Merchant West Global Equity Fund on NVIDIA Corporation
Thesis
Merchant West initiated a 1.9% position in Nvidia because the scale of AI infrastructure spending is proving materially larger than the team initially expected. Nvidia sits at the centre of that build-out, and the fund believes its valuation is not overly stretched relative to the growth runway ahead. The position remains deliberately sized because the manager also believes the AI cycle can turn quickly. P(1) Merchant West Global Equit… NVIDIA Investor Relations
“The scale of AI infrastructure spend is proving materially larger than we first anticipated”
Key risks
- The AI infrastructure cycle can turn quickly
- Returns on the broader AI capital-expenditure boom remain uncertain