January 7, 2022
Livewire Markets has scoured Australia for the country’s finest fund managers who share their highest-conviction call for the year ahead. Nick Griffin, CIO Munro Partners has chosen Nvidia. In Nick’s words:
The stock we’ve become more confident with over the last few years is the company that’s powering AI – Nvidia. Nvidia is one of our best-performing stocks this year and we think it will also be our best next year.
We are at the moment of exponential uplift in AI technology. This is happening because every company in the world is effectively becoming an AI company. They are recognising they have large data sets that they need to process very quickly. And if they do that, they keep their customers.
Nvidia is the AI enabler for the planet. It is a classic hardware-software model, very similar to Apple at the time. And ultimately, we see exponential growth ahead for this company. We think the earnings can grow more than five times over the next decade and ultimately, the share price should follow that.
While it was a really good performer this year, it’s still really misunderstood out there. That’s probably our best big-cap idea into 2022.