NVIDIA Corporation (NVDA)

He thinks it is fully valued with the growth priced in. The chip record can be cyclical and there could be a glut of GPU's, probably not next year but in 3 to 5 years.

What's not to like, but how long will it last? Some say a few years, others we're near peak demand. Look at price: 50x PE and 35x forward PE, assuming it reaches growth projections. Eventually, this will normalize, but doesn't know when. He owns a little, but uses options.

The question was on Semi conductors and his favourite in this area. This is a cyclical space but it still has so much ahead of it. His favourite is Nvidia and he just bought more at about $100. At 30X 2025 P/E it is OK for a stock growing at 40% to 2028. It is buying back $50 billion in stock.

Growth continues very strong. Great to buy closer to the 200-day MA, which is around $90. Chart is showing a series of lower highs, peaking out in June. Is it just becoming another mainstream name? It's not really a contrarian name at this point.

There's a secular tailwind for this tech spending. The die is cast. It will keep going for the time being. The best sub-sector in the S&P today are semis and NVDA is the 7th-best performer. The spending is happening. NVDA is the default play.

The big question is whether to look for an entry point and whether to hang on or take some profits. Insiders are finally deciding to to sell. 46% of revenue comes from 4 companies which have ramped up spending on AI - will they be able to sustain the spending. The new Blackwell chip is 4 times more powerful. At some point will customers be satisfied with chips as they are and not want even better ones.

The PE has fallen and is now appropriately priced.

The semis will become cyclical. Future EPS growth is expected to be 28%. He doesn't see that growth in 2028, though in 2025. Why? Customers can't get enough of NVDA's AI chips. So, customers are now over-ordering, and eventually supply will catch up, and orders will be cut back. But for the next few quarters, this won't happen to NVDA. NVDA is absolutely a buy now.

Very strong performance the past year. Will continue to hold. Strongest tech stack in A.I. field. Would recommend buying stock when there is a pullback. No other competitors. Expecting further growth with new products. 

Habits die hard. A lot of people are very committed to large-cap tech. He is less committed. He owned NVDA from $14, and came out of it a couple of months ago because there are other things to do.

It's been in the sweet spot for a long time due to videogames, cloud and now AI, for which they have a great product. They blew away their numbers last quarter, and raised expectations for the future. Other companies will develop products to compete, but not for a while. NVDA's growth in the past 2 years is incredible. But now, it's not cheap. Everybody needs AI infrastructure and NVDA is the only place to sell it. But the problem is the volatility and the massive expectations.

Happy to own a big holding and was not thrown by yesterday's report, which was good, or downward stock move. The forward PE is only 40x and growing earnings at 35% annually. Excellent. No, this growth won't last forever, but for the next few quarters, their order book is strong. He may trim at a higher PE.

It was down yesterday post-earnings only because expectations were so high. There's nothing wrong with NVDA. Demand from hyperscalers is up 40% this year. NVDA was up 151% before the report, which was good as was guidance.