Nvidia Stake Trimmed by Veteran Tech Investor on Business Risks.

INVESTORS; GENERATIVE artificial intelligence; CONSUMERS; BUSINESS enterprises; ARTIFICIAL intelligence

Paul Wick, a veteran tech investor at Seligman Investments, has been reducing his holdings of Nvidia Corp. due to concerns about the company's earnings growth prospects. Wick compared Nvidia to Cisco Systems Inc. during the dot-com bubble, citing lofty valuations and a lack of recurring revenue as factors that make their businesses riskier. Nvidia relies heavily on its top 10 customers for revenue, making it riskier than companies like Microsoft and Google with a more diversified customer base. Despite his reservations, Nvidia remains one of the top holdings in Wick's fund, which has outperformed its peers in recent years. [Extracted from the article]

Copyright of Bloomberg.com is the property of Bloomberg, L.P. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)