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Nvidia Flushed. AMD Ripped. David Traded Both.

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Jensen Huang is out at Nvidia (NVDA). The stock flushed on the news, and David Prince was ready for it:

For days, David kept the Inner Circle away from Nvidia while the scandal played out. The market was too complacent, he said, and the real opportunity wouldn’t come until the CEO announcement brought max fear.

His levels were mapped out in advance at $153 and $145. When the news hit, he started buying at $153, got bigger near $149, and sold the bounce around $160 for 11 to 12 points. He had no plan to hold it. With Senate hearings and investigations ahead, he expects a cloud over the stock for a long time.

The Other Side of the Trade: Shorting AMD

When money leaves Nvidia, it has to go somewhere, and David figured about 90% of it would rotate into Advanced Micro Devices (AMD). AMD ripped, and he got aggressively short into $574. As Nvidia bounced, AMD gave it all back and briefly went red. That was another 20 points.

What’s Next for Nvidia

David sees NVDA stuck in a $150 to $180 range for a while, with a possible revisit of $150 or $145. If the investigations show sensitive information was actually passed, another wave of max fear could take it to the low $130s.

At next Tuesday’s earnings, as long as guidance holds, the numbers matter less than the story: how deep the bench is, who the next CEO might be, and why the roadmap keeps Nvidia years ahead. It’s still an amazing company trading cheap. With a two- to three-year outlook, David isn’t worried. But if Nvidia is all you think about, consider what it’s costing you in other opportunities.

AMD Is the Dip to Buy

David calls AMD a no-brainer and the dominant beneficiary of Nvidia’s mess:

  • 21-day moving average (~$520): A gift if the stock pulls back this far.
  • 50-day moving average (~$550): The next support level to watch.
  • Low $500s: He doesn’t expect AMD to trade below here anytime soon.

Other chip names that could take market share include Marvell (MRVL), Broadcom (AVGO), Amazon’s Trainium, and Alphabet’s TPUs.

If you want David’s next trade in real time, join the team here.

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