Investing with options: Nvidia - 3 long term scenarios
In the ever-evolving world of technology, Nvidia stands as a titan, its influence extending not only to AI-related stocks but also the entire US technology sector. As Nvidia prepares to report its earnings results on Tuesday after the US market close, the anticipation is palpable. Analysts and investors remain bullish on the outlook, yet recent developments from Microsoft and Tencent suggest a potential dip in demand in the medium term. Microsoft is forging ahead with its own purpose-built AI chips, expected to be delivered as early as next year, and Tencent’s recent acquisition of a significant inventory of AI chips from Nvidia hints at a possible frontloading of demand.
Related article: Earnings preview Is the Intel moment coming for Nvidia
Against this backdrop, it becomes crucial to explore the potential trajectories that Nvidia could follow in the long term. In this article, we will delve into three such scenarios, each accompanied by a distinct options strategy. These strategies, designed for use over an extended timeframe, will provide investors with a comprehensive toolkit to navigate the potential twists and turns in Nvidia’s journey. Stay tuned as we unpack these scenarios and strategies, using the insights from the referenced article as our starting point. Let’s embark on this exciting exploration of Nvidia’s future.