NVIDIA (NVDA, Financial) actually finished the quarter with a positive absolute return as the Company reverted to solid revenue growth of +41% after a few quarters of declines. Most of the revenue growth was driven by rapid uptake of NVIDIA’s datacenter processors, especially for training natural language processing models that are being utilized for search engines, virtual personal assistant development, customer service chatbots, and other real-time conversational artificial intelligence (AI) applications. We think NVIDIA should continue to see strength in datacenter demand as well as gaming, despite the effects of COVID-19, but will monitor its valuation relative to opportunities that have more pessimistic embedded future growth assumptions.
From David Rolfe (Trades, Portfolio)'s Wedgewood Funds first-quarter 2020 shareholder letter.
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