Sustainable Growth Advisers, LP - U.S. Large Cap Growth on Nvidia

SGA remains constructive on Nvidia because demand from major cloud customers continues to align with the company's long-term outlook. Management continues to expect multi-trillion-dollar AI spending over time, with contributions broadening across hyperscaler and non-hyperscaler customers. Networking has developed into another major business, with sales running at roughly 60 billion dollars annualized, while the Vera processor represents an additional growth opportunity. Nvidia is also increasing capital returns, including substantial planned buybacks. SGA believes the scale of the AI opportunity and Nvidia's technological advantages outweigh periodic volatility around competition and the sustainability of AI spending. The fund raised its internal target, added to the position, and maintained an above-average weight.