Minotaur Global Opportunities Fund on NVIDIA Corporation
Thesis
Minotaur began adding Nvidia in the second half of July after having reduced the broader AI-infrastructure cluster in June for concentration reasons. The fund interpreted the July selloff primarily as a deleveraging and positioning event rather than evidence that the underlying AI earnings cycle had broken. Nvidia itself had fallen only a few percent while memory stocks collapsed, reinforcing the view that the repricing was concentrated in memory rather than AI broadly. With the portfolio already de-concentrated, Minotaur believed it had room to buy into the weakness while the earnings evidence remained intact.
“We have begun adding back, buying Micron and Nvidia in the second half of July.”
Key risks
- Hyperscaler capital spending could be cut if customers fail to earn adequate returns on AI investment.
- Further leveraged-position unwinds could pressure AI-linked stocks even without a change in fundamentals.