For
many
investors,
the
million-dollar
question
is
how
far
Nvidia
can
go
or
whether
it
can
sustain
its
dramatic
growth.
Nick
Griffin,
chief
investment
officer
at
Munro
Partners,
has
invested
in
Nvidia
since
2019
—
but
even
he
is
taken
aback
by
the
stock’s
astronomical
run
so
far.
“I
have
never
seen
anything
like
this
in
terms
of
the
dramatic
earnings
acceleration
it’s
displaying
…
it’s
never
happened
before
to
a
company
of
this
size,
and
it’s
unprecedented,”
he
told
CNBC’s
”
Street
Signs
Asia”
on
Tuesday.
Nvidia
reported
fiscal
first-quarter
earnings
last
Wednesday
that
beat
expectations
for
sales
and
earnings
on
the
artificial
intelligence
boom,
and
its
shares
passed
$1,000
for
the
first
time.
It
closed
at
$1,064.69
last
Friday.
Nvidia’s
outlook
Griffin
pointed
to
industry
estimates
that
showed
Nvidia
is
set
to
sell
$100
billion
of
its
AI
accelerators
in
the
next
12
months.
AI
accelerators
are
processors
designed
to
accelerate
AI
or
machine
learning
applications.
“So
that’s
hyperscalers,
enterprise
sovereigns
—
all
buying
$100
billion
worth
of
this
equipment
so
those
people
truly
believe
that
this
product
will
be
transformational.
Otherwise,
they
wouldn’t
spend
$100
billion
and
they’re
expecting
to
get
probably
double
that
back
in
revenue
at
some
point
in
the
future,”
he
said.
He
added,
“The
simple
way
to
think
about
this
is:
Are
you
using
these
products
every
day?
…
would
you
be
prepared
to
pay
for
them?
And
the
answer
is
we
do
use
them
every
day
in
our
business.”
Griffin
said
that
he’s
seeing
use
cases
in
“lots
of
different
verticals,”
citing
examples
such
as
summarizing
meetings,
security
threat
detection
and
cancer
detection.
“Proper”
AI
assistants
on
smartphones
are
another
possible
use
case.
“So
I
can
see
quite
literally
thousands
and
thousands
of
applications
here,
and
many
of
which
I
would
probably
pay
for
over
the
next
three
to
five
years,
which
means
this
investment
is
probably
sustainable,”
he
said.
But
the
stock’s
performance
is
“definitely
not
going
to
be
linear,”
thanks
to
“overexcited”
investors,
Griffin
cautioned.
“But
…
we’re
year
one
of
this
investment.
So
there’s
a
plausible
argument
that
it
will
run
for
a
number
of
years
from
here.
Not
just
one
year
of
hype,”
he
said.
“If
Nvidia
keeps
growing
at
this
rate,
it’s
going
to
become
the
biggest
company
in
the
world
—
we’ve
been
saying
that
for
years
but
didn’t
think
it
would
happen
this
quickly,”
he
added.
In
addition,
he
said,
there’s
another
benefit
of
holding
the
stock:
“Nvidia
is
growing
faster
than
all
the
Mag
Seven,
yet
trades
at
roughly
the
same
multiple
of
around
30
times
earnings.”
Nvidia
is
currently
the
largest
holding
in
Griffin’s
Munro
Global
Growth
fund.
The
fund
has
spiked
around
30%
in
the
past
year
till
April
2024.
In
comparison,
the
S
&
P
500
was
up
around
20.7%
in
the
same
period,
and
the
MSCI
World
Growth
Index
was
up
24.21%.
Griffin
also
manages
the
Munro
Concentrated
Global
Growth
Fund
and
the
Munro
Global
Growth
Small
and
Mid
Cap
Fund.
He
has
been
managing
funds
for
more
than
15
years,
with
a
focus
on
growth
equities.
Here
are
the
buy
ratings
and
average
price
target
that
analysts
give
the
stock,
according
to
LSEG
data.
