Key Points:

• Wall St. remains bullish after the pullback
• AMD signaled ongoing strength in data centers
• Nancy Pelosi goes long while shorts exit
• Discover the three stocks that could be The Next Nvidia

Nvidia (Nasdaq: NVDA) continues to defy bears, shorts, and skeptics. Even after a sharp pull back, shares still trade up 140% year to date, and over 2,700% in the last five years

Today Nvidia spiked higher, trading up as much as 11%. Here are a few key reasons why:

Wall Street Says Go

Morgan Stanley analyst Joseph Moore stated that the recent drop in shares ‘presents a good entry point’ for investors. Far from calling the bottom, they still see todays price as a rare opportunity to scoop up shares on a relative discount. The bank maintains a $144 price target on the stock, a full 21% higher than where shares are after today’s surge. Further, Moore added the stock to the top pick list for private clients.

AMD Says Go

AMD (Nasdaq: AMD) released earnings last night, smashing expectations on the back of robust data center sales. The appetite for compute continues to exceed all expectations here. On a YoY basis earnings increased 19%, while sales grew 9%. Data centers jumped an incredible 115% year over year to $2.83 billion. What’s more, the company forecast sales higher. The market is seeing this as a sign that Nvidia, whose chips are very much the leader in this space, will do even better.

Pelosi Says Go

Everyone’s favorite Nvidia trader, Nancy Pelosi, just bought another $1.3m of Nvidia, and sold over $2m (5,000 shares) of Microsoft (Nasdaq: MSFT)  Access her full disclosure here.

BREAKING🚨: Pelosi is back and buying more Nvidia $NVDA

She just bought another $1.3M of $NVDA

She's now bought ~$2.5M of Nvidia this month alone

In the filing she also sold $2.2M of Microsoft $MSFT pic.twitter.com/6eAIUvTlSf

— Nancy Pelosi Stock Tracker ♟ (@PelosiTracker_) July 31, 2024

As we’ve reported, Pelosi has minted millions on shares of Nvidia and has been more right than wrong on the stock. Here are some guesses at her next AI stock play.

Shorts Say No

Nvidia may be one of the most painful companies to be short the last few years. While well shy of the double digit short interest  Nvidia saw between 2015 – 2017 the company, short interest has been rising steadily through this year as shares have rallied. At the start of 2024 short interest stood at 1%, and at early June it had spiked nearly 30% to 1.3% of shares outstanding. With the recent pull back shorts are clearly taking money off the table to avoid a total blowout on a rally like today.

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