“Fear is often a trader’s best friend,” we said on April 19.
We added that fear is how some of the most famous investors made their money. Sir John Templeton taught us to buy excessive pessimism. Warren Buffett says that a “climate of fear is your friend when investing; a euphoric world is your enemy.” Even Baron Rothschild once told investors, “The time to buy is when there’s blood in the streets, even if the blood is your own.”
With that, we highlighted opportunity in Nvidia (NVDA) and Advanced Micro Devices (AMD) – both of which we still like at current prices.
So far, since April 19, NVDA ran from about $775 to a current high of $877.35. Even better, RSI, MACD, and Williams’ %R are just starting to pivot higher, and could potentially retest $950.
Even better, analysts at Evercore ISI recently initiated an outperform rating on the stock, with a price target of $1,160. Evercore believes Nvidia’s AI ecosystem play “could capture 80% of the value created during its respective computing era, with the potential to dominate the parallel processing market by 2030, a market that could be worth more than $350 billion,” says Business Insider. Raymond James’ analysts also raised their price target on NVDA to $1,100 with a strong buy rating.
Advanced Micro Devices ran from about $150 to a current high of $157.40. It’s also just starting to pivot from over-extensions on RSI, MACD, and Williams’ %R. From its last traded price of $157.40, we’d like to see it retest $180 next.
Again, we still like both as fear gives way to opportunity.
