tech stock.
That stock split might make the stock appetizing to retail investors as well. I’m sitting on the sidelines unfortunately as i’m invested in the canadian bank sector with earnings later this month.
 

StreetsofBeige

Gold Member
"Our favorite holding period is forever"

- Warren Buffett

Just as a point of reference, my very first NVDA shares were from 2012

I still have that particular block of shares, it's a small one but I like looking at it
You got shares from 2012?

Split adjusted, it looks like your buy price is about $5!
 

LordOfChaos

Member
On one hand, if all this AI chip stuff keeps selling like hot cakes, NVDA shares can technically be undervalued based on today's $1050 it's at now. But that assumes it can keep chugging.

Latest earnings were $6/share. 3 months ago it was a huge $11.

For sake of argument, let's say EPS ramps up to $30-40/share at some point FY. Based on $1050, that's a PE of roughly 30 assuming the stock price sticks at $1050, which for a tech company still growing 30 PE is totally doable.

As of now, NVDA has $17 TTM earnings for a PE of 60.

Who knows. If this stock hits $1300-1400, I might bail. Take my winnings and move on to another tech stock.

Yes, the crazy thing about this is it's actually not expensive on Price to Earnings Growth, and it's already within spitting distance from most valuable stock on earth

That said I'm aware of the bullwhip effect and anything less than perfect growth could see a sharp repricing
 
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StreetsofBeige

Gold Member
That stock split might make the stock appetizing to retail investors as well. I’m sitting on the sidelines unfortunately as i’m invested in the canadian bank sector with earnings later this month.
I got a batch of BNS and POW which I go in and out of for years. Always make money on it. Not big gains, but yield of 5-6% plus if I'm lucky get a couple bucks on the share price gain too.
 

StreetsofBeige

Gold Member
Yes, the crazy thing about this is it's actually not expensive on Price to Earnings Growth, and it's already within spitting distance from most valuable stock on earth

That said I'm aware of the bullwhip effect and anything less than perfect growth could see a sharp repricing
I dont even know much about the whole NVDA AI craze, but jumped on the train hoping to get lucky gains. But googling it, heres an old article from Aug 2023 talking about their H100 chips. Googling it more they got H200 chips too and whatever other stuff coming out. They both have a price of $25,000-40,000/chip.


However, I dont know anything about competing chips which may fuck up NVDA's strive for AI chip dominance. You never know. All it takes is another big chip tech company to come along and sell a good chip too for cheap and NVDA growth strategy goes down the tubes.
 

LordOfChaos

Member
However, I dont know anything about competing chips which may fuck up NVDA's strive for AI chip dominance. You never know. All it takes is another big chip tech company to come along and sell a good chip too for cheap and NVDA growth strategy goes down the tubes.

AMD's training computers (I guess we really can't call these behemoths just "chips") are nearly 1/4th the cost at 10-15000 vs 35,000, yet it's Nvidia that still has the quasi infinite demand. It's nuts. Because of the CUDA platform's stickiness and everyone of substance racing to catch up in AI, there's just no playing around and not buying Nvidia if you're serious.

Long term AMD and Intel will certainly play more, but Nvidia is sold out through NEXT year and this is for H100s when they already announced the improved B100
 
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Fess

Member
Stepped out, 5090 upgrade secured! (not really)
Will go in again at the split with a smaller sum. Big posts are not good for your health!
 

MikeM

Member
I got a batch of BNS and POW which I go in and out of for years. Always make money on it. Not big gains, but yield of 5-6% plus if I'm lucky get a couple bucks on the share price gain too.
BNS is exactly what i’m holding right now. Waiting for an interest rate cut and those earnings at the end of the month before planning next moves.

I always take 3-5% and get out. Small wins over time add up plus the odd dividend. I just got out of ENB recently.
 
On one hand, if all this AI chip stuff keeps selling like hot cakes, NVDA shares can technically be undervalued based on today's $1050 it's at now. But that assumes it can keep chugging.

Latest earnings were $6/share. 3 months ago it was a huge $11.

For sake of argument, let's say EPS ramps up to $30-40/share at some point FY. Based on $1050, that's a PE of roughly 30 assuming the stock price sticks at $1050, which for a tech company still growing 30 PE is totally doable.

As of now, NVDA has $17 TTM earnings for a PE of 60.

Who knows. If this stock hits $1300-1400, I might bail. Take my winnings and move on to another tech stock.
In a general sense, valuation using a trailing PE is kind of useless for a growth company. NVDA forward PE is like 38-40 which is absurdly low for a company which is growing like this. I do expect then to keep pumping into the split because that's just what happens with growth companies that have a split coming up.

If I were to sell some of my stake, it would be right after the split when the hype is the highest, but I could play it safe and sell CC's against my position instead to generate cash without having to give up any shares at the moment. We'll see.
 

StreetsofBeige

Gold Member
Came down from the intra day high but still ended up +$88 (+9%).

A ton of analysts upped their targets about $200. Most now have a target of $1200 - 1400. Make sure to have the Key Events button toggled and check out the yellow dots.


U38DHGc.jpeg
 
Came down from the intra day high but still ended up +$88 (+9%).

A ton of analysts upped their targets about $200. Most now have a target of $1200 - 1400. Make sure to have the Key Events button toggled and check out the yellow dots.


U38DHGc.jpeg
You love to see it. The split will probably lead to another jump, too
 
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