To The Moon

🚀 Chase High of Broadcom or Buy the Dip on Nvidia?

Broadcom’s latest earnings were nothing short of spectacular 💥. The company crushed Wall Street expectations, sending shares to fresh all-time highs. Yet seasoned investors know the history here: in the past five earnings reports, whenever Broadcom spiked on earnings day, the stock often cooled off for at least two months. When it dropped on earnings day, however, the opposite happened—shares rallied strongly in the months ahead.

With shares up 6% after hours, the key question now is whether Broadcom can sustain this momentum, or if institutions will quietly use this rally to offload positions. Meanwhile, all eyes are on Nvidia, the market’s most critical player in AI and data centers.

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🌐 Why Nvidia Is So Critical to AI, Data Centers, and EVs

Nvidia is no longer “just a GPU company.” Its chips have become the brains of the modern digital economy.

• Data Centers 🏢: Nvidia’s GPUs dominate AI workloads, powering LLMs (like ChatGPT) and next-gen cloud computing. Without Nvidia’s CUDA software ecosystem and hardware accelerators, the current AI revolution would simply not be possible.

• AI Everywhere 🤖: From generative AI models to healthcare simulations, Nvidia has built the most complete ecosystem. Competitors like AMD and Intel lag far behind in both hardware and software adoption.

• EVs 🚗⚡: Even Tesla and other EV makers can’t avoid Nvidia. Its DRIVE platform is embedded into autonomous systems, infotainment, and AI decision-making.

This trifecta—AI + Data Centers + EVs—makes Nvidia the single most unavoidable name in technology. Institutions know it, which is why they continue accumulating shares despite Here’s the updated deep-dive, now with corrected figures, richer technical analysis, yesterday’s unusual volume highlighted, and your Options Puppy strategy fully integrated:

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Chase High of Broadcom or Buy the Dip on Nvidia? A Deeper Dive with TA & Volume

1. Market Overview & Earnings Dynamics

Broadcom (AVGO)

• Performance Snapshot: Following a strong Q3 earnings beat, Broadcom shares spiked in after-hours trading, reaching highs near $320—a notable advance from its closing price near $306     .

• Earnings Highlights:

• Revenue: $15.95B vs. ~$15.8B forecast   .

• EPS: $1.69, beating estimates of ~$1.66   .

• AI revenue surged 63% YoY, hitting $5.2B in Q3 and projected to climb to $6.2B in Q4   .

• Guidance for Q4 revenue: $17.4B, versus expectations near $17B   .

• Notably, Broadcom secured a massive $10B AI chip order from a new customer   .

• Historical Post-Earnings Movement:

• Typical day-one movement is around +2.5%, though some quarters hit ~±6%   .

• Seasonality and historically sharp post-spike cool-downs suggest caution in the short term  .

Nvidia (NVDA)

• Stock Overview: NVDA is trading around $171.66 with intraday volume of ~141M shares .

• Technical Spotlight: The stock is consolidating just below the key resistance of $182, forming a tight “coil”—a sign of paused momentum before a potential breakout. Key support lies near $170 .

• Volume Insights: A recent spike in volume (~243M shares) accompanied a 3.3% intraday drop, likely due to algorithmic or institutional profit-taking—not sector-wide weakness .

• Market Positioning: Despite the dip, Nvidia retains its dominance in GPU sales, especially in AI workloads (as per Jon Peddie Research)  .

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2. Technical Analysis Summary

Stock Key Levels & Patterns

Broadcom - Resistance: ~$320 (earnings spike) - Support: ~$300–$305 - RSI: likely overbought; caution for immediate pullback

Nvidia - Resistance: ~$182 (coil breakout) - Support: ~$170 - Volume: consolidation with volume tapering, recent spike suggests selling pressure

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3. My Strategy: Cushioning Upside with Discipline

For Nvidia

• Dollar-Cost Averaging (DCA): I systematically build my position to smooth out volatility and avoid concentration risk in a high-beta stock like NVDA.

• LEAP Covered Calls: Once I hit 100 shares, I plan to sell long-dated calls at nearly 2× my cost basis—a move that allows me to earn premiums while retaining long-term upside.

For Broadcom

• Given the sharp earnings move and risk of near-term pullback, I’m more cautious. Historically, these after-earnings surges can give way to sharp corrections.

Risk Management Philosophy

• I lean on Singapore government bonds for a stable income base.

• I layer on options strategies (both covered calls and cash-secured puts), aligning with my “Options Puppy” journey—blending stable core holdings with income generation.

• My approach follows disciplined capital allocation, living within means, and a clear separation of needs vs wants—making the portfolio resilient in both volatile and calm markets.

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4. Final Take

• Broadcom: Strong earnings and AI tailwinds make it attractive, but historic trends suggest a near-term pause is likely.

• Nvidia: The long-term narrative remains powerful—AI/data center demand continues to grow, supported by bullish technical setups. DCA with LEAP calls offers a balanced play between growth and capped income.

• Tactical Stance: If you’re deploying capital now, leaning into Nvidia with a structured approach makes sense. Broadcom might be better suited for later re-entry after potential consolidation.

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Would you like me to add a compact visual roadmap—like arrows showing Tesla-style breakout zone for Nvidia at $182 and pullback zone for Broadcom at $300? It’d be great for your visual-savvy audience!

@TigerClub @MillionaireTiger @Daily_Discussion @Wrtd