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We added Nvidia to our Vestact-recommended stock portfolio in New York in March 2017. We rated their technological prowess, their management team under CEO Jensen Huang, and their dominant position in chips for gaming and graphics computers.
At that point they traded at a (split-adjusted) share price of $25.38. It's done really well since then, broadening its business into chips that power a much wider range of high-end computers
Last night, Nvidia rose by over 24% in one day, closing at a new all-time high price of $379.80 per share. That happened because they projected revenue of $11 billion in the quarter from now to July, thanks to massive orders for chips from tech giants building generative AI apps.
At the close of trading on Wednesday, Nvidia's market capitalisation was "only" $755 billion. By the close last night (Thursday), that number was $939 billion. It's now the fifth most valuable fully-listed company in the world.
To do well in a managed share portfolio, you have to own concentrated positions in stocks that outperform the general index.
That $180 billion value uplift yesterday was enjoyed, proportionally, by all of its existing shareholders, depending on the number of shares they own. That includes all of us! I'm very happy.
