TSM - Nvidia: Despite Red Flags It's Going Much Higher
2024-07-04 05:26:00 ET
Summary
- Nvidia is the dominant chip leader (GPUs), benefiting from massive megatrends (i.e. the great cloud migration and AI). It has massive long-term upside.
- However, there are glaring "red flags" investors need to consider (we share four big ones).
- After reviewing Nvidia's business, growth, market opportunity, valuation, moat, and red flags, we conclude with our strong opinion on investing.
NVIDIA ( NVDA ) is the dominant semiconductor leader, powering explosive megatrend growth in the great cloud migration and now artificial intelligence. And these truly massive megatrends are not coming to an end anytime soon. However, there are multiple glaring “red flags” for Nvidia. In this report, we review the business, growth, market size, current valuation, moat and then four massive red flags investors need to consider. We conclude with our strong opinion on investing.