Dan Loeb

Nvidia remains attractive because it trades at 15x 2027 or 12x 2028 earnings for the most dominant, fast-growing company at its size. Valuations are not bubbly like the dot-com era; cash flows are enormous and capex is being funded off balance sheets. There is still a catch-up trade available as AI adoption is just scratching the surface.

The entire AI semiconductor supply chain, including semiconductors, semi-cap equipment, memory, and hyperscalers, is the most attractive sector today. Fundamentals are super strong, capex is being reinvested with high returns, and the multi-year build-out is just beginning. This is where the bulk of Third Point's capital is invested.

Danaher is a high-quality business with a superb operating system (DBS) that drives continuous improvement. Third Point sold during COVID-related distortions but recently re-entered on the pullback, albeit in a small way. The company's ability to shift from general industrials to healthcare and its culture of accountability make it a long-term quality compounder.