If NVDA powers AI, what powers NVDA?

BY ANDREW GIOVINAZZI

November 21, 2024

Yo Pit Crazies,

Picture if you will, a futuristic TV show, like Star Trek where Scotty talks into the computer and asks it questions.

As funny as Star Trek was in the 80s when Scottie talked into a computer mouse, the reality is we will be talking into computers in a short time. Right now those computers will be powered by Nvidia Corp (Ticker: NVDA). NVDA just reported a 93% increase in sales. That is ridiculous. If Joe Biden wasn’t sending anti personal mines to the Ukraine, SPX would be ripping on that news.

What I want to talk about here is what is going to power AI chips? Is it possible energy needs could double or triple in 10 years? Forget about EV cars. Data centers to drive AI could outstrip all.

Joe Biden is saying, “Hold my Beer, it ain’t over yet Washington DC, I got two months left.”

That is where 0 Theta Trades come in. A high conviction trade gives us the credit we need to run the growth side of the trade. We added a new 0 Theta Trade idea Tuesday.

NVDA will need power.

Power comes from oil, natural gas or nuclear in the future

Solar is nice to add on but cannot run the power grid. Energy needs are going to go through the moon. Right now NVDA is the chip game in town but that will grow. Think of how the internet grew. It used to be just Mosaic and search. Almost laughable now how it has grown in the last 30 years.

The conviction trades for Frank and I will be Energy. Energy names will power the upside in our 0 theta arsenal. Hopefully this Ukraine disturbance blows over, it is not certain yet, but energy needs will start to get more serious in time.

Frank and I will be following it every step of the way.

To Your Trading Success,