Nvidia's Cloud Gaming

20-MAR-19

For many clients who bought Nvidia last year, you may think the business is struggling. What you may not know is that the share is up 30% so far this year. Over 5 years it is up 815%. But since its highs in September last year it is still down 35%. The share certainly got ahead of itself.

We are not interested in the lumpy earnings created by the crypto boom. We are excited about the long term sustainable future of this company within some really exciting sectors.

Yesterday was the launch of Nvidia's annual convention and some exciting announcements were made.

The most exciting for me was a partnership with Amazon Web Services to supply AWS data centres with T4 chips. Another exciting breakthrough is the adoption of GeForce NOW chip used for cloud based gaming. Apparently the chip has 300 000 beta users and a waiting list of 1 million! Check out Michael's piece on Google and cloud gaming. It looks like the future.

We remain long Nvidia and recommend buying into weakness.