Why We Added NVIDIA to Our Portfolio
AI is here to stay. Our investment in NVIDIA starts with that belief: as businesses continue developing and using AI, the computing infrastructure behind it will remain important. NVIDIA’s GPUs help train and run AI models, putting the company at the center of that opportunity.
Today, we allocated our remaining $7,500 of model-portfolio cash to NVIDIA, using the November 11 opening price of $172.72 per share. This added approximately 43.423 shares.
Why we’re buying
NVIDIA’s recent decline brought its stock near its 52-week low. We see an opportunity to buy a business we believe has lasting value while investors are reassessing its risks. A lower price alone does not make a stock undervalued, but it gives us a reason to look more closely. [1]
Recent reporting about Jensen Huang and concerns involving customer Megaspeed have added uncertainty. Reuters reports that investigations are underway; the intelligence allegations remain disputed and were not independently verified by Reuters. NVIDIA has said it has no reason to believe company secrets or U.S. national-security interests were compromised. These are unresolved matters, not established findings of wrongdoing. [2]
Our thesis is that NVIDIA’s role in AI infrastructure can endure this uncertainty. We do not currently expect concerns involving one customer to undermine the entire business. However, the consequences could extend beyond lost customer revenue through export restrictions, legal costs, leadership disruption, or damage to trust.
What we’re watching
We will follow revenue growth, profitability, operating cash flow, customer spending, and developments in the investigations. Strong demand for AI must translate into durable earnings and cash generation to support the investment.
We would reconsider our position if the evidence materially weakens our view of NVIDIA’s competitive position, financial performance, or leadership.
Our holding plan
Our planned holding period runs through December 2027, with reviews along the way. We believe the recent decline offers an attractive entry point, while recognizing that the outcome depends on both business performance and the price paid.
This post documents a hypothetical model-portfolio investment and our reasoning at the time of purchase.
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