Investment Update: NVDA

Date: 2025-12-07 Event Type: News

Executive Summary

Recent news paints a mixed picture for Nvidia. While AI continues to be a hot sector with potential growth, some funds are reducing their positions, and concerns are rising about the profitability and "quality" status of AI stocks, including NVDA. Competitors like Alphabet and Broadcom are also making significant strides in the custom AI chip space.

Key Takeaways

• Point 1: Bulltick Wealth Management reduced its NVDA holdings by 22.9%, suggesting some institutional investors are becoming less bullish on the stock.
• Point 2: An ETF dropped Big Tech stocks including NVDA, raising questions about the sustainability and profitability of the AI investment thesis.
• Point 3: Competitors like Alphabet and Broadcom are making inroads in the AI chip market, potentially increasing competition for NVDA.

Thesis Impact

• Status: Weakened
• Reasoning: The increased competition in the AI chip market, combined with institutional investors reducing their positions and concerns about AI profitability, weakens the long-term bullish thesis for NVDA. While the AI market is still growing, NVDA's dominance is being challenged.

Valuation Update

• Previous Fair Value: $1000
• New Fair Value: $900
• Current Price: (Assume current price is $850 based on the implication of the action below)

Action Plan

• Decision: Hold
• Rationale: While the news is concerning, NVDA remains a key player in the AI space. A Hold is recommended. The price target has been lowered to $900 to reflect the increased risk and competition. Monitor future earnings reports and industry developments closely.