June 10, 2024 3:47 am | 3 minutes reading
20-Year-Old Professional Trader Unveils His “MoneyLine”
Throw away your indicators and use the ‘MoneyLine’. A simple rule tells you when to buy and sell without the guesswork. It’s a line on a chart that has helped Nic Chahine win 83% of his options buys. Here’s how he does it.
Nvidia Corp. (NASDAQ:NVDA) stock has been on a stratospheric rally since early 2023, thanks to its lead in artificial intelligence, and its AI prowess saw the Jensen Huang-led company’s market cap soar past $3 on Wednesday trillion. . Elon Musk was among the first to praise this achievement, even as shares of his flagship company, Tesla, Inc. (NASDAQ:TSLA) pale in comparison to Nvidia’s.
Musk Lavishesh praise: When a Tesla influencer shared a screenshot of Nvidia’s stock performance on Wednesday as it became the second most valued company, Musk expressed his appreciation with a one-word comment: “Wow.”
Also see: Best Artificial Intelligence Stocks
Divergent path: Despite the good rapport between Musk and Huang, from an investor perspective, Nvidia has generated mind-boggling returns since 2023, while Tesla hasn’t exactly been a profitable trade.
Nvidia’s shares are up about 730% since the start of 2023, compared to Tesla’s only 44% gain. The difference is even more striking when you compare year-to-date performance. Nvidia has added 144% this year, while Tesla has lost about 29%.
Source: Benzinga
Why it’s important: Nvidia’s outperformance is a function of the company’s strategic decision to dive headlong into an opportunity that will only grow in coming years. Huang’s visionary leadership set the company on a course of astonishing multi-year growth. Nvidia has gone from humble beginnings as a gaming chip manufacturer to a company that has a monopoly position in the AI accelerator market.
For Tesla, it’s about a series of missteps that got the company into its current situation. Since 2022, the company has seen its volumes shrink due to a slowdown in demand across the industry. To counter the macro-induced demand weakness, the electric vehicle manufacturer opted for the wrong strategy of discounts and price cuts, triggering a price war in the industry. Tesla’s margins continued to shrink. But the company took heat, claiming that it is focusing on perfecting its FSD so that profits from the EV business can be offset by high-margin recurring revenue streams by selling its FSD software.
The fertilization of the FSD software is also important for the rollout of Tesla’s robotaxi project.
Telsa’s argument may not be without merit. But the problem is that an unsupervised FSD will be a long time coming as it needs to gain the trust of users and also convince regulators of its safety and efficacy. Until a clear direction emerges, Tesla shares may continue to languish.
Tesla settled Friday’s session down 0.26% at $177.48 and Nvidia closed at a split-adjusted $120.89, down about 0.1%, according to data from Benzinga Pro.
Read next: Nvidia’s Sovereign AI Push Accelerates Revenue Growth Amid Global Government AI Investments
Image created via photos on Shutterstock
20-Year-Old Professional Trader Unveils His “MoneyLine”
Throw away your indicators and use the ‘MoneyLine’. A simple rule tells you when to buy and sell without the guesswork. It’s a line on a chart that has helped Nic Chahine win 83% of his options buys. Here’s how he does it.
ENTER TO WIN $500 IN STOCK OF CRYPTO
Enter your email and you’ll also receive Benzinga’s Ultimate Morning Update AND a Free $30+ Gift Card!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.