Now I'm 2nd guessing my investment in them earlier this week...buy the dip... Seems like Intel's DIP is still far away from over....
Intel's massive market cap loss was based on piss poor quarterly results and worse, poor guidance for the near term.
Buying on a dip makes sense when there are signals that a turnaround is probable. There is nothing in Intel's statements or general industry sentiment that indicates any sort of near term reversal for Intel.
Buying on Nvidia's dip makes far more sense. They are minting money and their guidance is pretty strong. If you understand Nvidia's business, you'll know that Fortune 500 companies buying AI accelerators don't just send a junior IT staffer to Best Buy to pick up some cards. These projects come out of an annual budget and generally require many months to reach full operational status. It's not like buying a new keyboard and plugging it into your PC.
There is nothing about Intel that says they are going to right the ship anytime soon. The fact that Client Computing is still their biggest business is also another harbinger. This is not a business that grows by leaps and bounds.
By contrast, Nvidia's Datacenter business, a couple of years ago was neck-and-neck with their Gaming business. The latter has grown modestly but their Datacenter business exploded, it's now about 5-6x larger than Gaming.
Moreover, there are plenty of other signs that are probably reasonable predictors of Nvidia's short term prospects. TSMC has indicated strong July shipments. There are other chip technology firms (packaging for one) that have announced exceptional revenue and indicated strong guidance. Nvidia's products aren't just a die from a wafer, there's a lot of other stuff around it. And when partners like SuperMicro also offer strong guidance, that's another data point.
Investors need to look at the big picture if they want better performance from their portfolio.
