Whether NVIDIA Corporation (NASDAQ:NVDA) is a buy, sell or hold was discussed by David Nelson and Matt McCall in a recent interview on Fox Business Network.
The discussion was prompted by a question made by a viewer of Charles Payne’s program on the network. The viewer asked whether SandRidge Energy Inc. (NYSE:SD), Sierra Wireless, Inc. (USA) (NASDAQ:SWIR), Nuance Communications Inc. (NASDAQ:NUAN) and NVIDIA Corporation (NASDAQ:NVDA) should be bought, held or sold.
Payne said that his recommendation on NVIDIA is to hold. He said they never lived up to the hype for more than a decade but now they are gaining traction.
Payne also said that SandRidge is a hold because it’s starting to be liked by the market, Sierra Wireless is a sell because its execution has gotten “sloppy,” and Nuance Communications is a hold because it’s now living up to the hype.
As for Nelson who is chief strategist for Belpointe, he thinks NVIDIA Corporation (NASDAQ:NVDA) is a sell. He said that something that has not been mentioned and not noticed by most analyst is that the company makes a considerable part of its revenue from royalties. Nelson continued by saying that there is talk that the 30% in revenue they make through royalties will be slashed because of Intel Corporation (NASDAQ:INTC) dropping this product.
However, Penn Financial Group founder Matt McCall disagrees. Saying he loves NVIDIA Corporation (NASDAQ:NVDA) and rates it a buy, he noted that the company makes a new chip called the Tegra K1 which is used in the self-driving automotive space. He said that the Tegra K1 is in 4.5 million cars and the company expects that number to go to 25 million in the next two years.
Watch the discussion below.
NVIDIA Corporation (NASDAQ:NVDA) shareholders includes Cliff Asness’ Aqr Capital Management which reported, by the end of the first quarter of the year, a stake that comprises of about 5.37 million shares. Another shareholder is Jim Simons’ Renaissance Technologies which reported during the same period about 4.46 million shares in the company.