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$NVIDIA(NVDA)$ revenue growth or is it short term hype? The reality is NVIDIA has a jet engine under the hood. Tech giants are literally throwing billions of dollars at them just to get a spot on the waiting list for the next chip line.
When $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ (which acts like NVIDIA on a triple shot espresso) jumps 7.71% it is easy to get dizzy.
The Bull Case: Nvidia's CFO recently guided for 70% revenue growth into the next fiscal year. This is driven by Blackwell & Rubin architectures. Total infrastructure spending is projected to scale into the trillions over the coming years. Nvidia's P/E ratio is at a reasonable 28x, it can catch up to its aggressive price targets.
The Bear Case: Expecting a stock trading in the mid USD220s to reach USD 400 by next year requires a massive expansion of its trading multiples. If the Fed keeps interest rates high, this may stall.
The upward wave is restarting but it will not be smooth.
@TigerStars
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