What to expect from Nvidia's shareholder meeting

our big story is NVIDIA on track for third straight session of declines the slump nearing $300 billion in losses for the tech Giants market cap now this comes ahead of the company's shareholder meeting this week one of those shareholders joining us now we've got Paul Meeks he's co-cio of harvest portfolio management Paul it's great to speak with you and thanks so much for taking the time with us this morning I'm curious from your perspective how you are digesting the movement that we've seen with Nvidia stock over the last couple of days and does it change anything about your thinking when it comes to your Holdings of Nvidia so last thing first doesn't change anything I think what's happened you know the stock has just done so well now there's some talk about Peak data center AI sales and of course that has to happen at some point but I think the near term to even the intermediate term over the next couple years Madison is um you know I don't think is really much uh controversy about that I think what happens on Wednesday when they have their annual shareholders meeting at some point in the presentation and it starts at 9:00 a.m. Pacific time uh Jensen Wang will strut to the stage that was not uh released in the press release for the event but I imagine that's the case it's essentially um industry standard and will probably again articulate the wonderfulness of AI and the key here is to make investors feel comfortable that there is a long runway yet so I think what happens here we have some profit taking some worry about uh Peak sales I think we'll have a reversal and the stock will rebound based on the remarks from CEO Jensen Wang on Wednesday morning Pacific time well it's interesting Paul because I wonder if part of the problem with a company like Nvidia is that the growth has so out haste expectations and it's such a new name for folks to get used to is part of the problem that the math of analysts behind this name is sort of lagging and therefore we don't have a great insight and transparency into nvidia's growth story that's right that's right because if you believe and I think you must believe that the company will continue to upside numbers I mean they have scorched the courtly numbers for about as you know a year and a half ever since the Advent in November 22 of Chad GPT and I think you can probably expect more of the same the interesting thing is the company does not pre-announce numbers because what happens when you start pre-announcing numbers and then you stop you can see what happened a couple quarters ago with super micro smci which is another company in this space so I expect them to continue to beat numbers I expect them to continue to push a narrative which I do believe is true that the a I chip boom will last longer than people will expect because there'll be much more large language model building and then inference uh work at all of the hyperscalers and the other guys that are spending tens of billions of dollars to continue to build out AI infrastructure so that helps give some insight into what you look at to sus out the growth story for NVIDIA but when you see Market moves like the ones we're seeing right now do you take that as a Buy Signal no what I'm looking at is is I'm pretty comfortable with the uh fundamentals and I'm pretty comfortable that there will be a fundamental uh push upwards on the annual meeting later this week Wednesday morning uh what I'm looking now is I do want to buy some more I'm inclined to buy some more but I'm looking for a technical support I had thought it was going to be about the 20-day moving average which is actually where the stock is right now and so so now I'll probably wait to see if it settles lower at the 50-day moving average so comfortable with the fundamentals not comfortable with the technicals and just looking for some technical support where the stock finds support for a couple of days the volume dries up a little bit and then I'm uh inclined to go back in because I think that's the right move uh I don't believe that this is a stock that should be shorted here or even sold here yeah well it's interesting too we've been hearing the question about concentration valuation I feel like that's been the raining cry from a lot of nodes over the past year or so Paul uh to what extent does the valuation piece play into your overall investment Outlook not just your Nvidia Holdings but your overall portfolio when it comes to Tech in general yeah the way I look at it and of course you have to talk about Nvidia because it dominates my sector um is this stock expensive maybe a little bit expensive after uh most recent run before this uh drop off uh but it had not been and if you take a look at probably the closest compare uh here is Cisco Systems building out the internet infrastructure in the very late 90s very early 2000s and that stock got up to over a 100 times earnings and so here we are at 30 40 times earnings is it cheap no is it a a little bit expensive yes is it egregiously expensive no so I actually think that um I'm not so worried about the valuation and I'm looking for that uh ethnical stability before I go back and add to the position so of course my position is already quite large all right we're going to have to leave it there but thank you so much Paul for joining us really appreciate it that was Paul Meek CIO and also a shareholder in Nvidia