Nvidia: From DeepSeek To Trade War, Loading Up At $100 Before Q4 (Upgrade)

(8min)

Summary

  • Nvidia Corporation's recent stock dip is driven by the DeepSeek saga and tariff concerns, but these risks are overstated.
  • The Jevons paradox and CUDA software ensure Nvidia's growth and moat in the AI industry remain strong.
  • Tariff impacts are likely manageable, with Nvidia able to pass costs to customers, minimizing margin effects.
  • With a favorable valuation and technical indicators, buying Nvidia around $90-$100 ahead of Q4 earnings is a strategic move.
  • This idea was discussed in more depth with members of my private investing community, The Pragmatic Investor. Learn More »

USA against China Trade War and Sanctions

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Thesis Summary

Nvidia Corporation (NASDAQ:NVDA) has been hard hit by the DeepSeek (DEEPSEEK) saga and will also be affected by the recently announced tariff increases.

Investors are questioning Nvidia’s growth story, moat and even profitability, just ahead of Q4 earnings.

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This article was written by

22.56K Followers

James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.

The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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