Nvidia Stock Split Explained: Is It Time to Buy? - podcast episode cover

Nvidia Stock Split Explained: Is It Time to Buy?

Jun 17, 202413 min
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Episode description

In this clip of Market Mondays, your hosts Rashad Bilal, Troy Millings, and Ian Dunlap dive deep into one of the most anticipated stock events of the year – the Nvidia stock split. Nvidia, now the second-largest company by market cap, has had a lot of buzz surrounding it. With its stock price significantly dropping from $1200 to approximately $123 after the split, the big question on everyone's mind is – should you go all in?


We kick things off with Rashad Bilal detailing the official stock split and its impact on Nvidia's market cap status. What does it mean now that the chaos of the pre-split hype is over? Should investors be more confident about getting in, or is there another strategy to consider?


Ian Dunlap offers his expert advice, sharing a specific price point of $107.77 as a strategic buying target. He emphasizes Nvidia’s enormous growth potential, hinting that by 2026, Nvidia could surpass Microsoft in free cash flow. Ian breaks down why he believes Nvidia is one of the greatest publicly traded companies, highlighting their impressive profit margins and multi-trillion-dollar market cap.


Troy Millings joins in with intriguing insights from various articles and reports, underscoring Nvidia's operating cash flow and the potential for continued growth. He shares a vivid analogy to illustrate Nvidia's dominance, comparing their essential chips to the motors of a revolutionary engine that's driving the AI movement. Moreover, Troy brings Intel into the discussion, raising important questions about its role and future in the semiconductor space.


The conversation shifts to options trading strategies, where Troy explains his approach to stacking calls and maximizing returns at different thresholds. His Nvidia options strategy has yielded an impressive 1900% gain, and he breaks down how this systematic stacking works.


Lastly, the episode also hints at another stock worth watching – Crowdstrike. Troy touches on this company briefly but promises an in-depth discussion and analysis in his upcoming options class.


This detailed analysis is a must-watch for both seasoned investors and newcomers looking to understand the dynamics of Nvidia's stock split and its implications for the future. Whether you're into long-term investing or active trading, this episode provides valuable insights that can help shape your strategy.


*Don't forget to like, comment, and subscribe for more financial insights and stock market tips!*


*#MarketMondays #Nvidia #StockSplit #Investing #StockMarket #Finance #OptionsTrading #TechStocks #AIRevolution #Intel #Crowdstrike #FinancialFreedom #InvestingStrategies #TradingTips #StockAnalysis*



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Transcript

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Speaker 3

The moment you've all been waiting for in video in Vidia has split officially and now its new stock price is around one hundred and twenty three dollars, which was a far cry from the twelve hundred dollars last week. It was going crazy. So right now it's split. It's done. We've been talking about this for weeks. Now it's officially split. It's at one hundred and twenty three ish dollars now, right the second largest company in the world as far as market cap. So now the question is what at

what price point? Should investors considered buying a video and what do we think now that all of the chaos of that situation is over? Should they go all in on in videos?

Speaker 4

Now?

Speaker 3

The time they go all in now that the split has occurred. So yeah, what's the deal with that?

Speaker 5

I think in Video is one of the greatest companies that we've ever seen that is publicly traded. Like you said, second biggest market cap. They're closing on Microsoft. I'm going to share an interest in stat here in the second.

Speaker 1

I think that bro.

Speaker 5

Okay price that I like to get in is one oh seven seventy seven, so one hundred and seven dollars and seventy seven cent as well, I like it. If you are in stock Club, you go to ininvest dot com. I will also give you the swing trading price and load the boat price for where it could go.

Speaker 4

If I made you money. Please put yes in chet.

Speaker 5

The interesting thing that I see about in Video people should go all in. They're currently number two, but by twenty twenty six they should have more free cash flow than Microsoft.

Speaker 1

That was it when I saw that, said we that yep, yep, yep.

Speaker 4

So for those of you who don't know, just the bag is bigger at in video.

Speaker 5

They're still getting forty five to forty eight percent profit margin, and they are a multi trillion dollar company. And you can argue that the chips are under price for what their market is willing to pay for them. So this company's gonna keep growing. I didn't like him signing old girl's breast at the conference. You was in your Kodak drink bag to get back.

Speaker 4

To and your kids work at your company.

Speaker 5

How you explaining to your mom and your kids you signed up some girl titties at a conference.

Speaker 4

Maybe I do it and invest that's gotta do it. May yes and chat.

Speaker 5

I got you, baby, But I think this company is going to do incredibly well for the next I don't know, six seven years. I love this company almost as much as Apple. If I made you money from Apple and Microsoft and Crystal Ball, Shine and Bright, people canna say whatever the fuck they want you online, But when it comes to these results, boy, it is what it is. So yeah one O seven seventy seven, and I made

a believe out. A few people said shut out to my couple of my NFL guys who was unsure at first, and now you're real sure, let me get my testimony and my check please please one O seven seven seven.

Speaker 4

That's why I like it.

Speaker 2

We read the same exact article when I saw it twent and I think we've spoken about this a lot, and we talk about the companies that have the largest operating cash flow, and we know emerging positions is one of those things that you can do with having that type of capital. Buying backstock is one of the things you can do. But most importantly is paying off debt.

And so when we look at the debt and we look at the balance sheets, it's like, well, they're gonna We always say Apple because the treasure chess is just ridiculous.

Speaker 1

They're not They're not in the Apple level yet.

Speaker 2

As far as operation, yes, they have passed them as far as market cap, but to pass and when we're talking about what does that number look like right now there are forty billion in operating cash flow, I think next year the projection is like sixty seven yea, and by the end of twenty five it's like eighty.

Speaker 4

Seven eighty nine, which is it's.

Speaker 1

What passed Microsoft.

Speaker 2

And so it's crazy to think about this, but the growth potential, they're actually making more money than they're spending right, we can see that, right, their profit margins are.

Speaker 1

Coming in faster than the revenue yep.

Speaker 2

Which is like this is like when you say the greatest, this might be the greatest company that.

Speaker 4

Is on track too.

Speaker 5

To give a comparison, this would be like if one company from nineteen twenty three now had to get their motor from one company. Yeah, yeah, you got some other places you can get it from, but this is the motor. Like if there was like a V sixteen B twenty four V forty eight engine, great, and they're going off the shelves and without their chips, there is no AI revolution. No, it's so dominant, but that the chips is, but the data centers as well yep.

Speaker 1

And I was I was having this.

Speaker 2

Conversation with a scientist in the field, and I was like, you know, just just this, I feel like there's.

Speaker 1

Something that's happening.

Speaker 2

Like every time we speak about Semi's Intel gets brought up, and it's just like, why is Intel keep getting brought up? So I'm watching this kift. I think everybody should as well. That's the reason I'm bringing it up is that when I looked at the chips act and I see Intel and amount of money that they would give, and that's interesting to me. And so I'm trying to like, yes, it's an American company, and we want to see American companies do well. And then I thought to myself, like

what separates it. Obviously they're outdated. They can't compete at the same level when it comes to the efficiency of how to produce a product. But what they do do is they manufacture them their own chips, which in video and we spoke about last week doesn't So I'm thinking myself, why are they pushing Intel so hard? Like it's like a dinosaur brand, right, it's a legacy brand, but it's American and the manufacturer the goal is to keep everything here.

If a video is leading in data centers, right and they don't manufacture, at some point, do you think do you think Stenson's like, you know what, what's the last piece that we don't have?

Speaker 1

Bring it all in the house, Like what's the last piece? Right?

Speaker 2

And if you do that, that's it. Man, We're talking We're talking four five T because you really don't need a TSA at the same level right now. You become the person that could potentially supply if he's thinking at that left. I don't know that he is, but it makes me wonder why they keep talking about Intel, And I think that's the reason. Is this constant Hey, they manufacture, it's American made. They manufacture their own. So keep it eye on that.

Speaker 5

Market cap of Intel's one hundred and ten billion profit margin three point one percent. Partnership is needed or they will die. Oh boy on YouTube? While you ready to admit I was writing about Intel yet?

Speaker 4

Or no? Just humbling home boy?

Speaker 1

So boy, yeah you in video?

Speaker 3

Okay? So you you've done a lot of video options, right?

Speaker 1

Yeah? Yeah? Yeah? Sacked them? I stacked them?

Speaker 3

What does that mean?

Speaker 1

So every time I got it right?

Speaker 2

So I had the two five four that expires on the twenty first of this month. But as it crossed certain thresholds, right, I'm up one hundred and twenty two hundred three hundred. I think at this point this is probably the highest percentage I've ever gained on an obstacle. I think I'm at like nineteen hundred percent, which is ridiculous.

On the two O five it passes four hundred. Now I'm looking at coals inside the four hundred, So I get a four hundred call that goes I think we're both in there, right.

Speaker 1

You see how he's just like calmly sugar his.

Speaker 2

Head right, smart, that passes a threshold of seven hundred. Well, now I'm looking at eight hundred calls, right, that goes up one hundred, two hundred percent.

Speaker 1

Well, now I'm looking at the thousand dollar call.

Speaker 2

Because I'm watching the every time i'm taking into information, I'm hearing new announcements. I'm watching all these analysts have their margins and their price pockets increase. I want to know why and if they're increasing, and it's unanimous that they're increasing. I well, I've already made profit all the way up, all the way up. So now I'm just

stacking my calls. I'm stacking my calls, right, So if I lose percentage, yeah, you lose, but the percentage, like I said, nineteen hundred percent, even if I fall down one hundred percent, like you're still happy with eighteen hundred, right, you could. And so I've already the winds already built in. So now I'm just stacking the cal stacking the call. I might have a new stack coming, uh and I'll

probably talk about it this week. But that's what I've been doing, just stacking the col stacking the call, and as it as the stock rises, I obviously have shares as well, so that's when it's a complete stack. I own shares of the company, but I also have call on the company as well. And so when you if you look inside your portfolio and you press company, everything will come up in alphabetical order, and I'll see my video shares boom, and I'll see every call that I

have in the video. And so to me, that's how I'm looking at as a stack.

Speaker 4

So you have to invest in this trade the same ones that you're investing in.

Speaker 1

Yeah, yea, yeah, as well.

Speaker 3

Your options class this Thursday. Yes, you're going to be talking about in video.

Speaker 2

We're gonna be talking about in video, but almost equally is important.

Speaker 1

We're gonna be.

Speaker 2

Talking about a company that I said two weeks ago here on market Mondays that we were being to look at how to we're going to report?

Speaker 1

I said it last week, and then inside of.

Speaker 2

The community, I said, look, I'm looking at this call and the company's name is CrowdStrike.

Speaker 1

If you look at CrowdStrike.

Speaker 2

Today, this thing almost positioned itself perfectly and I'm gonna tell you exactly how we looked at it some of the research, but that was a key factor.

Speaker 1

That I didn't let everybody know that. I'll talk about this week.

Speaker 2

CrowdStrike hit US all time high today trading at iron three eighty.

Speaker 1

So the call that we were in is now up and we can do this.

Speaker 2

I'll tell you what it's what it got up to, how we were now a call that we made last week is now up two hundred and thirty three percent.

Speaker 1

So I want to pat myself on the back.

Speaker 6

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