John Vinh

NVDA has underperformed year-to-date while memory stocks like MU are up ~50%. Vinh notes NVDA has secured a workaround for China, contributing $3-4 billion in revenue, and faces no viable competitor to its GPU. The underperformance is a positioning issue, not a fundamental one. As investors rotate back to AI leaders ahead of earnings, the valuation gap between NVDA and the high-flying memory sector will close. The "China risk" is now better understood and priced in. LONG NVDA and MU (as part of the broader AI hardware trade). Disappointing guidance on Wednesday or tighter export controls from the Trump administration.

NVDA has underperformed year-to-date while memory stocks like MU are up ~50%. Vinh notes NVDA has secured a workaround for China, contributing $3-4 billion in revenue, and faces no viable competitor to its GPU. The underperformance is a positioning issue, not a fundamental one. As investors rotate back to AI leaders ahead of earnings, the valuation gap between NVDA and the high-flying memory sector will close. The "China risk" is now better understood and priced in. LONG NVDA and MU (as part of the broader AI hardware trade). Disappointing guidance on Wednesday or tighter export controls from the Trump administration.