nVidia - NVDA

I believe kids know more about this company than adults do, nVidia manufactures leading computer graphic technologies. While heavy portion of the computers that exist have their video cards pre-equipped, The biggest group who purchase their retail products are high school students. Don’t get me wrong though, don’t ever underestimate a high school student’s spending power, when I was one of the poorest kid back in high school, i still managed to shovel more than $1000 a year just for video card upgrades just for the newly release PC games that requires higher and higher PC performance.

Reasons why I pick NVDA.

1. The brand, most popular graphic card brand for years
2. nVidia partnered up with Intel against the AMD+ATI combination, and a most recent news indiciated nVidia and Intel has worked out a solution for their next generation chips to co-op perfectly. Keep in mind Intel and nVidia both have the largest market share comparing to the competitions
3. Continuous bad news of AMD for the past couple weeks had been giving Intel a strong boost, but nVidia didn’t raise all that much
4. PE ratio only at 8.3 , there’s no obvious reasons or news bringing the stock down, I believe it is under valued. (Maybe people are being hot headed over Intel, and overlooked this one)

However, I don’t recommend speculating this stock, because its competitor, ATI is also a very good company (now part of AMD) and is catching up.  Bottom line: NVDA still has explosive potential in the long run.

For short term profit, you might look into its options, the following option is the one I’m going to purchase.

UVAHC.X
Call option
Strike price: $15
Last price: $0.15

I do see the possibility of the NVDA going over $15, and if it does, I should be looking at 500%+ ROI. Hey, that’s pennies on a dollor