All eyes are on Nvidia Corp. this week as the company prepares to announce its latest quarterly results. With a dominant position in the market for graphics processing units (GPUs) used in datacenters for artificial intelligence (AI) technology, Nvidia has been riding the wave of AI advancements. However, portfolio manager Ken Laudan of the Buffalo Large Cap Fund suggests that there are other stocks worth considering in addition to Nvidia.
The Buffalo Large Cap Fund has earned a four-star rating within Morningstar’s “Large Growth” fund category and has performed in the top 15% among 1,119 funds over the past three years. Although Nvidia is currently the fund’s fifth-largest holding, making up 4.6% of the portfolio, Laudan believes that there are additional opportunities in network communications, data storage, and power management companies.
While Nvidia’s quarterly sales are expected to triple compared to the previous year, analysts predict a more modest 13% increase from the previous quarter. This indicates a slowdown in sequential growth rates. Nonetheless, Laudan anticipates another outstanding quarter for Nvidia, surpassing consensus estimates due to the high demand for GPUs by datacenter operators.
Aside from Nvidia, Laudan highlights other AI enablers, such as Taiwan Semiconductor Manufacturing Co. and the big three cloud services providers, including Microsoft Corp. These companies play a crucial role in advancing AI technology, and their stocks present potential investment opportunities.
As AI continues to reshape industries, it becomes increasingly important to diversify investment strategies and consider other companies driving this transformation. While Nvidia remains a valuable player in the AI market, keeping an eye on these three AI enablers may provide additional avenues for riding the wave of AI growth.
Frequently Asked Questions:
Q: What is Nvidia’s position in the market for graphics processing units (GPUs)?
A: Nvidia has a dominant position in the market for GPUs used in datacenters for artificial intelligence (AI) technology.
Q: Who suggests that there are other stocks worth considering in addition to Nvidia?
A: Portfolio manager Ken Laudan of the Buffalo Large Cap Fund suggests that there are other stocks worth considering.
Q: How has the Buffalo Large Cap Fund performed?
A: The Buffalo Large Cap Fund has earned a four-star rating within Morningstar’s “Large Growth” fund category and has performed in the top 15% among 1,119 funds over the past three years.
Q: Is Nvidia the largest holding in the Buffalo Large Cap Fund?
A: No, Nvidia is currently the fund’s fifth-largest holding, making up 4.6% of the portfolio.
Q: What are the other areas of opportunity mentioned by Laudan?
A: Laudan believes that there are additional opportunities in network communications, data storage, and power management companies.
Q: What is the expected increase in Nvidia’s quarterly sales compared to the previous year?
A: Nvidia’s quarterly sales are expected to triple compared to the previous year.
Q: What is the predicted increase in Nvidia’s quarterly sales from the previous quarter?
A: Analysts predict a more modest 13% increase from the previous quarter, indicating a slowdown in sequential growth rates.
Q: Which companies are highlighted by Laudan as AI enablers?
A: Laudan highlights Taiwan Semiconductor Manufacturing Co., Microsoft Corp., and the big three cloud services providers as AI enablers.
Q: Why is it important to diversify investment strategies in the AI market?
A: As AI continues to reshape industries, diversifying investment strategies and considering other companies driving this transformation is important.
Definitions:
– Graphics Processing Units (GPUs): These are specialized electronic circuits designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer for output to a display.
– Datacenters: These are centralized locations used for the storage, management, and dissemination of data and information.
– Artificial Intelligence (AI): This refers to the simulation of human intelligence in machines that are programmed to think and learn like humans, enabling them to perform tasks that typically require human intelligence.
– Portfolio Manager: This is a professional who is responsible for making investment decisions and managing an investment portfolio on behalf of individuals or institutions.
– Network Communications: This refers to the technologies and processes used for transmitting and exchanging data between devices or systems within a network.
– Data Storage: This refers to the processes and technologies used for storing and organizing data for later use or retrieval.
– Power Management: This refers to the techniques used to optimize the use of power resources, such as electricity, in a system or device.
Suggested Related Links:
– Nvidia
– Taiwan Semiconductor Manufacturing Co.
– Microsoft Corp.
The source of the article is from the blog papodemusica.com