Some early Australian investors of the AI darling were positioned for a sharp sell-off in the shares this week, including Munro Partners, but a re-acceleration in the chipmaker’s earnings is also in their sights.
Already a subscriber?Some of Nvidia’s earliest backers in Australia are repositioning for a period of lower returns from the artificial intelligence darling amid scepticism over whether it can fulfil the lofty earnings growth baked into its $US3.1 trillion valuation.as the largest position in its global growth fund, slashed its stake by a third heading into the chipmaker’s second quarter earnings, expecting some “froth” to come out of the stock.
Semiconductor stocks throughout Asia were also hit, with South Korean memory maker SK Hynix dropping as much as 6.8 per cent. Japanese tester maker Advantest fell 3.6 per cent and leading foundry Taiwan Semiconductor Manufacturing dipped 2.8 per cent. “From here, Nvidia is expecting growth of 65 per cent in Q3 and 40 per cent in Q4 and that’s as much as we know,” Mr Pollak said. “That doesn’t mean there’s not a re-acceleration down the track … it just means the conclusion of this initial chapter of AI rollout and Nvidia’s vital part in it is understood, but the book is utterly silent on what the next chapter looks like.
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