Hello,

 

The most talked about stock of the last 18 months (Nvidia) made headlines again this week, after becoming the world’s most valuable company, owing to a new record-high share price. On reaching $136 a share on Tuesday, Nvidia’s market capitalisation hit $3.34tn. Stalwarts of the top spots in well-known indices, such as Apple and Microsoft, were overtaken by the company that has not until recently become a household name.

 

Nvidia first went public back in 1999 at a price of $12 a share, (considering stock splits since then, this roughly equates to 4 cents a share relative to today’s price). From small beginnings as a fledgling startup in San Jose, California in 1993, the company now represents much of the computational advancements markets are so keen to invest in. Somewhat the exception to the rule, the company has continued to show strong performance in 2024, despite many components of Artificial Intelligence stock indices proving to show mean reversion in the last number of months following a stellar 2023. Whilst many have pondered when Nvidia’s growth will stop, it is important for all investors to be aware of our inherent behavioural biases when it comes to investing. Investors should avoid attempting to time the market and focus on time in the market to maintain a balanced, disciplined approach.

 

As always, if you wish to discuss anything in further detail, please do get in touch.