NVDA is a buy due to strong AI infrastructure demand, high growth, and attractive valuation; target price $280-$300 in 6-12 months.

Nvidia just announced a $150 billion stock buyback, and investors need to understand what that really means. This is the largest share repurchase authorization increase in history, and Nvidia plans to continue the program through fiscal 2028.

When a company buys back its stock , it reduces the number of shares outstanding. If profits remain unchanged, earnings per share increase. This can be beneficial for shareholders, especially if the company is buying shares at an attractive price.

However, there is one important point. Nvidia hasn't actually spent this $150 billion yet. This is just an approval, not an immediate purchase.

And just because a company announces a huge buyback does n't mean the stock is undervalued. We need to look at the real business.

Let's look at the latest earnings report , because these numbers are almost hard to believe. Nvidia reported quarterly revenue of $96.2 billion. This is a 106% growth compared to the same quarter last year.

Their data center business alone brought in $89 billion, a 117% increase year-on-year. And Nvidia reported quarterly net income of nearly $60 billion. Think about it. This company has made a profit of around 60 billion in just 3 months and management is forecasting revenue of around 108 billion for the next quarter.

Companies are spending a lot of money building AI infrastructure, and Nvidia is capturing a large portion of that spending. However, the question investors need to ask is whether this growth trend will continue.

Now, here's the real issue. Nvidia ended trading on September 28 at a price of about $229 per share. Despite the incredible growth, the stock is trading at about 16.5 times forward earnings.

Historically, Nvidia has traded at much higher multiples. It is about 30 times its 15-year average forward earnings.

This does not mean that the stock is cheap. Investors may fear slowing growth , or be concerned about the sustainability of AI spending. Management has also given an initial expectation of revenue growth of around 70% for fiscal year 2028.

If Nvidia can achieve this kind of growth while maintaining strong profits, which is honestly one of the most profitable companies in history, then there is scope for a very interesting discussion about valuation based on these current numbers.

I think by the time they have two or three more quarterly results in 2027, this stock will be worth $300 or more per share. However, if growth is disappointing, its valuation could remain under pressure.

The valuation is so low now that I don't expect much pressure on Nvidia. Even in the worst case scenario, I see a support level of $ 200 per share.

But, where could Nvidia stock actually go in the next 6 to 12 months? Let's look at three possible scenarios, starting with the most likely one.

In my bullish or positive scenario, spending in the AI ​​infrastructure sector remains strong, Nvidia meets their growth expectations, and investors become willing to pay higher earnings multiples.

In such an environment, I'm thinking about $ 300 per share , as I said a little while ago, or maybe even higher in the next 12 months.

Now, my main idea is around $ 280 to $290 per share. It's not a huge increase from here, but at the same time, what are you expecting? The market cap of this company has already exceeded $5 trillion.

Now, speaking of a bearish or negative scenario , if hyperscalers reduce their AI spending or competition increases or Nvidia margins come under pressure, then in that scenario I could see the stock falling to $200 per share.

Obviously, there are no guarantees on the price target and I am not a financial advisor, but I am very optimistic that Nvidia will continue to grow and offer investors a bright future.

Now, let's talk about what I would actually do with Nvidia , because I'm considering two different options strategies right now. The first is selling a cash secured put and the second is a poor man's covered call, which is a bit of a complicated strategy, but I'll show you exactly how I see it now. Here Nvidia stock is trading at $231 per share.

The first trade I want to look at is selling a put option. Now, I think selling put options on Nvidia is really smart. If you look at the last 3 months , the stock is up 19%. So, to be honest , being an investor in Nvidia is undoubtedly very profitable, but if you want to continue investing in Nvidia at this stage, the price of $231 is positive in my opinion, but buying during the price drop would have been more profitable.

Instead of waiting for the price to drop as you like , you can instead use my put selling strategy. Okay, I'm going to trade options now and clicking on the monthly term option.

But honestly, I'm looking at November now, because at the time of making this video it's October now , so I want to move on to next month. This is after a little more than 30 days. I'm looking at the 225 strike price here.

Now, the reason I like 225 is because if it drops just $5 from the current price, we're already getting a $5 discount. On top of that, if I sell this put option, I get $10. So, by combining the $10 and $5 discount, I'm basically getting a total discount of $15.

And the point is more convenient because I want more Nvidia stock. I'm thinking about dollar cost averaging. Think about it. Selling a put option is essentially a type of forced dollar cost averaging.

Yes. I often say to my students when teaching dollar cost averaging, "Instead of dollar cost averaging the old way , which is just buying shares, why do n't we sell put options?"

And if we are assigned to do this, then we are effectively dollar cost averaging. So, this is the easiest way I would trade Nvidia now.

Okay, this will definitely require a bit more capital , like around $20,000. Now, I 'll show you 'Poor Man's Covered Call'; I will create a complete playlist on this topic for you to watch.

It's a little complicated , but I'll explain the trade and if you want to learn more, I'll provide a link at the end of the video.

So, I'll go buy call and buy a LEAP option first. The leap option I will buy will expire in September. I want to buy a leap option that is already in- the-money, you see here the delta is 0.67 or about 0.68. It will cost $46.

What I will do now is use this long-term leap option as an alternative to shares. This is something I teach often and I have my own personal strategy called DEEPS. So, this way I will buy a Leap option on Nvidia , which in my opinion is much better than buying shares, because it is much more cost-effective in terms of capital.

Now, this will work better for smaller portfolios. Now let's move on to selling call options ; I will sell a call option and honestly, I do n't even need to trade the extra. I can just sell a call option for January , which is easier to manage.

Here, if I were to sell an option for January, I would show you a very interesting trade, because if I were to sell at 235 , you might think, it has a high risk of being in-the-money. And it's true, it really is.

But, notice the point here. If this option becomes in-the- money, that is, this short call option becomes in-the-money , basically because the LEAP option you bought has a higher delta and the call option you are selling has a lower delta, I am explaining this option to you. You see it's 51 delta or 0.51, right?

This means that when Nvidia shares rise by $5 , that put option will be more profitable than this short call option. So, as you see here, this is a bullish strategy and the higher it goes , the higher your maximum profit will be.

It shows the maximum profit at expiration , so if we are before expiration, let's say mid-January, that's great because it's the expiration date of the short call. In this example you would basically make $1,100 , right?

So, if Nvidia shares go up a little, okay? Not much, just a small increase will benefit you. Even if it goes above 235 and becomes in- the-money. You can still see here that you will be in a profitable position until the stock goes too high , at which point you may face a loss. But, that will be much later than 300.

Honestly, if it goes above 235 to 245 , I will close the trade and take profit at that point.

Okay , before I give you the playlist, I want to give you a final idea of ​​what I'm doing with Nvidia. Nvidia has announced the largest buyback approval in its history, its revenue is growing at a triple- digit rate, and management is forecasting continued strong growth.

I hope you understand the seriousness of the situation. I think the issue is very clear for Nvidia investors. I've actually been talking about Nvidia for years and I've been an Nvidia investor for a long time.

I worked at a hedge fund long before I invested my own money , when I offered Nvidia an investment. This was in 2018. I realized this a long time ago , but unfortunately, I personally did n't have much money at the time and I didn't get much benefit from that old idea.

However, the hedge fund I worked at ended up investing $100 million , which was incredible. And I didn't get any bonuses or anything extra. So, yes, working in a corporate organization is a bit frustrating.

So, yes, working in a corporate organization is indeed a bit frustrating.

However, the real opportunity depends on how much you're paying and whether Nvidia can meet their current expectations. I have a general price target for Nvidia. However, the two options trading strategies I've shown will work quite well even if Nvidia's shares don't rise very dramatically.

The first trade was about selling a put option , if the price of Nvidia remains stable, you get a premium. So, that's a simple strategy.

The 'Poor Man's Covered Call' strategy is a bit complicated, but honestly, you're just in the long delta. You are optimistic about Nvidia, but not too much, because you are missing out on some profits if the share price goes up too much.

But you are making a profit, as we saw in that profit and loss diagram.

So, for you, I have created a playlist on my YouTube channel titled 'Poor Man's Covered Call'. I have several videos that will help you understand this technique. I'm showing it on the screen right now.

You can take a look at that. I hope you like the video. Do n't forget to subscribe, I will continue to provide regular updates on Nvidia shares and my other investments.