Nvidia: Tariffs Have Strengthened My Conviction (Rating Upgrade To Strong Buy)

Summary

• Treasury Secretary Scott Bessent discussed the impact of re-shoring plans on the market and strategies to make it work in recent rounds of interviews.
• Year-to-date performance of Nvidia Corporation has been terrible, now the 3rd worst Mag 7 name year to date, squarely in a bear market.
• Forward earnings projections suggest continued growth, with some speculation by the market due to hints of CAPEX pull back in data centers.
• AI is the ultimate tool-set touted by Bessent as a means to re-shore cheap human capital manufacturing to more expensive developed countries like the U.S.