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Jerome Dodson Comments on NVIDIA

NVIDIA (NASDAQ:NVDA) subtracted 36 basis points from the Fund's return, as its stock fell 8.4% from $179.56 to $164.23. The company makes graphics processing units (GPUs), which are customized chips central to gaming, machine learning and autonomous driving applications. The stock fell after sales to data centers disappointed for the third consecutive quarter. Management also withdrew its financial targets, dampening expectations that a demand recovery was imminent. We see upside to the stock, as demand recovers and NVIDIA integrates its March purchase of computer networking company Mellanox Technologies.

From Jerome Dodson (Trades, Portfolio)'s second-quarter 2019 Endeavor Fund shareholder letter.
This article first appeared on GuruFocus.