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๐ Insider time: the king of chips aims for the starsโ
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Tomorrow we are waiting for the quarterly report, which is important for Nvidia's future dynamics, after which the US corporate reporting season can be considered closed. If this report is not positive enough, the US stock market will be hit again.โ
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Nvidia became the biggest beneficiary of the AI race, finally overtook Alphabet and entered Top 3 ranking most expensive companies in the US. The corporation now controls about 80% of the chip market. After Nvidia shares rose in price 3 times in 2023, since the beginning of this year, the price has added another 47%.โ
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The U.S. ban on the supply of new Nvidia chips to China was supposed to reduce the company's profit in Q4 and negatively adjust the forecast for Q1 2024. But Nvidia knows how to surprise - new chips for shipments to China have already been agreed, and demand in India is expected to offset the loss of profits from shipments to China. One more important point: production of the new B100 chip can start already in Q2. And "opaque" schemes with "crediting" Nvidia branded chips to some unofficial Chinese developments are not cancelled either. โ
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After the report is published, it would be logical for the stock market to turn downward at least for a while, but if the report lives up to the forecasts, the rally will first continue short-term, and closing gains will be a second but very strong reaction. This scenario usually lasts a few days. โ
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Negative options are not popular at all at the moment, but we will still designate the $500-550 zone as the first target for a pullback to the downside. In the optimistic scenario, we are looking for the first target in the $900-920 zone, but more serious arguments are needed to storm the magic level of $1000. In any case, if you have open positions on Nvidia (NASDAQ: NVDA), we recommend to strengthen StopLoss control.โ
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Profits to yโall!โ