you were in Nvidia before it was cool you were buying it at four dollars back in 2014 you rode the wave on this particular stock Cathy to 330 back in 2021 but the recent rally you've missed because the flagship Arc Innovation ETF you sold out of your main stake back in January why yes so if you were very positive on Nvidia we have been very positive on Nvidia we bought it down when it hit nearly a hundred dollars uh in the fourth quarter last year and and then it tripled as some of our other uh AI oriented stocks Stood Still so you know we're looking at believe it or not many people do not believe this about us we're looking at relative valuations of uh names in the AI space and we were looking at Nvidia 25 times sales which is where it is and Tesla which is probably the biggest AI story out there is that six times earnings uipath yesterday uh I mean not earning six-time sales uipath yesterday uh reported it is a beautiful AI play it too is at six time sales and as far as Nvidia goes there are a few reasons we we take some pause it still meets our minimum hurdle rate of return so 15 at a compound annual rate over five years and so you'll see it in some of our more specialized portfolios yeah we're we're looking for uh better values but the the risks to Nvidia would include cyclical when I hear shortages shortages shortages about gpus or anything I begin to think about about the cyclicality of a group competition Tesla is coming up with its own chip meta platforms Google their own chips for more specialized large language models and and then the tech itself we're learning from meta platforms the Llama model is able to do with less computing power but more data yeah it's able to deliver better models so there are puts and takes here as there always are
