TECH - Veteran Tech Investor Trims Nvidia Stake Despite Recent Rally Voicing Growth Concerns: 'Our Enthusiasm Has Moderated' | Benzinga
A veteran tech investor has been reducing his holdings of NVIDIA Corp. (NASDAQ:NVDA), citing concerns over the company’s growth prospects.
What Happened: Paul Wick, an investor at Seligman Investments, has been gradually decreasing his Nvidia holdings in the past few weeks due to uncertainties surrounding the company’s future earnings, reported Bloomberg.
Wick, who has been investing in the tech sector for nearly three decades, voiced his reservations at a UBS Group AG event in Singapore on Friday. "Our enthusiasm has moderated somewhat over the last one to two weeks," he said.
Wick drew parallels between Nvidia and Cisco Systems Inc.‘s boom during the dot-com bubble. He highlighted the high valuations and lack of recurring revenue as factors that make their businesses inherently riskier.
He also pointed out that Nvidia’s revenue is heavily reliant on its top 10 customers, making it "inherently a ...