Analysis: NVDA

After you receive this Alert, we will be buying 50 shares of Nvidia (NVDA) at roughly $172.39. Following the trade, NVDA will represent 1.34% of the portfolio.

We will be adding to our position in Nvidia, picking up shares into today's weakness. After making a 2019 high of $185 last Thursday, the stock has retreated back to within a few dollars of the level from last Monday's initiation, a price in which we felt was opportune to buy into this semiconductor company at the forefront of machine learning and artificial intelligence. We'll use today's weakness to scale deeper into our position, which we are repurchasing after making several sells at $265+ in 2018 (see our Alert here for more information).

At its current level, shares are trading in between our initial purchase price and last Tuesday's upbeat Investor Day event that featured several key updates across Nvidia's favorable end markets, hardware dominance, Cuda platform, and "network." We provided takeaways from the event in our Alert here and believed the bullishness of commentary is very positive going forward. Lastly, we believe the cloud (i.e., data center) growth will be even more of a factor in upside following the acquisition of Mellanox, which thanks to its low latency "InfiniBand" technology, provides Nvidia the ability be a more integral player in the buildout of data centers by working to both accelerate server subsystems via GPU-acceleration and accelerate the data center overall by "tying together" the multiple subsystems and allowing them to operate as a single cohesive unit.