March 13th 2023 Free Analysis - Nvidia

Hey MPA Investors!

Wow, week 9 of the MPA newsletter and I’m loving hearing how much you guys enjoy it. And honestly I enjoy writing them. I feel like it’s a chill conversation between friends about investing. That’s said, let’s jump right in:

THIS WEEKS' MOVERS SNAPSHOT

Nvidia(Stock Ticker: NVDA) - Nvidia is a tech company that makes graphic chips. You may have seen their logo on pc’s. They also create components used in AI and self-driving cars.

Why NVDA?

Nvidia’s products are considered semiconductors. And since semiconductors are used in so many of the technologies we use everyday, the industry grows along with technology. In other words, the demand for semiconductors is expected to continue to grow. From 2016 till today the industry has grown about 59%. Nvidia is a leader in the graphic chips industry making it well positioned to ride the semiconductor wave. The industry is expected to more than double by 2030.

Why we feel there’s a buying opportunity:

1. In the last 6 months Nvidia is up +$84.60 (58.32%). We expect it to end the year at around $300.       a. Credit Suisse Group expects $275      b. Bank of America targets $275      c. Wells Fargo & Company also thinks $275

CURRENT PRICE (as of this email):  $230.36

TERMS YOU NEED TO KNOW

Alpha-  Alpha refers to the expected return on investment compared to an index. So for instance if you expect the S&P 500 to increase by 10% and you expect the stock you invested in to increase 20%. The Alpha is 10%. Alpha is used to measure active investments, not passive investments. Because the goal is to outperform the market with your investment.

See you on Thursday!Thibaud & PhilipInteresting Financial Facts:  Hedge-fund managers are often seen as geniuses when it comes to investing. But did you know that hedge-fund managers overall underperformed over the past ten years. Not just compared to the market but also compared to inflation. Because no matter how smart you are, no one knows the future for certain. So the most balanced and least aggressive approaches tend to perform best. When looking at these stocks make sure you have a good balance of different stocks in your pocket and don't go all in on one bet. 

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk. Even keeping your money in the bank comes with risk. The risk isn’t very high for keeping your money in the bank, but there’s still a risk.  Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation.  So it’s important to understand the different levels of risks that come with investing of all kinds. We would not recommend investing in individual stocks as a retirement plan. If you’re interested in investing in stocks for other reasons, the analysis we give you could help. But we have to be clear, these are NOT recommendations, this is analysis.  We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.