Blogs -Nvidia Throwback: An Example of Why Conviction Matters for Stocks

Nvidia Throwback: An Example of Why Conviction Matters for Stocks


February 23, 2023

author

Beth Kindig

Lead Tech Analyst

The video below was originally recorded on August 8th 2022. You can view the full clip here.

Last August, Nvidia had a $2.5 billion revenue miss due to gaming and crypto mining related weakness. This caused the stock to selloff (8%) in one day. Many pundits were questioning if Nvidia could overcome the gaming segment weakness given Ethereum’s Merge to Proof of Stake would permanently reduce demand for gaming GPUs.

Charles Payne of Fox Business News asks Beth Kindig of I/O Fund if she still plans to hold the stock given the crypto mining surprise.

Her answer is fairly simple: “It’s a tough day for Nvidia investors but in the long run it’s not going to matter. We hold the stock for its lead in artificial intelligence. Anything outside of that thesis is not important to us.  To be contrarian, data center is going to be up 61%, so for AI investors such as myself, we are right on track.”

Below is the I/O Fund trading history on Nvidia which shows why it’s important to have conviction in tech stocks. Due to having this conviction, the I/O Fund bought Nvidia at the low in October at exactly $108 with a real-time trade alert sent to their research customers. 

You can view follow-up analysis on Nvidia here:

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