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Please see today’s daily update from EPIC Investment Partners Received this morning:

Nvidia’s stock elicits polarised opinions, as its exponential revenue growth trajectory creates ambiguity between hype and value. Sceptics cite the company’s lofty price multiples as indications of overvaluation and price bubbles while advocates contend that conventional metrics inadequately assess the potential of transformative technologies to drive growth.

Nvidia epitomises the conflict between traditional valuation methods and the disruptive potential of innovation. As investors navigate this landscape, they must balance scepticism with recognition of the potential for genuine paradigm shifts.

The Fourth Industrial Revolution is currently underway, characterised by the rapid integration and advancement of groundbreaking technologies across various sectors marking a pivotal moment in human history. As innovations in artificial intelligence, robotics, the Internet of Things, 3D printing, nanotechnology, biotechnology, and quantum computing continue to unfold, they are reshaping industries, economies, and societies worldwide.

Nvidia is a core holding in the EPIC global equity strategy because it is positioned at the epicentre of this digital transformation, uniquely poised to reap the economic benefits of this revolutionary era.

In the first quarter ended April 28th, revenue surged 262% year-on-year and crushed guidance figures. Pricing power was also exceptionally strong as adjusted gross margins increased 220bps sequentially to 78.9% ahead of guidance of 77%.

Nvidia’s CEO Jensen Huan stated that demand for both its current Hopper AI platform and its more advanced incoming Blackwell system will both outstrip supply well into next year.

We see further upside ahead.

Please continue to check our blog content for the latest advice and planning issues from leading investment firms.

Andrew Lloyd DipPFS

23rd May 2024