NVDA is more of a hardware play and not a SAAS mode….meaning less recurring revenue and less guaranteed future deferred revenue. They have also gotten quite large at a $100b market cap…(they were up over $180B back in August!). They will do fine over time, but I don’t see them growing 10x quickly. All that said, the stock price has been cut in half from roughly $300 to $150/share. Some will argue they have already taken the hit and will resume an upward trend at this point. For me, I see them getting back to maybe $200, but compared to other stocks potential, that is only 30% vs. 300%… My favorites right now are NTNX, TWLO, AYX and MDB…probably in that order. I will be selling just a small portion of AYX next week, but only because my position in AYX has ballooned up to over 16% of my total portfolio and I’m looking at 200% gains in it. Just making a micro adjustment, but it will still be my biggest position.
Short answer…no. I don’t believe it is a market trend. Companies supporting cloud analytics, data Mgmt, infrastructure and security are critical to every companies presence and success. 20+ bankruptcies in the last couple years of large retail stores like Kmart, Sears, JCPenny, OSH, …etc, etc. This is a trend that will continue for those who do not adopt cloud infrastcutue and data….IMHO.
