To The Moon

Bank of America's latest statement is bullish$Nvidia (NVDA) $And other chip stocks, because Bank of America believes that artificial intelligence (AI) chips are the "new currency" and have played a vital role in geopolitical negotiations, and recent large-scale projects in the Middle East have also highlighted the long-term demand for artificial intelligence computing.

Bank of America analysts explained that,Artificial intelligence chips such as graphics processing units (GPUs) have become so important around the world that they are like a currency in geopolitical trade negotiations.

Moreover,Recent mega-deals suggest that demand for AI computing power continues.

In a newly released report, Bank of America estimates that the annual investment in artificial intelligence infrastructure projects jointly launched by Nvidia and American Chaowei and Humain, a newly launched company of the Saudi Public Investment Fund (PIF), will reach 3 billion to 5 billion dollars, and even reach 15 billion to 20 billion dollars in the next few years.

Humain will receive 18,000 cutting-edge Blackwell chips from Nvidia; AMD signed a $10 billion cooperation agreement with Humain to provide 500 megawatts of artificial intelligence computing power for its data centers.

Such "sovereign AI" transactions could represent more than $50 billion in annual revenue among the $450 billion to $500 billion global AI infrastructure market opportunities, according to Bank of America.

"Sovereign AI can also help solve the limited power supply in U.S. data centers," the analyst added.

In the view of Bank of America,Nvidia and AMD are expected to be the biggest winners of Saudi projects.Bank of America reiterated its buy rating on the shares of the two companies and raised their price targets to $160 and $130 from $150 and $120, respectively.

"Despite a more crowded market, we believe these vendors coincide with well-funded long-term AI deployment needs," BofA wrote.

For investors who want to go long on Nvidia after the earnings report, you can consider using sell put options to go long on Nvidia.

Options Strategy: Go Long Nvidia with Put Options

The current Nvidia price is $135, we can sell itExpires June 20, 2025, exercise price 135, premium $740Put Option (Put Option) to go long Nvidia.

This strategy can not only profit when Nvidia rises, but even if Nvidia goes sideways or falls slightly, it can still rely on premium to earn earnings.

Current reference price: US $135/share

Option Type: American Put option (Put)

Expiry date: June 20, 2025

Exercise price: $135

Premium: $740/contract (i.e. $7.40/share)

This strategy sells put options and collects premium first. If the stock price does not fall below the exercise price at expiration, the option will become invalid and the seller will retain premium in full; If the stock price falls below the strike price, the underlying price needs to be bought at $135.

Maximum Profit

Income ceiling = premium received =$740(i.e. $7.40/share). After selling the option, earnings are locked at this amount regardless of how the stock price rises.

Maximum benefit =$740

Break ‑ even Point

Breakeven Price = Strike Price 135 − premium 7.40 =USD 127.60。 When the underlying price equals $127.60 at expiration, your profit or loss is zero; Above that price makes a profit, below that price makes a loss.

This strategy is suitable for investors who are bullish in the medium term and tolerate a certain correction, but they need to reserve enough margin and consider cooperating with stop loss or hedging tools to control risks.