Nvidia and SK Hynix team up on chip shortage — ride the AI hardware boom
Thesis
A prolonged chip shortage means companies making the chips can charge more and have guaranteed demand, which is great for their stock prices. Nvidia and SK Hynix are teaming up to address this bottleneck, which signals to the market that they are aggressively capturing future revenue. Combined with a fresh analyst forecast reset from Bank of America after talking to Nvidia's CFO, Wall Street will likely bid these stocks up as confidence in their growth returns.
Strategy approach
Build a long strategy for NVDA on the daily timeframe. Enter when the stock is within 3% of its 10-day low and the 14-day RSI crosses above 45. Also enter long on SK Hynix (000660.KS) if KOSPI opens higher and the stock gaps up more than 1%. Set a 15% profit target and a 6% stop loss for both, holding for up to 30 trading days.