And finally, folks, we have Nvidia. How can we end the day without covering Nvidia news, especially after their announcement of a $150 billion share buyback program? That initially pushed the stock higher, and it closed the day up 1.68%, but note that I have an upward trend line that has effectively blocked all of Nvidia's attempts to rise so far.
NVDA
All takes and content in this window
I thought I was being overly optimistic about Nvidia's stock. I have ranked it as the best stock you can buy this year. I own Nvidia stock in my investment portfolio. It is one of my largest financial centers, and I am preparing to buy more of it.
So, I thought I was one of the most optimistic investors in Nvidia stock. But today, on September 28, Nvidia's management team announced an additional $150 billion share buyback mandate, meaning they will purchase additional Nvidia shares for that amount, in addition to their remaining $85 billion mandate.
Oh, let's leave you with with Nvidia. I am in Nvidia still. Pain in the ass, but I I've learned that I need to sell strength and uh add on a dip. It's still above the moving averages.
It's still hovering here. The buyback is huge. So, we'll see. you know, t you gota in the first few minutes of the day, they tend to push it because, you know, if you want to get a little tip from the red dog, okay, they can't buy back their stock in the first five minutes.
They have to wait five minutes. So, usually around minute of four, there's going to be some volume coming and if people are short get squeezed, there's like a tactical trade there and then they have to buy the VWAP all day and then they can't buy the last 10 minutes.
So, that's why it fades into the close. I was like, why is it fading into the close? Because they can't buy back their own stock into the close. Those are the mechanics. So there's some of the rules.
So you could tactically gain a little bit of the buyback too. Besides long-term it's very good just like Apple was back in the day. Um yeah it it's almost a one top a double top a triple top.
Usually you don't get a quadruple top. Hopefully not. If anything though you know used the prior low. This is 22703. It's above it. It's up 87 cents. I did buy more in the close.
I'll trim some. I'll hold some. And you know it does seem like it's poised. You know what? But if MU is good and and they they give you some visibility, there's not there's not much more that that Jensen could say, you know, but give it a little bit of time and we'll see.
Either way, uh know your time frame. If you're an investor in Nvidia, stay the course. If you're a trader, just know your sizing, entries, and matter. And uh if you make some money, book it. Got to net money.
Nvidia's looks like it wants to I should let me phrase this let me phrase this correctly. Nvidia looks like it wants to break out.
A couple of things struck me about the recent trading and activity in uh Nvidia. So, I'm just going to narrate what I see here. This is a stock that had a massive runup in May when all of its customers, the hyperscalers were reporting not only earnings but forward guidance and their capex plans.
Nvidia just announced a $150 billion stock buyback, and investors need to understand what that really means. This is the largest share repurchase authorization increase in history, and Nvidia plans to continue the program through fiscal 2028.
When a company buys back its stock , it reduces the number of shares outstanding. If profits remain unchanged, earnings per share increase. This can be beneficial for shareholders, especially if the company is buying shares at an attractive price.
The first area is artificial intelligence and semiconductor infrastructure, companies such as Nvidia, Broadcom, AMD, and Arista Networks.
So, are you looking at Nvidia, or AMD? Are these names of interest to you when we look at the very top of the semiconductor industry? But no one will repurchase $150 billion worth of shares like Nvidia, and no one has given us 12-month forecasts like Nvidia has.
So, we know they have a backlog of completed orders, and we expect this growth to continue beyond 2027.
I like Nvidia and I have exposure to these. So, I just want to be clear about that.
Broadcom, Marll, Nvidia, those are still quality and even Photonic beneficiaries.
Nvidia has just made a very big move, and I'm not talking about another AI chip, I'm not talking about a deal with a huge cloud service provider, and I'm not talking about another data center announcement.
Nvidia has just announced an additional $150 billion share buyback program . But here's the part that I think is being overlooked.