Yup!
Nonetheless, this is a really good 10-Q. You just don’t generally get that kind of YoY from a large/mega-cap.
That said - a 10:1 rather than 5:1 does give me a bit of pause.
Don’t get me wrong; as a shareholder, I’ve got nothing but kisses for Jensen Huang... however, I get leery of investments that move out of their comfort zone.
Wish I were a genius, but I’m not - I jumped into NVDA a fair bit back (2019/2020). I’m a fairly classic Buffett-style investor: Buy and hold, find equities in a growing space who are best-in-class, etc. I bought into NVDA because the chip space - and particularly, NVDA’s old bailiwick of GFX - were lapping competitors and the space was growing. I bought in further when they got a bump from alt-use of chips for crypto mining - and liked that they saw it as nothing more than a happy blip, but not part of their longterm strategy. I didn’t expect the AI revolution nor NVDA’s leadership in it.
By splitting 10:1 (rather than a more conservative 5:1 or whatever), they’re looking for liquidity... and that means it’s time to start looking elements *beyond* their pure market space and market space leadership.
It can be done - Apple transitioned from a future visionary to an Operations expert to maximize efficiency to, well, what they are now: price support via a pile of cash (read: buybacks) + a relatively safe, albeit no longer growing or exciting revenue stream.... Call it the IBM track.
Feels like a crossroads to me for NVDA - and to be honest? I’m not entirely sure what I think about it going forward!
“Feels like a crossroads to me for NVDA - and to be honest? I’m not entirely sure what I think about it going forward!”
I am neutral right now but NVDA has a great future.