How to trade Nvidia and alternatives to the AI juggernaut

CNBC Pro readers flocked this week to several stories on Nvidia and other ways to play the stock’s monstrous rally. A little-known nuclear stock also caught the attention of subscribers. The top Pro story this week was ” Sell Nvidia or stick with it? Here’s what investors say ” in which several investors discuss what they’re doing with their Nvidia holdings. Vahan Janjigian, chief investment officer at U.S.-based Greenwich Wealth Management, said he’s pared down his exposure to the stock. “I got a little nervous because I do think the stock is overvalued, especially when you look at it on a price to sales basis. It’s selling for about 35 times sales, which is very high compared to some of the other technology companies,” he said. Nvidia’s GTC conference could determine the top AI play’s fate in the coming week. We’ve got a complete guide on the conference, nicknamed “AI Woodstock” by Bank of America, here . “We think the major takeaway from the week will be a clear vision to NVIDIA being sold out through 2024, a clear product cycle supporting another growth year in 2025 (B100 and others), and a vibrant ecosystem ripe to monetize the tremendous opportunities as we approach a tipping point in Generative AI,” Cantor Fitzgerald analyst C.J. Muse wrote in a note. The event kicks of Monday. Other stocks could see a lift in the coming week off the Nvidia conference including AMD, Broadcom and Oracle. It isn’t just fundamental investors getting worried about Nvidia , so are chart analysts. How to trade Nvidia In a column Monday, Fairlead Strategies founder Katie Stockton gave a guide to how to trade stocks that have ” gone parabolic ” like Nvidia and Meta. “A 20-day moving average (MA) can be helpful as a gauge of short-term momentum, in general. It is especially useful in helping us stay on the right side of steep uptrends,” Stockton wrote. “Quite simply, when the 20-day MA is pointing higher, as it is currently for NVDA and META, it supports holding existing exposure.” You can read more here . Nvidia alternatives Another top-performing Pro story this week was David Keller’s on the potential breakout in Block , the parent company of Square. Such a trade could benefit investors looking to slightly diversify from Nvidia. “A quick review of the weekly chart of Block shows a clear inverted head and shoulders bottoming pattern, represented by a low in October 2023 surrounded by higher lows in May 2023 and January 2024,” Keller wrote . Another alternative to Nvidia, according to fund manager Stephanie Niven, is KLA . KLAC 1Y mountain KLA Corp. 1-year The company “leans into the supply chain of AI,” said Niven. “This is a business that decarbonizes the AI transition because it reduces errors and increases yields.” You can read more here . Under-the-radar call of the week To be sure, it wasn’t all about Nvidia. Reader interest was piqued by Bank of America hiking its price target on Vistra, a little-known nuclear stocks that could capitalize on the energy demand needs from AI data centers. VST YTD mountain Vistra, YTD “The projected growth of data centers is positive for incumbent generators via higher realized power prices/margins leading to yet further upside,” BofA said . Read the full story here.