Lead Tech Analyst Beth Kindig was honored to join Darius Dale, CEO and Co-Founder of 42 Macro. Darius has a strong background in macroeconomics and specializes in quantitative economic forecasting and investment strategies.
In the interview, the two spoke about I/O Fund’s idea generation process, where the company stands in the technology cycle, why I/O Fund won’t buy Nvidia now, and what else will support the company’s business. Talk about proactive risk management strategies. A company that outperforms the market.
The full 1-hour video interview can be viewed here.
current technology cycle
In the clip below, Beth explains why the I/O Fund is not a buyer of the stock at this time. She said: “We are not buyers for the next 3-6 months (…) The stock is reaching its target price and (we) intend to wait for the next dip and buy quality stocks at lower price levels ” Therefore, from a technology cycle perspective, now is not the time to buy stocks. ”
Every Thursday at 4:30pm ET, the I/O Fund team hosts a webinar for premium members to discuss how to navigate the broader market and various stock entries and exits. We provide trading alerts and automated hedging signals. The I/O Fund team is one of the only audited portfolios available to retail investors. Click here for more information.
Roll the dice to lower Nvidia:
In an interview, Beth Kindig said: Depending on the technical level, you have the potential to make profits between $120 and $150. Valuations have finally caught up with fundamentals, and Blackwell has about 6 to 9 months to arrive. ”
Earlier this year, Beth Kindig also told Yahoo Finance that Blackwell shipments were “not a concern” to dispel any noise investors had about delays in Blackwell chips. And thanks to Blackwell, we might be able to expect fireworks in early 2025. She also boldly wrote that “information exaggerates Blackwell’s delays,” and recently said that NVIDIA is worth more than $100,000 after predicting years ago that NVIDIA would surpass Apple’s valuation. He said the total would reach $10 trillion.
Despite Bess’ bullish stance, he emphasizes the importance of using technical analysis, as technology investing is sentiment-driven and has proven to yield impressive returns in the past. I/O Fund has a history of acquiring NVIDIA at a low price. The first entry was in December 2018 for $3.15 and provided Nvidia with 9 buy alerts for less than $20. The I/O Fund prepares to repeat the process of buying low for the benefit of premium members who receive real-time trade alerts on every entry.
Nvidia is not Cisco: Why AI is not like dot com
In this interview, Beth Kindig discusses the key differences between the dot-com bubble and today’s AI opportunities. The Internet is open source and democratized. Anyone can easily start a website, but no one owns the internet. AI, on the other hand, is proprietary and companies own their own models. At the moment, the number of companies that can invest in LLM training is very small. This fundamental difference suggests that direct parallels between the dot-com bubble and the current AI boom do not apply.
The company also highlighted earlier this year that a subscription to its NVIDIA Omniverse Enterprise software costs $4,500 per GPU per year, further highlighting how Nvidia can’t compare to Cisco.
Nvidia CFO Colette Kress highlighted the return on investment for cloud service providers from GPU rentals during the company’s first quarter earnings call. “For every $1 spent on NVIDIA AI infrastructure, cloud providers have the opportunity to earn $5 in GPU instant hosting revenue over four years. This integration makes it easy for end customers to get up and running NVIDIA GPU instances in the public cloud.” This explains why capital spending budgets continue to increase.
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Beth Kindig also writes on X.com that Nvidia’s forward P/E ratio in 2022 did not reach Cisco’s heights, even though the stock is up more than 1,000% from its 2022 lows, and compares the two. suggests that it is not accurate to do so.
risk management
Beth also says that diversification is not a good strategy for technology investors. Instead, I/O Fund allocates 20% of its portfolio to promising stocks. He also pointed out that overall market performance is equally important for tech stocks to perform well and ultimately honor stop-loss orders. I/O Fund has reduced its positions in stocks we are long-term bullish on, with the aim of buying at lower levels. In her interview, she gave an example of how the company has actively managed Microsoft.
While Wall Street is concerned about the cost of AI, I/O funds are busy calculating how big the AI opportunity could become in the coming years and how investors can participate. Learn more about I/O Fund’s holdings, including its next plan to acquire Nvidia, and our consistent in-depth research on AI stocks, cryptocurrencies, and more.
Disclaimer: I/O Funds conducts research and draws conclusions about its portfolio of companies. We then share that information with our readers and provide real-time transaction notifications. This is not a guarantee of stock performance and is not financial advice. Please consult your personal financial advisor before purchasing stock in any company mentioned in this analysis. As of this writing, Beth Kindig and I/O Fund own shares in NVDA.
Disclaimer: This is not financial advice. Please consult your financial advisor before purchasing stocks.
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