What Is the NVIDIA Stock Price Outlook? Prediction Update and Live Trades

TL;DR

NVIDIA’s sharp rise made the trader bullish on its momentum but skeptical of its valuation. He cites a price of $772, a 15% gain, and market capitalization rising from $1.6 trillion to $1.9 trillion while annualized revenue was about $88 billion. He also demonstrates put and call trades using RSI, Fibonacci retracement, stop losses, and a possible retest of the 50. Read on for the full trading rationale.

Transcript

we are live family welcome back it is day trading time one of my favorite times of the day I hope you're doing well letsy nice to see you Fred welcome back number 10 I just put this out it's good let's get these likes up right away man I gotta tell you it's been a wild ride uh got some moves out there I've been making I'm I'm day trading let's just... Read More

Key Insights

• 🥳 The day trader focuses on specific stocks like Nvidia in his day trading activities.
• 💁 Technical indicators like the Fibonacci retracement and RSI inform the trader's decisions.
• 🥳 The day trader questions the high valuation of Nvidia based on its revenue.

Questions & Answers

Q: What is the NVIDIA stock price prediction and outlook?

The trader describes NVIDIA as a major winner and the broader trading day as very bullish. However, he questions whether the valuation makes fundamental sense after the stock reached $772 and the company’s market capitalization rose to $1.9 trillion.

Q: Why does the trader question NVIDIA’s valuation?

He says NVIDIA generated $22 billion in quarterly revenue, which he annualizes to $88 billion. He contrasts that with an approximately $300 billion one-day increase in market capitalization and argues that the gain represented roughly four years of revenue, not profit.

Q: How much did NVIDIA stock rise in the session discussed?

The trader says NVIDIA was up 15% and trading at $772. He also recalls covering the stock when it traded at about $100 per share.

Q: How did NVIDIA’s market capitalization change?

According to the trader, NVIDIA’s market capitalization increased from $1.6 trillion to $1.9 trillion. He characterizes that as an approximately $300 billion rise in one day.

Q: How does the trader use RSI to choose put or call options?

He saw that RSI indicated an overbought condition and used that signal to consider a put option. After the selling pressure eased and the market began moving upward again, he said call options could become the play.

Q: How does Fibonacci retracement guide the trader’s entries?

The trader uses a Fibonacci retracement level to estimate where the market might retest after a run. He expected a pullback toward that marked level before another leg higher, although the price did not reach it during the trade shown.

Q: What happened during the trader’s live put-option trade?

He bought a put after the market moved higher and stalled, expecting a test of the 50. The decline did not reach that level, but he sold part of the position, set a stop loss for the remainder, and says the trade made about $200.

Q: What does the trader say about buying the Rivian dip?

He does not give a definite answer because he says the outcome after such a move is uncertain. He notes that Rivian broke support and the Bollinger Band, while its technical readings had reached what he calls an extreme buy level.

Summary & Key Takeaways

• The content features a day trader discussing his recent trades and observations in the market, focusing on stocks like Nvidia.

• The trader shares his strategy and insights, highlighting plays he made in put and call options.

• He discusses the impressive rise of Nvidia's stock and questions the rationale behind its valuation.

• The trader mentions his perspective on the current market trends and potential future movements.