Sustainable Growth Advisers, LP on Nvidia

SGA remains constructive on Nvidia after strong results and disclosures showing demand from the largest cloud customers consistent with its long-term outlook. Management continues to see multi-trillion-dollar AI spending over time, with growth coming from both hyperscalers and non-hyperscalers as well as networking and emerging CPU opportunities. Networking sales are already running at a large annualized scale and the new Vera processor adds another potential growth vector. SGA believes Nvidia's technological advantages and the scale of the AI opportunity position the company favorably over the long term. The firm raised its internal target, added to the position and maintained an above-average weight.