Munro Climate Change Leaders Fund on NVIDIA Corporation
Thesis
Munro regards Nvidia as a core enabler of more energy-efficient AI computing and data centres. Strong earnings and management guidance for about 70% revenue growth in the next fiscal year demonstrate what the fund sees as exceptional visibility into AI demand. Nvidia’s GPUs can perform certain AI workloads far more efficiently than traditional CPUs, aligning the holding with the fund’s energy-efficiency mandate. The fund believes the AI infrastructure buildout and continuing efficiency gains provide enduring growth opportunities.
“Our view is that Nvidia enables more energy-efficient computing and data centres.”
Key risks
- Political backlash against new AI data centres ahead of US elections
- AI regulation concerns and rotation away from AI infrastructure stocks
- Potential reductions in the pace or returns of AI data-centre investment