Lead Tech Analyst Beth Kindig had the pleasure of joining Darius Dale, CEO and co-founder of 42 Macro. Darius has a strong background in macroeconomics and specializes in a quantitative economic outlook and investment strategy.
In the interview, the two of them discuss the I/O Fund’s idea generation process, outlook for where we are in the tech cycle, why the I/O Fund is not buying Nvidia right now, and other active risk management strategies that help our firm to outperform the market.
You can watch the full 1-hour video interview here.
Current Tech Cycle
In the clip below, Beth explains why the I/O Fund is not buyers of stocks at the moment. She stated: “Over the next three to six months, we are not buyers […] of the stocks are reaching our price targets and [we are] waiting for the next sell-off to buy quality names at lower price levels. So, in terms of the tech cycle this is not a time that we are buying stocks.”
Every Thursday at 4:30 pm Eastern, the I/O Fund team holds a webinar for premium members to discuss how to navigate the broad market, as well as various stock entries and exits. We offer trade alerts plus an automated hedging signal. The I/O Fund team is one of the only audited portfolios available to individual investors. Learn more here.
Rolling the Dice on Getting Nvidia Lower:
In the interview, Beth Kindig stated: “We ultimately think you can get Nvidia lower than where it is trading now. We are likely to take gains between $120 and $150 based on technical levels. The valuation has finally caught up to the fundamentals, and we have about six to nine months before Blackwell arrives.”
Earlier this year, Beth Kindig also spoke on Yahoo Finance that Blackwell Shipments are ‘not a concern’ to clear the noise that investors had about the delay in Blackwell chips. Also, we could expect fireworks in the first half of 2025 due to Blackwell. She also boldly wrote The Information was exaggerating the Blackwell delay, and recently stated Nvidia would reach a $10 trillion market cap following her prescient call years ago that Nvidia would surpass Apple’s valuation.
Despite Beth’s bullish stance, she stresses the importance of using technical analysis, as tech investing is sentiment-driven and has proven to have stellar returns in the past. I/O Fund has a history of buying Nvidia at low prices. The first entry was $3.15 in December 2018 and provided 9 buy alerts below $20 for Nvidia. The I/O Fund is preparing to repeat the process of buying low for the benefit of their Premium Members, who receive real-time trade alerts for every entry.
Nvidia is NOT Cisco: Why AI is Nothing Like Dot-Com
In this interview, Beth Kindig explains the key difference between the dot-com bubble period and the current AI opportunity. The internet is open source and democratized. Any person can easily put up a website and nobody owns the internet. On the other hand, AI is proprietary and the companies own their own models. The number of companies that can invest in training LLMs are very few, at this time. This fundamental difference suggests that a direct parallel between the dot-com bubble and the current AI boom is not applicable.
The company also highlighted earlier this year that the NVIDIA Omniverse Enterprise software subscription is $4,500 per GPU per year, which further highlights the point that Nvidia cannot be compared to Cisco.
