From The Motley Fool: 2024-06-11 04:05:00

In a surprising move, Nvidia conducted a 10-for-1 stock split, causing its share price to drop by roughly 90%. Despite this, the company’s fundamentals remain strong, with demand for its chips soaring and prospects for future growth promising.

While it may seem like a great time to buy Nvidia stock post-split due to the lower share price, some argue that the optimal buying opportunity may have already passed. The stock’s high valuation metrics and potential challenges from competitors and customers developing custom chips raise concerns about future growth.

For investors hesitant about Nvidia’s growth prospects, adopting the “Pelosi strategy” of buying deep-in-the-money call options could provide a lower-risk way to profit from the stock’s potential upside. This approach allows investors to leverage Nvidia’s performance while requiring less capital upfront than buying shares outright.



Read more at The Motley Fool: Is It Too Late to Buy Nvidia After Its Stock Split?