Q: Assuming that one is a bit overweight in CSU and lacking NVDA, how would you consider a reallocation of investment dollars at the current time (i.e., realizing they have been trending in opposite directions)?
Relatedly, would you be comfortable purchasing NVDA at current levels (~$205).
Thanks!
Relatedly, would you be comfortable purchasing NVDA at current levels (~$205).
Thanks!
5i Research Answer:
We continue to like CSU and believe it to be a high-quality, long-term name, but we would be comfortable with a more even split between CSU and NVDA, given NVDAs industry leading position in the AI compute space, and its increasing momentum. Despite NVDAs performance year-to-date and over the past few years, it trades at what can be considered 'reasonable' (36X forward earnings) for the largest and arguably most important name in the AI revolution.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in NVDA.