So far this year, NVIDIA Corp. (NVDA) has seen its market capitalization eroded by nearly half. While the phase of long queues outside stores is over, the company is focused on innovation and the Street continues to view the stock favorably with a Strong Buy consensus rating and an average price target of $254.37, which implies a massive 57.98% potential upside.
NVDA’s recent unveiling of the Quantum Optimized Device Architecture (QODA) aims to enable progress in quantum research and development and underscores its focus on innovation. Moreover, its new products—the H100 and Grace Superchips—promise to keep the company on a growth path in this notoriously cyclical industry.
The Pelosi Angle on NVDA
For retail investors, there is no dearth of experts and pundits to follow on Wall Street. However, in the case of NVDA, House Speaker Nancy Pelosi is the newest pundit to follow for anyone interested.
Senators are set to vote on a bill (the CHIPS Act) to earmark $52 billion to bolster local semiconductor production and provide tax credits for it. House Speaker Nancy Pelosi’s husband, Paul, exercised NVDA stock options worth millions ahead of the vote (on June 17).
According to the Daily Caller News Foundation, there is also an app to exclusively track Paul Pelosi’s trading maneuvers, so users of the app can follow suit!
While these options had an exercise price of $100, NVDA shares are now at the $160 level, which means the Pelosis are sitting on substantial gains. Upon the passage of the bill, these results would possibly be magnified.
Edward Snowden too commented on the development via a tweet, “Ordinary Americans are hurting, but it looks like congress is doing just fine.”
Meanwhile, the House Speaker has commented in the past that “the U.S. is a free market economy and lawmakers should also be able to take a part in it.”
Hedge Funds Are Bullish about NVDA
Besides Pelosis, hedge funds are also positive on NVDA. TipRanks data indicates hedge funds have lapped up 1.4 million NVDA shares in the last quarter. Significantly, Ray Dalio’s Bridgewater Associates has doubled down on the stock with a holding worth $16.35 million.
Closing Note
In the meantime, as the vote draws closer, NVDA has seen its shares tick upwards from $142.7 on July 7 to $162.42 in yesterday’s pre-market session. Additionally, the stock has a robust 41.95% return on equity and 46.81% assets growth over the past 12 months which despite market gyrations remain key positives for the stock.
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