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Nvidia ARM Wrestles U.K., AMD Scores With Google & Trade Desk Decimated

Friday Four Play: The “AnARMchy In The U.K.” Edition

Great Ones, have you checked in on your Nvidia (Nasdaq: NVDA) position lately?

What Nvidia position?

You know, the one I recommended not three weeks ago in Great Stuff’s weekend edition: “What’s The Deal With Nvidia?” I made it an official Great Stuff Picks recommendation too.

See, Peter A.? I give clear investment suggestions when I think they’re warranted. Everything else is up to you. This is a free daily e-zine, after all.

Well … NVDA stock is up nearly 18% since I recommended buying it back on May 29. While the rally proceeded slow and surely higher, NVDA really took off in the past three days.

Why? Because CEO Jensen Huang offered up some rather bullish news at this week’s Six Five Summit and CogX conference.

Specifically, Huang announced that Nvidia plans to invest at least $100 million in a U.K. supercomputer designed to support artificial intelligence (AI) powered health care research.

There are just so many industry buzzwords there that investors couldn’t help themselves. News on any one of those industries alone would’ve sent Nvidia’s shares higher, but all three at once in a nice tidy package? That’s the stuff of dreams.

What’s more, Huang tied this news up with a pretty humanitarian bow:

The U.K. has every reason to be proud of Arm and its achievements and contributions to the world. We have every intention to not only continue that work but invest in doing more of it there…We want to help the U.K. become a center of world-class AI development.

Remember ARM? You know, the leading U.K. semiconductor maker that Nvidia is trying to acquire? The deal that the U.K. government invoked national security interest to investigate?

Yeah, that one. Smooth move there, Nvidia. That borderline humanitarian help just might sway a few regulators here or there.

It certainly swayed at least one Wall Street analyst, with Jefferies’ Mark Lipacis reiterating his buy rating and boosting his NVDA target from $740 to $854 — the highest target on the Street. But it’s not just hardware that has piqued Lipacis’ interest — it’s the potential for Nvidia to license its own software:

While software is mostly embedded within hardware sales today, enterprise AI software in the data center can potentially be licensed similarly to how VMware licenses its system software.

Can you imagine adding software licensing revenue to Nvidia’s already fast-growing hardware portfolio? Son, now you’re cooking with gas.

In fact, NVDA is up more than 7.8% in just the past two days on this week’s news out of the U.K., and more gains are sure to come.

So, keep holding those NVDA shares, Great Stuff Picks readers.

If you didn’t get in back when I recommended the stock … first, shame on you. Second, there’s still time to buy in, you’ll just want to wait for a pullback or consolidation in the shares before buying. In particular, any pullback to $750 would be a solid opportunity.

And now for something completely different! Here’s your Friday Four Play:

No. 1: Get Those Google Greenbacks

Not one to be left out of a good semiconductor rally, Advanced Micro Devices (Nasdaq: AMD) is also in rare form this week.

Yesterday, Google (Nasdaq: GOOGL) announced that it will offer cloud-computing services using AMD’s newest data center chips. The Ex-Do-No-Evil company said that it is rolling out services based on AMD’s “Milan” chipset and that Snap and Twitter were already testing out the new AMD-based offerings.

The news is more proof that AMD is eating Intel’s (Nasdaq: INTC) lunch in the data center market. In fact, Intel’s competing data center chip named “Ice Lake” was announced back in April … but neither Google nor Intel have said when (or if) Google would start offering “Ice Lake” based services.

AMD has rallied nearly 7% following the news. For Great Stuff Picks readers, that means you’re sitting on a gain of more than 190% … if you bought in back when I first recommended it in June 2019.

AMD remains a long-term Great Stuff buy, and if you’re looking to get in and follow along … buy the AMD dips.

Experts Say You’ll Lose Sometimes In The Market … It’s Inevitable

But in the last 12 months, Paul Mampilly has used one strategy to defy the experts. Because of this, he’s 34-to-0.

34 wins in a row, no losses. With a 70% average win — and some big home runs, such as a 492% on CGC in six months. Today, you’ll discover why the next gains are potentially bigger.

Just click here now to get started.

No. 2: Trade Desk’s Multiplicity

Anyone else see Trade Desk (Nasdaq: TTD) plummet 89% yesterday?

No, the company wasn’t hit with a Hindenburg short selling note … or get caught pushing trucks downhill. I know, it’s weird, right?

Actually, TTD underwent a 10-for-1 stock split yesterday. In other words, if you owned one share of TTD on Wednesday, you now have 10 shares of TTD. Math: It’s what’s for breakfast.

So, now … instead of trading near $600, TTD hovers just below $62. That’s a much more accessible price point for regular investors, which is kinda the point of the stock split, to begin with.

Trade Desk, which provides software as a service for digital ad campaigns, has been red-hot this year. With online advertising ramping up as the pandemic winds down, this should come as no surprise. But a $600-plus price can limit a stock’s upside, hence the 10-for-1 split.

Now everyone can afford TTD shares! Woo.

In fact, if you were waiting for the right time to buy into this digital advertising juggernaut, now is probably your best chance — especially with TTD shares succumbing to broad-market weakness today.

No. 3: Piracy On The High Seas

Y’all should know by now that nothing is ever smooth sailing with Carnival (NYSE: CCL).

Cruise lines can hardly keep COVID-19 off their supposedly all-vaccinated sailings … and apparently, their digital security is just as loosey-goosey. Today, Carnival announced that its systems were breached back in March, with hackers accessing both guest and crew data.

Were we not just talking about everything under the sun getting hacked? Meatpackers, oil pipelines … at least this time, it wasn’t a DNA database or something. (Don’t worry, you’ll get that anxious rant tomorrow morning.)

Cruise lines (and their investors) have been antsy all year wondering when sailings can resume and, more importantly, cash can start flowing back toward the beleaguered operators. The sooner the Bahama Mamas start pouring, the sooner the stocks start soaring … or so you’d think, judging by CCL’s rally over the past month.

But data hacks and ransomware attacks decidedly do not fit into those plans for a rosy reopening. No, we didn’t get sick on the cruise … but my credit score dropped 300 points, and I had four new car loans when we docked.

The poor optics have let some of the steam out of CCL’s enthusiasm-propelled rally — the stock dropped roughly 2% on the news. Frankly, it would’ve dropped more if everyone’s cybersecurity fears weren’t overridden by Fed fears today.

To me, I don’t know why anyone’s investing in the cruise lines right now … unless you’re still riding the wave from buying the pandemic dip. (In that case, congrats, I guess. Go get yer Jimmy Buffett on.)

Editor’s Note: The Hidden Tech Behind The Crypto Boom

Cryptocurrencies are on fire, and investors are cashing in fast.

There’s just one problem: This boom is driven mostly by speculation. Any of these coins could collapse tomorrow and wipe out anyone getting in now.

But my colleague has discovered a way to play the crypto boom without the extreme volatility of cryptos. It’s a little-known tech company that makes an obscure type of software that cryptocurrencies depend on to work.

Click here for the full story.

No. 4: A Tonka Tonka Burning Love

Seeing as it’s June, it’s obviously the perfect time to start worrying about the holiday shopping season. And if you had your heart set on a brand-new Tonka truck … let me apologize in advance.

All through the pandemic, toymakers like Hasbro (Nasdaq: HAS) and Mattel (Nasdaq: MAT) have raked in massive revenue from stuck-at-home kids and (kids at heart) looking for anything new to do.

Would you think I’d play this much Uno given a choice to, you know, go outside? Nuh-uh.

But the overload in demand — and the supply imbalance that ensued — has the toy industry already worried about Christmas. Pallets of toys such as Tonka trucks are piling up in warehouses, factory backrooms and wherever else you can jam the suckers.

Toy Consultant Richard Gottlieb says: “At this point, we don’t know how the holidays will be, but we are concerned.” It’s a hot take from someone who talks to toys, but I don’t judge. So, what’s the big Hasbro holdup? Is it that whole inflation, deflation reflation shebang again?

Not quite. Manufacturers simply can’t get a hold of enough shipping containers (or ships) to move their merchandise, such that “containers have been unloaded and refilled with someone else’s stuff who was willing to pay more.”

Between the shipping kerfuffle and the price increases due to product scarcity stateside, both HAS and MAT sank lower to end the week. You tell me: Who’ll be the first to try and get pet rocks to take off again? No supply chain needed there…

And With That … The Weekend!

By the way, thank you to each and every one of you who shared your thoughts with us after yesterday’s edition of Reader Feedback! We do this whole “call-and-reply” thing every week, now, so don’t go thinking you’ve missed your chance to speak up.

Why not drop us a line right here right now for next week’s Reader Feedback? Whether you’ve got a trade in your sights or a rant on your mind, we want to hear it — market-related or otherwise. Give us a shout and share your thoughts!

[email protected] is where you can let your own individual greatness shine. Or … just complain about the times. We get a lot of that too.

In the meantime, here’s where you can find our other junk — erm, I mean where check out some more Greatness:

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Until next time, stay Great!

Joseph Hargett

Editor, Great Stuff

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