LongRun Equity Fund / Rothschild & Co Investment Managers on Nvidia
Thesis
LongRun initiated a position in Nvidia during the quarter because it believes the company's fundamental profile has strengthened while its valuation has de-rated. Nvidia now benefits from a massive installed base that makes its end markets more stable and supports a healthy replacement cycle. CUDA creates high switching costs because customers moving to an alternative platform would face significant disruption given the depth of Nvidia's developer tools and application libraries. The fund also believes Nvidia's architecture provides superior performance relative to power consumption, reinforcing its position as the go-to accelerated computing platform.
“The stock has de-rated despite becoming fundamentally even stronger, and we are taking the opportunity to build a position.”