Q: Hi Team,
With these uncertain times and some talk of cutbacks in data centre investment I was considering selling 50% of my Nvda investment and buying Csu and Srad with the proceeds. My timeframe is 10yrs or so. Would you consider this advisable or should I hold out and hope nvda gets its mojo back?
Thanks,
Shane
With these uncertain times and some talk of cutbacks in data centre investment I was considering selling 50% of my Nvda investment and buying Csu and Srad with the proceeds. My timeframe is 10yrs or so. Would you consider this advisable or should I hold out and hope nvda gets its mojo back?
Thanks,
Shane
5i Research Answer:
NVDA is getting very cheap and remains the leader in the sector. While there has been some talk of less capex in the sector, NVDA's software moat offers it some protection. We are not overly concerned about it. That being said, diversification can always be helpful, and we like CSU and SRAD quite a lot. We would be OK with the proposed plan, with the comment that this is a diversification suggestion, and not really a negative call on NVDA. In fact, we think it will bounce hard whenever this crisis ends.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in NVDA, SRAD.