Investment Q&A

Q: In the last quarter NVDA increased revenue >100% YoY yet cost of revenue was only up 7%. Very impressive but something doesn’t add up here.

Did they give an explanation for this and/or do you have any thoughts on how they managed this?

Q: hi,
I own these 5 equities in my USD account, plus a reasonable amount of cash that could be deployed. im fairly comfortable with all of them, are you? if I was to shift to an all growth strategy within this account, what would you suggest selling ( if any ), and what would you suggest buying, either new names or current holdings ( with a reasonable target purchase price, if able )? I would be looking for growth companies with positive earnings/earnings growth ( ie nothing highly speculative right now ). cheers and enjoy the long weekend. chris

Q: Hi 5i,
Perhaps this question should be under Miscellaneous, but here goes:
I have my accounts at CIBC Investor's Edge, but they are all strictly CDN accounts - RRSP, TFSA and unregistered. I've now learned that I can buy CDR's in a number of US companies through those accounts, and I'm thinking about getting my feet wet 'down south'..
As an example, NVDA is available and as of Friday was trading at CDN $46.24. On May 31 the NVDA CDR was trading at CDN $36.30. Thus, the CDR has appreciated 27.4% over that period, whereas the US NVDA went from $378.34 on May 31 to $485.09 on Friday, a gain of 28.2%. So very little difference in the return it seems.
If I were to acquire some US names through the CIBC CDR's, they would all be in registered accounts.
Is there a downside or risk to doing this that I should be aware of (other than the normal investment risks) and are there tax ramifications arising out of either capital appreciation or dividend payments if they are in either an RSP or a TFSA?
Thanks - any information you can provide will be appreciated.
Peter

Q: Why is there such a valuation discrepancy between these two? SMCI requires NVDA chips to assemble their AI servers. NVDA growth seems to be being mirrored to a certain extent by SMCI, but the valuation gulf is huge. Aren't the two joined at the hip?

Q: Could you comment more on NVDA's valuation? Do you have any thoughts about at what level its PE might end up stabalizing in the long run?

Q: In my previous question, I asked for recommendation for a few AI-related stocks. Your response to my question included a link to a page that contains individual AI-related stocks. I clicked on it, but the link didn't work because of an invalid url.

Would you please either provide the names in your reply or send me another link with a valid url.

Cheers,
H

Q: So here's my predicament. Over the past many years my portfolio largely reflects NASDAQ returns but has much more volatility. I'm thinking of just buying a bunch of QQQ (or XQQ) so I worry less about the volatility while still getting similar returns. I still like picking stocks and was thinking of holding most of my tech in QQQ while trying to pick a few tech stocks to 'juice' returns. If you were to pick 5 NASDAQ stocks that might outperform the NASDAQ over a mid-long timeframe, what would they be? Note these can include large caps (MSFT, NVDA) or anything else.

Q: What 3 US stocks would you recommend for TFSA for 5+yr timeline? Not concerned about sectors. Just the 3 best growth names that YOU would buy. I have GOOG and NVDA at half positions. Thanks!

Q: What are your top 4-5 picks (stocks or ETFs) for an RRSP with a 15-20 year horizon?

Thanks,

Q: Good morning, would it be too late to get on the Nvidia bandwagon for a 2 to 3 year hold, thanks?

Q: If you wanted to take a position in a stock in the AI phenomenon what would be your top 5 picks. Could please indicate the reasons for your choices.

Q: You'll probably get a lot of questions on NVDA's earnings. My question is on the announced $25B stock buyback. Is it me, or is this absolutely insane given the price to book valuation? Doesn't this lower the book value per share?

Q: Hi 5i,
These holding are all in my RRSP, 12 months from retirement, I'm planning to sell 80% of TOI, LMN, NVDA (not now) waiting for "better time" if it's possible to catch it. Can I have 2 or 3 suggestions for income + a bit of growth.
thank you 5i for all your great work!!!

Q: I know you like NVIDEA but curious on how you would handle (trading strategy?) all the hype heading into their earnings release on Wednesday?

Q: AAPL has had a great run.

This is probably a non-obvious question what any leads on what would be an AAPL-like stock circa pre-iPhone?

Q: Good day,

I did some rebalancing based on your response to my Feb question. I bought GOOG which paid off, GXE which sort of didn't (yet), and held the rest, and definitely should have listened on LLY and TFII... Wow.

My NVDA took off, and I believe ZWT mostly gained from it and the mega caps as well. NWH.un continues to wallow.

I'm looking to diversify, as I'm heavily concentrated in tech and Energy. Are there any materials that you expect to have a high demand on the horizon? Similar to Uranium/Lithium

Would you take some NVDA gains, and sell ZWT (I hold AMZN, GOOG, NVDA, TSLA separately), Sell NWH, in the current market, and then where in the above sections would would distribute it? Did I miss the boat on TFII and LLY?

I've also held BNS on and off the last 5 years, would you exit that in the current interest market?

Please recommend a couple options in each of a few sectors that you find most compelling right now, thanks.

[Apologies for the disjointed question, the text box on mobile is pretty small]

Q: In your opinion, is the drop in SMCI having a knock on effect on NVDA stock price today?

Q: Good Evening 5i Crew,
I bought 100 shares of Nvidia about 18 months ago and I am up 95%. I strongly believe in the capabilities of this company and the part it will play in technology over the next 5-10 years. However the noise around valuation is getting pretty loud. Do you suggest selling 50% (getting my original investment out) of the shares and play with the house money? I have a 5-10 year horizon
With thanks for your opinion

Q: Good day 5i,

I currently hold positions in 5 semi-conductor companies: Nvidia, ASML, AMD, Taiwan Semi and Axcelis. I'd like to concentrate the positions in order to make the remaining positions more meaningful. However, I like all of these companies and feel they all have great growth ahead. If you were to concentrate this group, which would you sell? With those funds, in what order would you add to the others? Or would you keep all of them?

Growth-oriented investor, comfortable with volatility.

Thank you for your insights,

Q: 5 must own stocks (US/Canada) in your opinion for long term-10 years irrespective of sectors.