CNBC Pro readers flocked to the site this week to read several stories about Nvidia and other ways to take advantage of the stock’s sharp rise. A little-known core stock also caught the attention of subscribers. The hottest Pro story of the week is “Sell Nvidia or hang on? Here’s what investors are saying,” in which several investors discuss what they’re doing with their Nvidia stock holdings. Vahan Janjigian, chief investment officer at Greenwich Wealth Management, said he has reduced his investment in the stock. “I’m a little nervous because I do think the stock is overvalued, especially when you look at it from a price-to-sales perspective. It sells for about 35 times sales, which is comparable to some other tech companies. Ratio, this number is very high,” he said. Nvidia’s GTC conference may decide the fate of top artificial intelligence games in the coming week. We’ve got a complete guide to the conference, dubbed “AI Woodstock” by Bank of America, here. “We believe the key takeaways from this week will be a clear vision for NVIDIA to sell out by 2024, a clear product cycle to support another year of growth in 2025 (B100, etc.), and a vibrant ecosystem that can take advantage of the challenges we face. Huge opportunity to monetize. Approaching tipping point for generative artificial intelligence,” Cantor Fitzgerald analyst CJ Muse wrote in a note. The event starts on Monday. Other stocks likely to rise in response to the Nvidia conference in the coming week include Advanced Micro Devices, Broadcom and Oracle. It’s not just fundamental investors who are worried about Nvidia, but chart analysts as well. How to Trade Nvidia In Monday’s column, Fairlead Strategies founder Katie Stockton gives a guide on how to trade “parabolic” stocks like Nvidia and Meta. “Overall, the 20-day moving average (MA) helps gauge short-term momentum. It is especially useful in helping us stay on the right side of a steep uptrend,” Stockton wrote. “Quite simply, when the 20-day EMA points higher, as is currently the case with NVDA and META, it supports holding existing exposure.” You can read more here. Alternatives to Nvidia Another top-performing Pro story this week was David Keller’s story about a potential breakout from Square parent company Block. Such a deal could be beneficial to investors looking to diversify a bit from Nvidia. “A quick review of Block’s weekly chart shows a clear inverted head-and-shoulders bottom pattern, represented by the October 2023 low, surrounded by the May 2023 and January 2024 lows,” Keller wrote. Higher lows.” Fund manager Stephanie Niven said another alternative to Nvidia is KLA. KLAC 1Y mountain KLA Corp. 1 year The company is “leaning toward artificial intelligence supply chains,” Niven said. “This is a business that decarbonizes the AI transformation because it reduces errors and increases throughput.” You can read more here. What’s certain about this week’s low-key conference call is that it’s not just about Nvidia. Bank of America piqued reader interest by raising its price target on Vistra. Vistra is a little-known core stock that could capitalize on the energy needs of artificial intelligence data centers. VST YTD mountain Vistra, YTD “Projected data center growth is positive for incumbent generators as higher realized power prices/margins lead to further upside,” Bank of America said. Read the full story here.
