NVIDIA Corporation (NVDA)

Along with AMZN, looks pretty compelling here.

Lots of smart people out there have memories of 2000, the buildout of fibre optics, and  JDS Uniphase on the other side. And they're asking whether we're at peak demand. He really doesn't think so.

AI is just changing everything. Everyone's trying to figure out the terminal value of software companies. This is a world of haves and have-nots -- some companies will be here, and some won't.

But one of them that's going to be is NVDA. Growing at 38%, and PE is 22x earnings for 2027. Belle of the ball. Really good buy. Cyclical story, and there will be a time to get off. But we're not there yet.

From a technical perspective, the MAGS ETF is trading below the 200-day MA, with relative RSI weakening. This group is less attractive, and still over-owned.

He's still holding this name, as it's one of the strongest of large-cap tech. Across the firm, they have a 7% technology weight. That's extremely underweight.

Nvidia gets cheaper and cheaper in terms of PE as shares have risen 50% in the past year, and the market will probably cap shares at $200. 

Their last two quarters were incredible, but she continues to sell calls with a strike price of $200, because they stock can't get above that. But she expects to hear about their new chip at Monday's GTC, which is 5x as fast, and to hear about the future of AI.

He bought more before Monday's GTC. It's one of his biggest holdings. The stock has been pushed to the backburner lately. He targets $250.

Not one of the hyperscalers that's spending billions. Will be a beneficiary of those spends. Long term, continued beneficiary of AI buildout. Whole tech sector is taking a backseat on leadership right now.

Likes it. He models earnings growth of 74% for 2027, 31% for 2028, and a bit slower at 13% for 2029. A must-own in your portfolio's technology sleeve.

 See his Top Picks.

They continue to buy companies that can help build more data centres, including one today in an AI cloud company. This time can't shine until the US-Iran war is over, but NVDA can be bought on the way down.

He just bought it. Never bought it before because valuation were too high. Fundamentals remain strong, even improving on terms of earnings. Trades at 22x PE, growing revenue 7% YOY. They are sold out of chips, demand strong.

Just about every tech company said they were investing billions that meant a huge runway for NVDA, until NVDA reported. The report didn't surprise. A lot of noise now. It's fully priced and not a good time to enter. 

CEO reminds him of the Cisco CEO in the dot-com era -- under-promised on guidance to give them wiggle room so that they could keep beating the numbers. The numbers always sounded impressive because they always beat. Not quite the same thing here.

Biggest issue for NVDA is what happens when they miss? The odds of beating this time are better than average. It's a know-how-to-play-the-game kind of story.

Today, they reported a healthy top and bottom line beat with a healthy 75% growth in data center and decent guidance this quarter. Shares were up after hours. Demand for their chips is off the charts.

Isn't concerned about the report. He looks 2-3 years out. We know chip demand is already through the roof. What worries him is a company like Meta signing a deal with AMD, an alternative source for chips. NVDA needs to stay ahead in performance and energy consumption. He prefers infrastructure, like TSM.