Nvidia | NVDA | A lot of potential in several sectors

While we do often prefer to approach global / us domestic equity markets with a more broad based / index level ETF/ETN short/mid term (pre GER trading strat), occasionally we do come up with some single equities with tremendous upside potential. Example? Nvidia.

As gaming / technology enthusiasts we at Evolution Consulting first associated Nvdia with high end gaming graphics cards for high end / custom built machines. While that is correct, Nvidia does make a majority of the higher performance gaming level graphics components (hardware) for both desktop and mobile devices, something else caught our eye about Nvdia.

Evolution 4.0 discovered that the trend towards autonomous (self driving) vehicles continues, so does the potential for Nvidia to become a truly integral part of the design and refinement of that entire line of technology. A little known fact is that in nearly all domestic and even military level endeavors into the self driving vehicle market, there have been Nvidia chipsets, boards, and other components involved. In fact, even in many conventional vehicles, Nvidia is the lone producer of the chipsets responsible for some of the more recognizable in-vehicle nav/control displays.

As organizations such as Google, Apple, and others move forward with exploration into the self driving, terrain recognition ability of vehicles, it stands to reason the demand for Nvdia chipsets and proprietary technology will only increase. Increase to the point that we have put a buy zone upon the first pull back on their stock at anywhere between the 31.50 to 33.00 range. We predicate that buy zone upon a number of factors, not the least of which is an overall up-trending, liquidity fueled (inflation fueled) market, as well as the likelihood of major news stories pertaining to Nvdia technology becoming more and more common.

Something else that we noticed (a bit of overflow from our Apple-Google M&A analysis) is that the autonomous robot / robotics market is another sector that can (and is) benefitting tremendously from Nvidia technology. In other words, Nvidia checks all the boxes for “companies with tremendous longer term potential” (even post GER). Those boxes are: Proprietary technology with multiple tech forward applications, practicality of said applications, amount of room for additional product line (existing) development (fueled by practical tech application)

In terms of a short term trade, look for NVDA to get significant updraft not only from said aforementioned factors, but also as the “VR Virtual Reality” (Occulus RIFT and others) trend continues, look for them to become more noteworthy in conjunction with that product sphere also.

In fact, given the VR trend that is now “news-making” material, we would also encourage those with a longer time frame or with a higher “risk exposure profile” to consider current levels of the 34-35 dollar range (it is showing signs of technical breakout) as a potential entry point. Based upon Evolution 4.0 analysis, the demand for NVDA is going to be shown in quarterly earnings reports sooner rather than later. Remember, regardless of fundamentals, until the GER we are “crowd trading”. That is to say that any time a trade lines up with both fundamental economic principles, as well as the “hot news story” narrative, we usually take a second and third look.

Note also, we do make these equity reccos based upon the often repetitive notion of turning paper, into more paper, and then into physically good delivered metals. We do encourage our readers to not avert speculative markets, but prior to the GER (Global Economic Reset), use the natural forces of the market to help create additional paper wealth in which to then secure ones purchasing power with prior to the GER (vis a vis phys-gold / phys-silver).