Liontrust Focused on Nvidia Suppliers Ahead of Earnings

Summary

Clare Pleydell-Bouverie of Liontrust discusses her focus on Nvidia's purchase commitments as a key signal for supply chain tightness. She expects Nvidia's earnings to reaccelerate sharply this year, while trimming positions in Asian memory suppliers like SK Hynix and Micron due to valuation run-up. She also explains why older Nvidia architectures become more valuable over time, supporting the long-term thesis for Nvidia.

• Clare Pleydell-Bouverie highlights Nvidia's purchase commitments as a critical forward-looking metric.
• She believes the biggest risk is supply, not demand, and that Nvidia has locked up key components through 2027.
• Nvidia is expected to grow earnings nearly 100% year over year, with reacceleration in top and bottom lines.
• The fund is trimming Asian memory suppliers (SK Hynix, Micron) after strong price moves.
• Older Nvidia architectures like Hopper are becoming more valuable due to inference use and software optimization.
• The cost of AI is declining rapidly, enabling continued hyperscaler investment.
• Hyperscaler free cash flow will be negative next year, but cloud revenue is inflecting.
• The interview covers Nvidia's competitive moat, Rubin architecture, and the AI build-out cycle.