 |
| NVDA since 8/17/18 |
Revisiting the catalysts for NVIDIA to outperform the market for the foreseeable future:
- NVIDIA is at the heart of technologies shaping our future: deep learning, artificial intelligence, datacenters/cloud computing, and automated driving. Note that cryptocurrency, which was (supposedly) responsible for the market's initial disappointment, was not and is not part of the story.
- NVIDIA's market cap is currently $172B, while Intel's (INTC) is $221B. Within the semiconductor industry, Intel is the best-in-class manufacturer, while NVIDIA is the best-in-class designer. If someone wants the most powerful chips in the world, they choose NVIDIA. Therefore, I believe NVIDIA's market cap will eventually exceed that of fairly-valued Intel's - currently implying a minimum 28% upside.
- The market still cannot catch up to NVIDIA's earnings growth. Q3 2017 to Q4 2017 earnings growth was over 40%, yet the market believes Q3 2018 to Q4 2018 earnings growth will be negative (from Yahoo! Finance):
Here's my current portfolio (buy and hold). As always, I believe in all of these stocks - until I sell them.
Amazon (AMZN) 16.27%
NVIDIA (NVDA) 16.08%
Apple (AAPL) 13.38%
Tesla (TSLA) 11.47%
Alphabet (GOOGL) 6.61%
Intuitive Surgical (ISRG) 4.20%
Facebook (FB) 4.10%
Microsoft (MSFT) 2.88%
Adobe Systems (ADBE) 2.69%
Salesforce.com (CRM) 2.25%
Nike (NKE) 2.21%
Visa (V) 1.86%
UnitedHealth Group (UNH) 1.69%
Intel (INTC) 1.55%
Waste Management (WM) 1.42%
BlackRock (BLK) 1.30%
Costco Wholesale (COST) 1.28%
Chubb Limited (CB) 1.23%
Booking Holdings (BKNG) 1.21%
Starbucks (SBUX) 1.19%
Autodesk (ADSK) 0.97%
Comcast (CMCSA) 0.57%
Activision Blizzard (ATVI) 0.52%
CSX (CSX) 0.49%
American Water Works (AWK) 0.48%
Norfolk Southern (NSC) 0.48%
Union Pacific (UNP) 0.41%
Aqua America (WTR) 0.41%
Canadian National Railway (CNI) 0.40%
Kansas City Southern (KSU) 0.34%
