To contrast, AMD has roughly 4x the book value per share that NVDA does, and typically trades at 2x to 3x book value.
Look for earnings run up as a good entry point for a short position.
To clarify, this is a long term short, I believe it may take 1 to 2 years for us to see NVDA trading below HKEX:50 again.
Looking at the weekly MACD it also appears that upward momentum has been slowing down for some time. Combine this with ongoing, and incoming recession pressures and I believe we have an excellent catalyst for shorting NVDA.
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An additional note to this, for folks who cannot short or have the funds the buy puts, given how expensive they may be for NVDA, look to get exposure through an inverted ETF like AMEX:SOXS
Effectively every other chip makes in the world relies on TSM to make their semiconductors.
Obviously this will change in the next 3 to 5 years as Intel and Microsoft expand their business into semiconductor manufacturing, but I think in the next year or two, we are going to see these companies plummet before sky rocketing again.
TSM makes chips for NVDA, which I believe will negatively impact them.
I was also incorrect in thinking that NVDA made their own semiconductors, they do not (nvidia.com/content/dam/en-zz/Solutions/industries/public-sector/govt-affairs/public-sector-pdf-government-affairs-rfi-2589388.pdf).
They are heavily reliant on TSM for semiconductors.
This is also the case for AMD, QCOM, INTC, MSFT, etc.
Effectively every other chip makes in the world relies on TSM to make their semiconductors.
Obviously this will change in the next 3 to 5 years as Intel and Microsoft expand their business into semiconductor manufacturing, but I think in the next year or two, we are going to see these companies plummet before sky rocketing again.