Bill Baruch joined the CNBC Halftime Report to give his latest moves on NVDA ahead of earnings.
Transcript
Host:
He’s joining us on the phone today. So you’ve trimmed in Nvidia . You’ve also trimmed it by 20%. Right? You also trimmed AMD. But tell me about Nvidia Rao trimming it into the front, when the stock is down. What is it down 8% or so in a couple of days?
Bill Baruch:
Right? You also trimmed AMD. But tell me about Nvidia Rao trimming it into the front, when the stock is down. What is it down 8% or so in a couple of days? It is down 10% from from the high. Yeah, we did trivet yesterday into the close on when it bounced back a little bit. So I was very happy with with the sell price, buddy. You know, again, it has fallen about 10%. So I think some of the air is coming out a little bit, which is which is you know, I think a good thing here. We trimmed it 20%. Yesterday, we also trimmed it 33% of our third ahead of AMVs earnings. So we’ve reduced this and really just monetizing the move that’s happened. I think with the stock was trading above 700, we really needed to see a revenue beat and raise but a revenue beat that was somewhere, you know, in the 5 billion range. Now, you know, just a modest beat on revenue, I think would be a good thing, they would obviously have to raise their guidance, but the stock settling in and if it trades lower, I have some targets to the downside I’m looking at to reenter the position or pick pick more back up.
Host:
You think we get dip buyers pretty quickly if the stock goes lower.
Bill Baruch:
I think there’s some really good technical level to look, I think the long term story has not changed. And you know, it’s going to be I mean, we’re the earlier innings of AI and Nvidia is the leader. One of my fears more than anything is just an unwind. And I’ve talked about this a couple of times you have tremendous call speculation. It’s an easy way for a lot of whether it’s retail or portfolio managers to measure risk by calls. The people selling those calls are market makers, they’re selling calls and then buying stock. If this thing’s not up 15 20% Like it was last May all of that gets unwound, meaning the market makers then sell their stock and the retail or portfolio managers long the calls are now have somewhat worthless calls are massively reduced value of those calls. In such an unwind where the story doesn’t change. I’m looking at maybe a 610 to 620 would be a tremendous place where the consolidated at the late end of January 1 Couple days of February before taking off again. I would love to read to reestablish a stronger position at that level.
Host:
Yeah 610 620 We’ll keep our eyes there. Thank you, Bill Baruch for calling in and giving us the latest on your trade there.