In a post on TheStreet Pro, Wall Street veteran trader Guilfoyle used Sickles' actions at the pivotal Civil War battle to illustrate his investment strategy for AI-chip-making brontosaurus Nvidia (NVDA) .
Don't forget, Guilfoyle is the same guy who cited heavy metal icons AC/DC in a writeup about Palantir Technologies (PLTR) a few weeks back. So pay attention.
Nvidia CEO Jensen Huang was all over the news on Jan. 7 when he gave the opening keynote address at the CES 2025 trade show in Las Vegas.
Guilfoyle said Huang unveiled "a number of new products and exciting high-end technologies as well putting together some collaborative deals with both established corporations like Toyota Motor (TM) and Uber Technologies (UBER) as well as upstarts such as Aurora Innovation (AUR) and Arbe Robotics (ARBE) ."
Nvidia, the second most valuable company in the world after Apple (AAPL) , said Toyota would use its Orin chips and automotive operating system to power advanced driver assistance in several models.
Nvidia CEO Jensen Huang delivers the keynote address at the Consumer Electronics Show in Las Vegas on Jan. 6, 2025. (Photo: Patrick T. Fallon/AFP via Getty Images)PATRICK T. FALLON/Getty Images
Analyst cites Nvidia deal with Uber
"Of course, CEO Jensen Huang, who I love to refer to as ‘The Fonz’ due to his permanently worn leather jacket and his cool ability to upsell, led the way at the center of attention," Guilfoyle said.
Now, before we get into the history lesson, let's see what investment firms have been saying about Nvidia's recent announcements.
Ride-sharing company Uber (UBER) will partner with Nvidia to speed the development of AI-powered vehicles.
Analysts at Bank of America Securities said in a note on Uber that the collaboration would pair Uber's dataset of millions of daily trips with Nvidia's new Cosmos platform and Nvidia DGX Cloud.
Cosmos is Nvidia's new generative AI platform. It focuses on “physical AI systems,” creating synthetic environments and eliminating cost barriers to developing advanced robotics.
“In our view, Uber will likely commit significant resources given importance to the business,” said B of A, reiterating its buy rating and $96 price target on Uber.
DA Davidson affirmed a neutral rating and $135 price target on Nvidia.
The firm said on Jan. 8 that several of the tech giant's announcements at CES bode well for its presence in many AI categories that go beyond its current success in the data center. However, DA Davidson also said 2025 would be a peak year as its largest customers moderate spending into 2026.
DA Davidson added that Nvidia shares reacted poorly to the company's CES presentation's lack of a material update on Blackwell shipments or the next generation of data center products.
Shares of quantum computing companies such as Rigetti Computing (RGTI) , D-Wave Quantum (QBTS) and IonQ (IONQ) also tumbled after Huang's comments at CES, the investment firm noted. Huang said truly useful quantum computers might be 20 years away.
Citi analysts said that during its 2025 CES special address, Nvidia further laid out its hybrid AI platform, which will use the company's graphics processing units in the cloud to run the largest language models.
After meeting with management at the event, formerly known as the Consumer Electronics Show, the firm maintained a buy rating on the shares with a $175 price target.
The investment firm said management expects Blackwell to outperform the prior guidance by a couple of billion dollars.
Citi said Nvidia also confirmed Hopper and Blackwell combined will grow in the January quarter and believes the growth is sustainable.
Management mentioned four major trends, including the company benefiting from what is likely the tail end of the $2 trillion traditional computing market as it believes most workloads will eventually be accelerated, the investment firm said.
Veteran trader lays bare Nvidia stock price target
Citi pointed out that Nvidia believes quantum computing is good at small data problems such as cryptography and not necessarily the large data problems AI currently addresses.
This, in a (very) roundabout way, brings us back to Dan Sickles, Stephen Guilfoyle, and the importance of sticking to one's objectives.
Last week, Guilfoyle said that ahead of CES, he planned to put on a short-term long-side trade in Nvidia that would be outside of his longer-term position. At the time, Nvidia was trading at $139.90.
His plan worked. On Tuesday morning, Nvidia traded up to $153, providing a quick exit point and profit for those who followed it. However, a reversal quickly followed, and those who didn't stick to the plan may have left money on the table.
Guilfoyle, whose career began on the New York Stock Exchange floor in the 1980s, believes sticking to a plan is crucial.
He invoked Sickles's decision to deviate from Union plans at Gettysburg to hammer the point home.
"Sickles saw clear ground ahead of his position and ordered his troops to move out and take that ground despite the fact that the 3rd Corps would become detached from the rest of the army on Cemetery Ridge to the north and Little Round Top to the south," wrote Guilfoyle.
"What Sickles had done was offer an undersized Confederate Army an opportunity, and they darned near rolled up the whole of the Army of the Potomac on that second day of that battle."
If not for the willing sacrifice of the 1st Minnesota Infantry and the stand made to the south by the 20th Maine Infantry, "General Robert E. Lee might never have made the blunder on day three at Gettysburg (Pickett's charge) that the Confederacy really never recovered from," the veteran trader said.
"That's what not sticking to a plan does," Guilfoyle added. His point? When you have a plan, stick to it.
What does Guilfoyle think could happen to Nvidia stock now? Previously, he'd written that Nvidia had to retake the 50-day simple moving average [SMA] and establish itself above $153 “to feel good about a $161 target.”
Now, the big question is whether Nvidia's stock price can remain above the 50-day moving average or not. If it doesn't, it could mean Nvidia shares tumble.
“The shares did manage a quick kiss at $153 but certainly did not establish themselves,” he said. “Now, the worry is the loss of the 50-day SMA, as that will force portfolio managers to reduce long-side exposure.”
If the stock cedes the 50-day SMA — indicating a possible shift in market sentiment — "then a target price below $110 would not be ridiculous," Guilfoyle said.
