NVIDIA Corporation (NVDA)

Likes it. Pundits are calling it the most important stock in the world. Certainly contributes the most to the day-to-day variability in the S&P 500. Makes outsized moves, trading volumes, headlines. It's all about driving innovation in AI race. Undisputed leader. Must-own. Comfortable owning here.

Had a tremendous run, so he took the position size down a little while ago because it got too large. It's one you have to own as a proxy for building the power to build the models for machine learning. A generation ahead of anyone else in chip architecture and software. Expensive, but growing rapidly, deserves the move higher that it's had. Prefers it to AMD.

AMD is a bit of a show-me story. 

He owns lots and just trims his position. Yes other companies could copy its products but at 30 to 40X earnings it is not priced too high. If it reaches $1000 they would be better off to split it. It is a 2 to 3 year hold.

Has held position for over a year. Strength continues in stock. #1 in portfolio. Excellent technology with strong demand. Trend heading in the correct direction. Bringing up other tech stocks in market with it. 

He added more shares after the CEO spoke at a conference. Not a large position and he's still holding significant cash.

It broke $925 and he targets $1,000.

Both are leaders in chips and their packaging. CEOs are cousins, must be something in the water :)  Recently sold AMD, it had a rollover, so looks more attractive. 

NVDA is still fairly evenly priced. 12-month price target of $970. If you ever get the chance, pick up south of $850, and certainly toward $800 would be a great spot. He's much more skewed to this than to AMD.

The top of the Magnificent 7. They announced last night new chips and will move into software. The issue with NVDA is that it's priced for perfection, like doubling earnings this and next year. If something happens (though he doubts it), the stock will tumble. If they deliver, they will have to exceed expectations. Also, it is facing competition as peers work to catch up.

She trimmed, taking profits late last week. Nothing is wrong with the company fundamentals, but a lot of good news has been baked in.

It remains the only game in town, but the downside lately reflects the wider market. People are pausing until they hear from the Fed on March 20. There are always buyers who get in at the top, but are also the first to exit. That's what we're seeing here, in MSFT and Meta. After huge gains, take some profits. It's a good consolidation period influenced by this week's hot inflation numbers. Valuations are inflation, so don't put more money in the market now.

You can make exceptions, as he has with Apple and Nvidia. You can trim, but he's been reluctantly because these have been his best stocks. It's a subjective call, but you can trim when a stock because too large a stock in a portfolio.

At some point, this will correct, but nothing worse. Bears point to the 35x forward PE, but this is growing into its earnings 50% year over year. No sign of inventory gluts. He expects dip buyers to swoop. At some point, you need to trim this, and tomorrow's CPI figure could be the trigger.

A lot of people want to get into this but aren't yet. He doesn't know what the floor of this is. He owns little of it, buying it on a dip last year. Owns more of Taiwan Semi who supplies NVDA.