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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