Investor reveals why he ‘couldn’t resist’ buying Nvidia stock during sell-off
A prominent investor has revealed why he couldn’t resist buying Nvidia stock during the recent sell-off, despite the company’s struggles in the cryptocurrency market.
Billionaire investor and CEO of Oaktree Capital Management, Howard Marks, explained in a recent letter to clients that he took advantage of the opportunity to buy Nvidia stock at a discounted price. Marks stated that he believes the company’s fundamentals remain strong, despite the recent decline in its stock price.
Nvidia’s stock has been under pressure in recent months due to a decline in demand for its graphics processing units (GPUs) in the cryptocurrency mining market. The company’s revenue has been impacted by the decline in cryptocurrency prices, which has led to a decrease in the demand for its GPUs.
However, Marks believes that Nvidia’s strengths in the gaming and artificial intelligence markets will help the company to recover from the current downturn. He stated that the company’s “strong fundamentals” and “leading position” in the gaming and AI markets make it an attractive investment opportunity.
Marks also noted that the sell-off in Nvidia’s stock has created a “buying opportunity” for investors. He stated that the company’s stock price has fallen to a level that is “unjustified” by its underlying fundamentals, making it a good time to buy.
In conclusion, Howard Marks believes that Nvidia’s stock is a good investment opportunity due to its strong fundamentals and leading position in the gaming and AI markets. He also believes that the recent sell-off has created a buying opportunity for investors.
