Munro Global Growth Small & Mid Cap Fund on Nova Ltd.
Thesis
Nova supplies semiconductor metrology and process-control technology. Munro sees the migration to advanced process nodes and high-bandwidth memory as increasing fabrication complexity and the need for more precise process control. The share price declined in the AI-supply-chain deleveraging, but the fund explicitly says the underlying demand thesis is unchanged. Continued investment in these advanced chip technologies should support demand for Nova’s solutions.
“However, our thesis remains unchanged: the shift toward advanced nodes and high-bandwidth memory requires increasingly complex process control”
Key risks
- Forced selling and deleveraging across AI and semiconductor holdings
- A slowdown in advanced-node semiconductor investment
- Slower adoption or capital investment in high-bandwidth memory