$NVDA has been on a tear since the middle of March, rising from a low of $159 to a current price of over $490. Currently, it occupies one of the largest positions in my portfolio. Here are 10 reasons to be bullish on $NVDA!

(Thread)

(1) AI Chips - $NVDA is a pioneer in the AI hardware market, providing GPUs to $AMZN, $GOOG, & $MSFT among others. In their most recent quarter, revenue from these chips increased 80% to $1.1B. The market for these chips alone is expected to be $80.2B by 2027.

(2) Self-Driving Technology - $NVDA recently signed a deal to be the premier provider of autonomous driving technology in all Mercedes-Benz cars. Starting in 2024, this technology will be used in all Mercedes cars. The software will also be upgradable, similar to $TSLA.

(3) Gaming - $NVDA recently announced to soon-to-be debut of brand new gaming GPUs. Already a leader in this market, $NVDA ‘s gaming business could become even more profitable with this new technology.

(4) Optionality - As suggested by points 1-3, $NVDA has a ton of optionality. They are at the forefront of some of today’s fastest growing industries, including AI, autonomous driving, gaming, and 5G. Thus, as these industries continue to rapidly expand, so will $NVDA.

(5) Strong Balance Sheet - $NVDA also has a very strong balance sheet with lots of cash, low levels of debt, and positive, growing free cash flow. Gross margins are over 60%, and the ROE and EPS are both high.

(6) Company Culture - CEO Jen-Hsun Huang is rated as one of the best and most admired CEOs in the world. Remarkably, 99% of $NVDA employees approve of his leadership, and people love working for him, giving @nvidia 4.7/5 stars.

(7) Brand - $NVDA is ranked as one of Fortune’s World’s Most Admired Companies. In addition to a brilliant corporate social responsibility arm, $NVDA is widely recognized and respected within every industry it operates in.

(8) Revenue Growth - Revenue has consistently been growing for $NVDA at roughly 40%, even during Q1 of this year. For a market leader that is also just getting started in some lucrative industries, this is an impressive figure.

(9a) Moat - $NVDA exhibits strong network effects and high switching costs. As they are working with AI products, their data and AI capabilities will continue to improve as people use their products. Similarly, $NVDA makes what are widely considered as some of the best...

(9b) and most advanced chips in the world. Switching away from this is possible, as $AAPL has shown. However, for companies like Mercedes who are integrating their entire autonomous driving system with $NVDA, the switching costs are high.

(10) Stock Peformance - An easily understood yet powerful metric, $NVDA has annihilated the market over the past couple of years. This history of outperformance and beating expectations is encouraging as an investor.

$NVDA is an incredible company with tons of room for growth and one of my biggest holdings.

Thanks for reading. Any comments, thoughts, or questions are appreciated!

Long $NVDA!