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Nvidia's market is expected to double in five years

Nvidia's market is expected to double in five years

Nvidia shares are trading at “reasonable prices”, despite last year's strong rally, Casa de Investimentos CEO said today, at the annual client meeting.

Emilia Vieira, CEO of Casa de Investimentos, said on Saturday that the strong rise in Nvidia shares is supported by the technology's growth prospects.

“With the capacity that Nvidia has, it is transacting at prices that seem reasonable to us. Its market is expected to double in the next five years,” the CEO said, adding that Casa de Investimentos should retain the share in its portfolio.

Technology stocks reached an all-time high, reaching a staggering 255 billion euros in value in a single day, last Thursday. This strong rise, which broke the record for daily valuations on Wall Street, reinforced concerns among some analysts and investors about a possible “bubble” in technology. However, Emilia Vieira defended that Casa de Investimentos' strategy is based on analyzing the fundamentals of the companies it invests in and not on cyclical issues and that it had already invested in Nvidia for several years, including a period in which the stock had fallen in value. “What we see now is what we actually expected at the time,” he explained.

Moreover, the CEO emphasized that NVIDIA is “led by a visionary and has management that inspires confidence in us.”

The meeting brought together 900 people at the Altice Forum in Braga

Casa de Investimentos holds its annual client meeting today, at the Altice Forum in Braga, with around 900 people participating. During this meeting, the results of the organization’s portfolio for the year 2023 were presented, with a strong increase of 34 percent, which made it possible to more than compensate for the decline it suffered in 2022, due to the decline in stock markets at the end of that year. . Nvidia's contribution to increasing the value of this portfolio was five percentage points, according to Casa.

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Emilia Vieira reiterated the Foundation's commitment to the philosophy of value investing, considering that this method, in the long term, guarantees higher returns than other methods of purchasing stocks as well as those from other asset classes. “We are not speculators or storytellers,” said the founder of Casa de Investimentos. “Owning shares in a company means owning a business, not being a trader,” he said.

It is worth noting that the technology in the semiconductor sector recorded a 265% increase in revenues in the last quarter of 2023, reaching $22.1 billion (€20.4 billion) based on its artificial intelligence business. In the third quarter, the increase reached 22%.

Looking at the total for 2023, the company added $60.9 billion (€56.3 billion) to revenue, an increase of 126%.

This measure benefited from the technology sector's high demand for increasingly complex AI models, which pushed Nvidia to consolidate its position as a leader in this sector. The company expects strong demand to support its business this year, although it acknowledges potential supply-side constraints in some AI-related chips.

US restrictions on the sale of semiconductors to China will also impact the sector's prospects for this year, although Nvidia officials are talking about “reshaping” the business in the country.