I'm in a bit of a conundrum with my NVDA (NVIDIA Corporation) investment and could really use some advice.
Currently, I own 50 shares of NVDA valued at around $30,000, purchased back in 2017 at $34 per share, with a cost basis of $1,700. This stock has seen unbelievable growth since then of over 1600% and now constitutes 45% of my non-taxable investment account and roughly 20% of all my investment accounts, excluding my home.
Last year, I sold about $5000 worth of NVDA to diversify, but I'm torn about what to do next. On one hand, the stock has been on a tear, and their future looks extremely promising with AI advancements and the huge demand for chips going forward. However, I'm aware of the need to diversify, as well as the risk of the stock taking a massive downturn and significantly hurting my net worth. There are also tax considerations if I sell, since I'll be on the hook for some significant capital gains tax.
For some context, I'm a married man with two kids, a house with $200k in equity and a $200k mortgage. I have around $80k in IRA accounts and $65k in taxable brokerage accounts amd some cash on hand for emergency fund etc. Little debt otherwise.
Any advice on whether to sell and diversify, ways to mitigate risks, or hedging strategies would be greatly appreciated. How should I navigate this situation, considering the potential tax bill, its outsized share of my portfolio and the promising future for NVDA? Thanks in advance for your insights!
Submitted January 26, 2024 at 01:40AM by RandomDude4548 https://ift.tt/xVuJklO
