hlygrail,
Thanks for that response!
I agree 1000% that Jensen Huang is a rare breed in the corner office! If there were one reason I’d invest in NVDA it’s Jensen and his leadership ability. I’ve been watching him for years, so I have no doubt about his ability to lead the company and make great things happen.
I guess, generally speaking, I don’t disagree with a single thing you said. None of it. In fact, all of it is what has me generally interested in NVDA.
My hesitation is summed up entirely by the fact that they make a physical widget. And most, if not all of what you outlined, held true at one time for IBM, Sun, Cisco, etc. And companies that build physical widgets have more overhead and more risk generally speaking, than software companies.
I’m fairly new here and spend far more time reading than writing on this board. And the thing that attracted me to this board first and foremost was that there seemed to be a bunch of people who, like me, had noticed over time that the software/cloud companies grow incredibly quickly and carry lower risk of customer alienation than hardware companies do. And NVDA flies in the face of that whole premise.
I don’t want to say this board is limited to investing only in software/SaaS/cloud companies, but we do seem to spend a lot of time discussing high growth, incredibly agile, software companies vs. hardware/physical widget makers. The one exception beyond NVDA seems to be ANET, but even they’re moving away from the physical widgets and the real magic sauce is all in their software that can run on anyone’s widgets.
So, while I 100% agree with your statements above, the simple fact that they’re making physical widgets to me implies that their overhead and risk profile is higher, and as a result, their margins and growth will be lower. And, for my limited funds, I don’t think putting my money there is as good as other opportunities where the growth and margins are higher due to lower overhead and risk.
–
Paul - who will likely continue to waffle on NVDA for a while longer…