Thank you for sending in questions and feedback!

Every Saturday I respond to reader emails in the AskDavis@paradigmpressgroup.com inbox.

Here are my responses to this week’s emails:

I do not own any Nvidia stock. Do you recommend that I buy some? If so, at what price per share? – Diane

Thanks for the straightforward question, Diane. My price target on Nvidia (NVDA) is $320-$400 per share.

I explained my reasoning in Thursday’s alert.

I don’t know exactly when we’ll get there, but each earnings report only strengthens my conviction.

Whether you buy today or wait for a pullback probably won't matter much if the stock ultimately moves into that range.

Wedbush just made a statement that the Feds letting go of 10 executives may indicate they are ready for an IPO of Fannie Mae (FNMA). What are your thoughts about this statement and how would they figure out the price of an IPO? – David

The price will be set by investment bankers and determined by using supply/demand and fundamental factors.

Bill Ackman conservatively estimated $30-$40.

I agree that the layoffs could be seen as a positive if they were truly done to replace old executives with new talent before an IPO.

The official word, however, is that these layoffs were due to advancements in technology and artificial intelligence allowing the agency to streamline operations and remove unnecessary processes and personnel.

Regardless, it seems like the wheels are moving in the right direction. I’m sticking with Fannie Mae.

Seems like numerous AI companies have all of their 2027 production capacity booked, and even into years beyond. How do these companies grow in value if there is a wall in production output? – Lori

Great question, Lori. Remember that the stock market is forward-looking.

Investors aren't just looking at what these companies will produce in 2027. They're looking at 2027, 2028, 2029, and beyond.

If anything, having production sold out years in advance is a bullish sign. It tells management demand is there, giving them the confidence to build more factories and expand capacity.

That helps increase the “wall of production output” you allude to – allowing the company to increase revenue and profits as well.

So while plenty of AI companies can’t satisfy all of their demand, strong demand today lays the foundation for even larger businesses tomorrow.

When I was a stock broker around the turn of the century, stock splits seemed more prevalent. Three digit and four digit stock prices were pretty rare. Is there a reason companies seem more hesitant to split their stock? For instance, in 2000, Micron (MU) would definitely have announced a 10:1 or 15:1 split. At the very least they would do a 5:1 split. It seems this just does not happen much any more. Do you have any color on this? – James

Thanks for the question, James. I’ve got a couple of hunches.

First, fractional shares have made stock splits much less necessary. Today, someone can invest $50 in a $1,000 stock just as easily as buying one share of a $50 stock.

Second, I think there's a certain prestige that comes with having a high-priced stock.

Just look at the Magnificent 7. Most trade in the $200-$400 range, with Meta a bit higher. Something tells me these companies like the fact they’re grouped together in both quality and price.

As for Micron, the stock has only recently made this move higher. If this level holds, I wouldn't be surprised if management eventually announces a split.

I have owned Micron (MU) and sadly sold just prior to its historic run past $1,000 and on. Bought again around $1,050 and now I'm at $938. Of course, it's no 50 shares but it was a welcome confirmation when I just saw your recent purchase of Micron. I have this uncanny ability to cause great stocks to turn south soon after I buy any amount of them. This was my experience with Micron as it soon did just that after my third entry into this stock since 2019 when recommended by another company. I usually catch you every Saturday but missed a couple. I see a 100% return on this one. Involving a split probably 10:1 before reaching that mark. I have added to my forever portfolio with an option to sell a portion if any appreciable action surprises us on the level of the recent ones. – Emo

Emo… I do this for a living and a lot of times I feel like I’ve got an uncanny ability to cause great stocks to turn south myself.

It’s part of the game. Hopefully in the long-run we both tally more winners than losers.

With Micron, I think we’ve got a winner on our hands. The Nvidia earnings call on Wednesday made me even more bullish on memory.

And if this supply shortage lasts a few years as expected, I believe investors will start to take notice.

My question today is regarding structured notes. Do you think the Japanese yen US dollar trade issue will affect structured notes moving forward? I am invested in some private lending and was considering transitioning to structured notes. What are your thoughts? – Jeff

Jeff, this is a stock market-focused newsletter. But I take pride in answering all the emails in my inbox so I’ll give you my thoughts.

Structured notes come in all different varieties, so it’s difficult to give a specific answer.

Instead, I'd ask: Why structured notes?

Was this your idea? Or did a financial advisor – who also happens to collect a large commission on these products – recommend them?

And if Treasury Secretary Scott Bessent can't accurately predict where the yen and dollar are headed, I'm not sure why the rest of us should try.

If your goal is to make money, I think there are easier ways to do it.

Important Update: The Million Mission website is live!

I constantly get questions regarding where to find previous alerts. Well, The Million Mission website is live and you can check out archived alerts here.

Portfolio Overview

Here’s what I’m currently holding in The Million Mission portfolio:

Fannie Mae (FNMA) – 3,500 shares @ $6.86/share

Uber Technologies (UBER) – 200 shares @ $80/share

Nvidia (NVDA) – 200 shares @ $179/share

Micron (MU) – 50 shares @ $935/share