To the Cloud (And Beyond): Nvidia

ToP Investor’s Letter: Volume CI, Issue #13

Nvidia ( NVDA) typically needs no introduction to regular ToP Investor’s Letter readers. The semiconductor powerhouse straddles growth trends like artificial intelligence (Al), autonomous vehicles, cloud computing, and more, And while several of our holdings comprise decidedly non-tech shares that leverage AI for competitive advantage, we won’t overlook technology pure plays like Nvidia.

The company has been on a tear, returning nearly 5,000 percent over the last decade. We expect continued growth as we ride technology trends into the future, particularly with Al and the Cloud. The current global semiconductor shortage, while expected to be less severe in 2022, should bode well for Nvidia’s prospects.

One key risk in the near term is pushback over competition concerns from regulators looking into Nvidia’s attempted $40 billion acquisition of Arm Ltd. from SoftBank.

The company executed a 4 for 1 stock split as of July 20. The dip earlier this past week allowed us to pick up shares at $187.39 per share.

LISTEN

Nvidia’s Applied Research Accelerator Program is helping citrus growers fight a terrible disease called “citrus greening” that kills of trees. Along with Professor Yiannis Ampatzidis of the University of Florida, the team is deploying a fleet of smart sprayers that analyze and treat each tree. The Nvidia GPU-enabled units let researchers collect and analyze data in the field, allowing for real-time decision making.

WATCH

NVIDIA CEO Jensen Huang’s Teratec Keynote: The Industrial HPC Revolution. Jensen discusses high performance computing and how performance and scale are required to address industrial problems. High Performance Computing, along with the cloud and edge networks, will revolutionize all industry — from agriculture to manufacturing, to aerospace, to pharmaceuticals.

BONUS

Liquidity for Private Investors

This week’s Panic with Friends, as always, was a deep dive into the Golden Age of Finance. It didn’t disappoint. Towards the end of the interview, Sam asked Howard what’s the one product, trading related, you would…