Jensen Huang Just Unlocked a $TRILLION Play in China
In a Nutshell
Jensen Huang's China trip secured US approval for Nvidia's H200 chip sales to 10 firms, potentially adding $10-20B in annual revenue amid strong fundamentals ($216B revenue, $5.69T market cap) and high earnings expectations on May 20th. Nvidia is overbought (RSI 75 on 4H chart) at $235 all-time highs, ideal for traders riding momentum but risky for long-term investors seeking better entry points. Speaker holds a breakeven Marvel short, eyes Oscar short potential, and warns against leverage in irrational markets.
These notes were generated by AI and may contain inaccuracies.
Jensen Huang, CEO of Nvidia, is a major winner from the China trip involving CEOs like Elon Musk, Tim Cook, and himself with Trump. This was a significant trip amid US-China competition. Nvidia faced regulatory issues preventing direct chip sales to China, but optimism paid off with a rally yesterday due to hopes of a deal.
Exclusive US clearance for H200 chip sales (Nvidia's second most powerful chip) to 10 China firms as Nvidia CEO seeks breakthrough. This progress supports rising price targets for Nvidia.
Nvidia generates $216 billion in annual revenue, with a $5.69 trillion market cap, the first company to surpass $5.5 trillion. P/E ratio is not incredibly high. Produces significant revenue with great margins, unlike companies with razor-thin margins or losses.
High demand for Nvidia; it talks the talk and walks the walk. Hasn't reported earnings yet, scheduled for May 20th, with high expectations. Must deliver fully to sustain elevated levels; disappointment could cause issues. Unlikely to disappoint, but possible.
Selling to 10 China firms could add $10-20 billion in annual revenue. More revenue means more profit and value for investors.
Nvidia not a good deal at current elevated levels in short term. At core of AI revolution, attracting massive attention. Great for traders: direction, momentum, fundamentals, news align. For investors, not the best bang for buck at $235 all-time highs. Speaker invested below $100 per share. Can go higher short-term, especially if earnings blow out.
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