Nvidia, a technology company, recently hit a market capitalisation of USD1 trillion after a remarkable set of earnings upgrades. Its data centre revenue, the largest part of its overall revenue, is expected to double within the next 90 days. However, revenues have been volatile, with Nvidia’s gaming revenues having halved last year, likely due to changes in crypto-currency. While Nvidia is currently trading on 45 times next year’s earnings, it may appear to be much cheaper if it can double its revenues in the upcoming months. In this week’s MB Fund Podcast, Nucleus Wealth’s Chief Investment Officer Damien Klassen and Senior Financial Adviser Samuel Kerr discuss whether Nvidia and AI stocks are currently experiencing a boom or a bubble.
Nvidia is a technology company best known for its graphics processing units (GPUs), primarily used for gaming, but which can also be applied to data processing for artificial intelligence (AI) and machine learning. Nvidia’s GPUs, Tensor Cores and software make it easier for data scientists to create large neural networks.
Damien Klassen is the Chief Investment Officer of Nucleus Wealth. Klassen leads the investment team and manages the portfolio of Nucleus Wealth’s clients. He has extensive experience in strategy development, risk management, and investment research, having worked in various positions in the finance industry for over 20 years. Samuel Kerr is a Senior Financial Adviser at Nucleus Wealth with more than 10 years of experience in financial advisory services. He assists clients in managing their investments, evaluating their portfolio, and creating retirement strategies.
