Andrew Hill Investment Advisors, Inc. on NVIDIA Corporation
Thesis
Nvidia is presented as the leader in the global buildout of artificial intelligence infrastructure, supplying the advanced computing hardware required for demanding AI applications. The fund says fundamentals remain very strong and expects revenue to grow more than 70% over the next year. It also believes the shares are attractively valued relative to higher-flying chip peers despite Nvidia's stock lagging some of them. The position is therefore framed as a direct way to participate in the long-term growth of AI.
“Nvidia remains one of the most compelling ways to participate in the long-term growth of artificial intelligence.”
Key risks
- AI infrastructure growth could slow as new compute supply comes online and begins to match demand.
- Community opposition and greater regulatory scrutiny could slow data-center development.