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AMA: HOW TO INTERPRET THE NVIDIA SPIKE

2 MIN WATCH

July 6, 2023

AMA: How to interpret the Nvidia spike

Headshot of Matt Malone, head of investment at Opto Investments
Private Assets

Key takeaways

  • The easiest way to interpret the recent spike in Nvidia’s share price is that people are really excited about the future of AI. And they should be, as it could potentially be a transformative technology.
  • Nvidia is a high-margin business with significant barriers to entry, but the metrics suggest current valuations may be unsustainable.
  • Investing via public markets may give you access to the “picks and shovels” of the AI gold rush, but private markets may offer better access to real innovation in the space.

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Important disclosures

Lonsdale Investment Management, LLC (the “Firm”) is a wholly-owned subsidiary of Opto Investments, Inc. and is an SEC-registered investment advisor. Registration with the SEC does not imply a certain level of skill or training. SEC registration does not mean the SEC has approved of the services of the investment adviser.

This website is operated and maintained by Opto Investments, Inc. Certain products described herein and institutional relationships may involve investment advisory services provided by the Firm. This website is presented for financial institutions and investment professionals only and is not intended for individual consumers or retail investors, unless specifically noted.

Unless otherwise indicated, commentary on this site reflects the personal opinions, viewpoints and analyses of the author and should not be regarded as a description of services provided by the Firm or its affiliates. The opinions expressed here are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any security or advisory service. It is only intended to provide education about the financial industry. The views reflected in the commentary are subject to change at any time without notice. While all information presented, including from external, linked or independent sources, is believed to be reliable, we make no representation or warranty as to accuracy or completeness. We reserve the right to change any part of these materials without notice and assume no obligation to provide updates. Nothing on this site constitutes investment advice, performance data or a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

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