Nvidia is a 'great company' but not ideal for investment: portfolio manager
One portfolio manager says that while Nvidia Corp. is a high-performing company, it may not be ideal for investment.
Mike Vinokur, a portfolio manager at MV Wealth Partners with iA Private Wealth, said in an interview with BNN Bloomberg on Monday that shares for the chip giant are “not yet” on sale. He said Nvidia is a “great company” with “superior performance with their chips.” However, Vinokur added that doesn’t necessarily mean it is a great company to invest in at the current share price.
“The street assumes that over the next three to five years, they're going to be able to grow their earnings by 20 per cent a year,” he said.
“Eventually, you could see into 2027, 2028 (and) 2029, if they can maintain their lead, performance (and) market share. And of course, if there's still this huge build-out of data centres (and) AI, which presumably there could be, then I believe there's $40 to $45 a share of earnings into the late 2020s.”
However, Vinokur added that from now until then, a lot can change in the tech sector.
To watch the full video with Mike Vinokur, click on the video above the article.