This was around 18 months after ChatGPT was released, and the artificial intelligence (AI) movement was in full swing. The simple answer? A £5,000 stake would have turned into £29,135. Good going, but here’s the funny thing…

At that time, folks were viewing Nvidia as expensive. The objections were railing in: surely the bull run can’t continue? The surge in orders for the firm’s chips can’t last, can it? I even stated in that very article: “the shares look a little toppy”. Well, guess what happened next?

Share price moves

In simple terms, the doubters were made to eat their words. The share price more than doubled in just over two years. Nvidia became the world’s largest company with a market capitalisation that has now surpassed $5trn. That went well, didn’t it?

That same stake would have gone into the stratosphere. From 30 November 2022 until today, the share price has grow 1,166%. A £5,000 investment in Nvidia shares on the day ChatGPT was released is now worth £63,324. Incredible stuff.

Why did it keep surging? Simply, there was a clamour for Nvidia’s chips, and many of the world’s tech titans didn’t want to get left out. Untold billions were invested in the AI revolution. The gold rush continued and Nvidia was selling the related picks and shovels.

What’s next?

Here’s the important question: what’s coming next? Could Nvidia keep offering staggering returns for investors who take the plunge in June? Or has the boat been well and truly missed here?

On the one hand, the valuation still looks reasonable. A forward price-to-earnings ratio of 24 isn’t crazy for a company spearheading a potentially revolutionary technology. And the incredible growth shown by Nvidia in recent years – making an enviable habit of smashing analyst expectations time after time – seems like it should justify a premium on the share price.

On the other, the buying frenzy has been sparked by a few big names ploughing in billions to get a first-mover advantage in the revolution. The money spent is likely to subside at some point. We may even see the ‘AI bubble’ that many have been predicting too.

On balance? We are very much in uncharted territory with AI and Nvidia’s very much at the centre of that. While risks abound given the uncertainty, it’s undeniable Nvidia will play a key role in the years to come. That could mean the share price continues its rapid ascent. I think the stock’s worth considering.

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

John Fieldsend owns shares in Nvidia.

The post £5,000 invested in Nvidia shares when ChatGPT was released is now worth… appeared first on The Twelfth Magpie.

Now, that price target represents a potential gain of nearly 130% from here, meaning that investors could more than double their money if it is achieved. This raises the question: are the shares worth considering today?

Baird’s bull case

Baird’s previous target for Nvidia was $300. However, late last month, the firm hiked it to $500 (while maintaining an Outperform rating on the stock).

Its bull case is based around the idea that Nvidia can continue to see strong growth amid the shift to AI inferencing (the process of a trained AI model applying its learned knowledge). Baird expects the adoption rate of Nvidia’s new AI chip platform Vera Rubin at frontier model companies to exceed that of its previous platform Blackwell.

Is $500 realistic?

Now analysts’ price targets need to be taken with a grain of salt. Often, they don’t come to fruition.

In this case, I’d be surprised if Nvidia was to hit $500 in the next 12 months. Looking further out though, I think it could get there in the next two to three years.

I’m bullish on Nvidia

One reason I’m bullish here is that the company is aggressively moving into the central processing unit (CPU) space (to date, most of the company’s AI success has been due to graphics processing units or ‘GPUs’). This is a big deal because agentic AI depends heavily on CPUs.

Note that Nvidia expects the performance of its Vera CPUs to significantly exceed that of x86 CPUs made by the likes of Intel and AMD. As a result, it sees them opening up an incremental $200bn total addressable market.

Another reason I’m bullish is that Nvidia’s valuation today is very low relative to the growth the company is generating. At present, the forward-looking price-to-earnings (P/E) ratio here using next year’s earnings forecast is around 17.

Yet earnings next year are projected to rise 42% year on year. So, we have a price-to-earnings-to-growth (PEG) ratio of just 0.4 (a ratio under one suggests that a stock is cheap).

A compelling proposition

Put this together and we have a company growing at a spectacular rate (85% revenue growth last quarter) with further growth potential and a low valuation. To my mind, that’s a strong set-up.

Of course, there are risks to the investment case. Increasingly, Big Tech companies are making their own AI chips so this is a situation to monitor.

A major slowdown in AI spending is another risk. This scenario could see Nvidia’s growth stall.

I’m bullish overall, however, and believe the stock is worth considering at current levels (I’ve actually been adding to my position recently). Nvidia isn’t the only AI stock I like the look of right now, though…

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Edward Sheldon owns shares in Nvidia.

The post Prediction: Nvidia stock will hit $500 appeared first on The Twelfth Magpie.

But these latest events are making it look like a cheap value stock in my book. Let’s check what’s going on.

Another stunning quarter

On 20 May, Nvidia posted yet another set of record quarterly results. Here are some standouts from the first quarter of fiscal 2027…

• Revenue up 85% year on year to $81.6bn
• Adjusted earnings per share up 140% to $1.87
• Free cash flow up 86% to $48.6bn

What happened to the stock price? As of the time of writing on 1 June, Nvidia is down 5.5% since results day. And it’s fallen 10.7% from the all-time high it set in early May.

Still, that often happens to an overpriced stock even on the back of good results, right? Hmm, overpriced you say? I’ll come back to that, but there’s other important news.

The next PC revolution?

There’s a thing going on in Taipei called the Computex trade show. And Nvidia CEO Jensen Huang took the stage Monday (1 June) to announced the company’s new RTX Spark superchip. Nvidia is always announcing new chips, but this one is a bit different.

It incorporates a new N1X processor based on Arm Holdings technology — and development is in conjunction with Microsoft. But it’s not for AI data centres. No, it’s for powering PCs — desktop and laptop personal computers.

Huang talks about a petaflop of processing power, enough to run some seriously beefy LLMs. And it should drive blockbuster 1440p games at over 100 frames per second. HP, Dell, and others should be releasing PCs using the chip — and running Windows for Arm — in the autumn.

What does it really mean?

Jensen Huang isn’t known for holding back from expressing enthusiasm, so maybe we need some caution when we listen to him.

This reinvention of the computer is as big of a deal as the reinvention of the phone into what we now know as the smartphone.

–Jensen Huang, Computex 2026

But when he says that, I’m not going to dismiss it as hyperbole.

In response, Arm shares jumped over 10% in pre-market trading on the US market. And what about Nvidia, the lynchpin in the whole thing? A piffling 2% rise.

Yes, that stock valuation really must be high to keep investors from filling their boots.

So what’s it worth?

Except… it isn’t. Nvidia stock has a forward price-to-earnings (P/E) ratio of only 22.5. That’s well below UK growth champion Rolls-Royce Holdings and its P/E of 35.5 — which comes after a similar five-year price performance.

Some investors fear hyperscaler AI spending plans are, well, overhyped. Should the enormous sums they’re talking about fail to materialise, that could hit the earnings part of Nvidia’s P/E. And I see it as a realistic danger.

But I think growth investors should be considering Nvidia stock at today’s valuation — especially if there really is a new PC revolution in the offing.

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post Up 1,200% in 5 years, here’s why Nvidia could still be a brilliant value stock appeared first on The Twelfth Magpie.

But that does not mean that Buffett’s hard-earned investing wisdom is not still relevant.

In fact, the way 2026 has been shaping up in the stock market, I reckon some of Warren Buffett’s thinking may be more relevant than ever!

This looks like a greedy market at least in some areas

Specifically what I have in mind is the Sage of Omaha’s injunction to “be fearful when others are greedy, and greedy when others are fearful”.

Is there a lot of greed in the market right now?

I think so. Now, that may not be evenly spread. In fact, some pockets of the UK stock market continue to look cheap to me, with unloved shares selling for what I see as bargain prices.

But other bits of the market are seeing the sort of greed I associate with the dotcom era. AI is an obvious example. However, this is not just about AI.

I think tech in general continues to offer many greedy-looking valuations and other sectors are starting to show a similar trend – defence being one.

During the first quarter with a new chief executive, Berkshire continued to be a net seller of shares, as it had been under Warren Buffett for the preceding several years.

Its cash pile is now $380bn – but apparently it does not see attractive enough opportunities to deploy cash faster than it is coming in.

So, perhaps now is the moment when investors taking a leaf from Buffett’s book ought to be “fearful”?

Turning theory into actionable practice

What does that mean?

One potential reaction can be to review a portfolio to see what valuations look unjustifiably high from a long-term perspective, then to consider whether to keep those shares or take profit by selling them.

Another is to do what I think smart investors do in any market – think carefully including from a financial perspective before buying more shares.

Take Nvidia (NASDAQ: NVDA) as an example.

I have long liked the chip giant. While it has certainly benefitted from surging demand on the back of AI, this is not some one-hit wonder. It has been innovating in the chip space for decades.

Before AI exploded it had already built a large customer base by offering specialist chips for a variety of purposes such as gaming.

AI has been a force multiplier for Nvidia, though. Its revenues and earnings have soared.

At 33 times earnings, the valuation does not seem ridiculous.

A voice in my head points to the recent earnings growth and potential for that to continue, as sales surge. First-quarter revenue was up 85% year on year while net income more than tripled.

But wait – am I being greedy?

After all, maybe the initial AI buildout is a costly one-off for many companies. There is a risk revenue and earnings could fall back sharply.

Or am I being fearful?

Some fearfulness can be helpful in greedy markets. At the current price, I will not be buying Nvidia stock.

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Christopher Ruane does not hold any positions in the companies mentioned.

The post Warren Buffett’s warning about stock markets feels more relevant than ever in 2026! appeared first on The Twelfth Magpie.

What is going on?

It’s all about perspective

Do you remember as a child being challenged to fold a piece of paper, then fold it again, and again – more than seven times?

Easy sounding for the uninitiated, but impossible in practice.

What about a 2,400% dividend increase?

Do that for seven years on the trot and the cumulative increase would be… well, never mind. Do the calculation yourself to see what I see on my pocket calculator – and trust me, it is a very big number.

Clearly, this sort of dividend growth is exceptional, even for an exceptional share like Nvidia. I see it as a one-off, not setting a new norm.

Nvidia’s share price growth (the stock is up 1,358% in five years) had left the dividend yield at a paltry 0.02%.

So the massive increase announced last week will simply push the yield up to 0.5%. That is far more attractive than what it was before, but still unremarkable.

Where does Nvidia go from here?

The reason Nvidia can afford to reward its stockholders so handsomely is simple: it is currently producing a gusher of cash.

In its most recent quarter, the company’s net cash flow from operating activities was $50bn. Dividends cost it $0.2bn.

So even the 25-fold increase in dividend the firm announced would still leave close to 90% of operating cash flows untouched by dividend costs.

Even a new $80bn share buyback authorisation may not be enough to suck up the majority of the company’s operating cash flows for the year.

Why is Nvidia suddenly growing its dividend so dramatically?

Does it not have other useful ways to spend its free cash flow, to try and build the business?

A cause for celebration – or alarm?

Maybe not.

The AI chip market is huge and continues to grow at pace. Nvidia is the giant within it.

Even if it was to spend those tens of billions of dollars earmarked for shareholder payouts and share buybacks on growth instead, would it make much difference in the short term? Customers are eating out of its hands and there is a long waiting list for its most popular chips.

The business is in a sweet spot – it is pumping out money and it can probably keep doing so (even more so in fact) without having to spend proportionately more.

That reflects economies of scale and means its already attractive gross profit margin (75%) grows even higher.

Revenues and earnings could keep growing. Earnings growth means Nvidia stock now sells for 33 times earnings – higher than I would like to pay but not outrageously expensive in my view.

Still, I am not yet ready to buy at that price given the risks to the company’s valuation if AI spending slows down, which I feel could well happen in a weakening economy. But I will keep a close eye on this remarkable stock.

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Christopher Ruane has no position in any of the shares mentioned.

The post Does a 2,400% dividend increase signal Nvidia stock’s growth prospects are slowing? appeared first on The Twelfth Magpie.

But how much do you need to invest in one of these accounts to live off the dividends? Let’s crunch some numbers.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Multiple variables to consider

Answering this question isn’t easy. Because everyone has different spending requirements.

Some people might be able to get by on £30,000 of dividends per year. Others may need £100,000 or more.

Then, we need to think about dividend yields. Here, risk and reward are linked closely.

While there are plenty of super-high-yielding stocks in the market today, these are risky (meaning there’s a chance of capital losses). So, an investor needs to give some thought as to the risk level they want to take on.

Crunching the numbers

I think the best way to answer the question is to pick a certain income level. Then, you can calculate how much capital would be required at several different yields where 4% is lower risk, 6% is medium risk, and 8% is high risk.

So, for example, if we were to select £40,000 as the income level desired, the amount of capital required would be:

• £1,000,000 at a 4% yield (the calculation here is £40,000 divided by 0.04)
• £666,667 at a 6% yield
• £500,000 at an 8% yield

These calculations show that a fair bit of money is required to live off dividends. But it’s not an unachievable goal – with regular contributions to an ISA and a sound investment strategy it’s definitely possible to build up a portfolio worth £500,000+.

Getting to your target

One thing that’s worth pointing out here is that in the building of the portfolio stage, one doesn’t necessarily have to invest in high-yield dividend stocks. By allocating some money to growth stocks, an investor may be able to get to their target portfolio size faster.

As an example, take a look at Nvidia (NASDAQ: NVDA). Over the last five years, it has turned a £5,000 investment into around £80,000.

By contrast, Legal & General – one the UK’s most popular income stocks – has only turned £5,000 into around £6,500 despite its high dividend yield.

Is it too late to get in?

Is Nvidia worth a look today? I think so, assuming an investor has a long-term horizon.

The company’s most recent results were incredibly strong. For the quarter ended 26 April, revenue was up 85% year on year.

Meanwhile, with hyperscalers forecast to spend a trillion dollars on AI infrastructure next year, the growth should continue in the medium term.

Another thing to like here is the valuation. Right now, the stock actually looks pretty cheap (the price-to-earnings (P/E) ratio is only around 20).

One other bullish factor is analyst sentiment. Right now, many analysts are increasing their price targets (to $280+).

I’ll point out that this stock is volatile. If there are concerns that AI spending is going to slow, it could fall.

I believe it’s worth considering as part of a diversified portfolio though.

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Edward Sheldon has positions in Nvidia

The post How much do you need to invest in a Stocks and Shares ISA to live off dividends? appeared first on The Twelfth Magpie.

The company reported some very impressive earnings on Wednesday (20 May) but the stock didn’t really move. So is that a sign it’s time to sell?

Results

The results for what Nvidia calls Q1 2027 (the three months ending 26 April 2026) were very strong. Revenues jumped 85% from the previous year to $81.6bn.

That’s obviously strong. But more importantly, sales growth has been accelerating over the last few quarters – including this one.

Source: Fiscal.ai

Earnings per share were $1.87 – up 140%. It’s also worth remembering that this figure now includes stock-based compensation expenses.

Data centres – the bit associated with AI — grew 92%. And that’s divided roughly evenly between public cloud providers and AI specialists.

Looking ahead, Nvidia is expecting Q2 revenues to be 94% higher than last year. And new products like Vera Rubin are on track for Q3.

That all sounds very good. So why isn’t the stock moving?

Why hasn’t the stock moved?

Nvidia posted strong results and impressive guidance, but the stock didn’t move. Where have we seen that recently in the stock market?

The answer is software. Businesses are reporting impressive earnings, but the market – literally – isn’t buying it.

It’s not that investors don’t think results are very good. There’s been no real decline in sales or profits for a lot of software companies.

The trouble is, investors are unsure what to make of the threat of AI. And that’s making them wary about buying these stocks.

That’s fair enough – the risks are hard to assess. But there seems to be nothing software firms can say or do to convince investors.

I wonder whether Nvidia might be in a similar situation. There have been some concerns recently and these are hard to shake off.

What are the issues?

Nvidia’s challenges come in two forms. One is that – results notwithstanding – there are doubts about exactly how much money it’s making.

Several analysts have noted that the firm has been making big investments in its customers. And that seems to have coincided with higher sales.

That raises a question mark over some of the company’s headline figures. So investors need to at least look closely at these.

Another potential issue is competition. The likes of Alphabet and Amazon have been working to reduce their dependence on Nvidia’s GPUs.

Replacing these won’t be straightforward. But it represents a risk that’s hard to assess accurately and investors can’t afford to ignore.

Neither of these is a reason to think Nvidia is about to come unstuck in a big way. But both are reasons for investors to be cautious.

Time to sell?

A combination of strong growth and a static share price is usually a reason to buy, not sell. But Nvidia is in an odd position.

The company is facing some complicated challenges. And the stock market doesn’t seem to be convinced by its strong earnings reports.

The stock is up 1,390% in the last five years. But I think shareholders might want to consider realising some of those profits here.

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Stephen Wright has positions in Amazon.

The post After a 1,390% gain in 5 years, is it time to move on from Nvidia stock? appeared first on The Twelfth Magpie.

Michael Burry – the hedge fund manager immortalised in The Big Short for calling the 2008 housing collapse – has just issued one of his starkest warnings yet. Should investors listen?

What exactly is Burry warning?

On 8 May, Burry posted a characteristically blunt message on Substack. In his words, 2026 is “Feeling like last months of the 1999-2000 bubble.” 

The comparison’s deliberate. He sees the current AI-driven frenzy as the final, euphoric stage of a bubble rather than the beginning of a sustainable rally. And specifically, his focus is on semiconductor stocks.

The Philadelphia Semiconductor Index has surged around 65% in 2026 alone. And Burry’s reportedly purchased put options on the iShares Semiconductor ETF expiring in January 2027, betting on an expected decline of roughly 30% between now and then.

That’s not just talk. It’s a financial commitment. And it isn’t entirely without merit.

Looking at the Shiller CAPE ratio (a measure of overall stock market valuations), the S&P 500 currently stands at 41.7. That’s the highest it’s been since the dotcom bubble, where it reached as high as 44.2 before the market collapsed.

Should investors actually be worried?

Here’s the thing. Burry’s track record beyond 2008 is patchier than his reputation suggests. And repeated crash calls throughout the last decade have caused investors who listened to miss out on some extraordinary gains.

But that doesn’t mean the warning should be dismissed entirely. The AI narrative’s dominant, valuations are stretched, and consumer sentiment recently hit a record low on the same day the S&P 500 hit a fresh high. That disconnect’s worth noting.

The smarter approach isn’t to panic. Instead, investors should use the warning as a prompt to assess whether the stocks driving the rally are genuinely worth owning at today’s prices.

Let’s look at an example

Burry previously shorted Nvidia (NASDAQ:NVDA) directly in 2025. He has now done so again indirectly through his semiconductor ETF, of which Nvidia’s a constituent.

Yet the chipmaker continues to deliver staggering earnings growth, with data centre revenues rising over 400% year-on-year. Demand from hyperscalers such as Microsoft, Amazon, and Google shows no sign of abating, and Nvidia’s next-generation Blackwell architecture is already selling out quarters in advance.

However, with a forward price-to-earnings ratio of 26.5, investors are pricing Nvidia as if it will continue to dominate. The only trouble is that isn’t guaranteed. Hyperscalers are actively searching for cheaper alternatives from rivals including AMD or making their own in-house versions to bring down the cost of building AI infrastructure.

In other words, the gravy train could indeed eventually come to an end. And that shouldn’t be a major surprise given the cyclicality of the semiconductor sector.

However, when this slowdown might happen is the ultimate question. And right now, even investors as smart as Burry don’t know the answer for certain.

Personally, I think a gradual correction is more likely than a sudden crash. But there are nonetheless still plenty of other interesting opportunities for investors to explore.

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post ‘The Big Short’ says a stock market crash is near appeared first on The Twelfth Magpie.

Yet given the strong headline numbers, is the stock worth buying on this dip?

Running through the details

Nvidia reported fiscal Q1 revenue of $81.6bn, up 85% year on year. Given its market cap of over $5trn, that’s pretty impressive. Adjusted earnings per share also came in well ahead of analyst expectations. Looking ahead, the company guided for next-quarter revenue of approximately $91bn. Again, this was ahead of analyst estimates.

Therefore, the fall isn’t a result of poor performance. However, it does speak to the fact that investors have become accustomed to exceptional quarters, in which management not only smashes forecasts but obliterates them. This time, while the results were excellent, they perhaps weren’t spectacular enough to satisfy a market priced for perfection.

Another factor that caused some concern is profit margins. While Nvidia maintained gross margins around the 75% range, some investors are nervous about the cost of ramping production of its next-generation Blackwell AI chips. Blackwell demand is clearly enormous, but newer chips are more complex and expensive to manufacture. That creates concerns that margins may gradually tighten over time.

There’s also the China problem. CEO Jenen Huang said the company has “largely conceded” the Chinese market to Huawei. The report also confirmed that it assumes virtually no China data centre revenue in the current quarter due to US export restrictions. Given that China is such a huge market, this wasn’t the news people were hoping for.

The long-term horizon

Even though the immediate market reaction is disappointing, it’s not the end of the world. The share price is up 69% over the past year, showing that even though it underperforms immediately after earnings, the dip gets bought. Past performance does not guarantee future returns, but it does show this isn’t something to get that worried about.

The key point for me is that the AI infrastructure buildout still appears to be in the early innings. Hyperscalers, including the likes of Microsoft through to Alphabet, continue to spend aggressively on AI data centres, and Nvidia remains the clear market leader in accelerated computing.

What’s more, the valuation arguably isn’t as stretched as many assume. In fact, with a price-to-earnings ratio of 33.87, it’s below the Nasdaq 100 average ratio of 37.61!

Of course, risks remain. Competition in the AI space is among the most intense in the market. But for investors with a long-term investment horizon, I still believe Nvidia could be one of the winners of this decade. Therefore, I think it should be considered.

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Jon Smith has no positions in the shares mentioned.

The post Is the Nvidia share price worth considering after falling, post-earnings? appeared first on The Twelfth Magpie.

That said, a 62% share price jump over the past year isn’t anything to grumble about. Nvidia isn’t far below an all-time high of $236. 

However, one UK fund manager reckons the stock will head much higher. According to his analysis, Nvidia will top $500 in three years’ time. 

If so, that would mean a more than doubling from today’s price. Why’s he so bullish? 

All-in on AI

The person I’m talking about is Mark Sheppard, who manages Manchester & London Investment Trust (LSE:MNL). This £402m trust is somewhat under-the-radar because it’s not in the FTSE 100 or FTSE 250 (at least not yet). 

Manchester & London’s philosophy is to “invest in elite growth companies aligned with the next decade of progress”. But rather than taking a broad-based view of technological progress like Scottish Mortgage does, it has built an incredibly concentrated portfolio around the global AI revolution. 

It has done this for a number of reasons: 

• Paradigm shift: while the Industrial Revolution was about the “mechanisation of muscle”, AI is about the “mechanisation of the mind”.
• With approximately $55trn spent annually on human capital today, there’s a huge addressable market for agentic AI to become “a direct substitute for human labour”.
• AI is eating software. 
• AI models are getting smarter.
• Token use is accelerating while the cost of training and inference continues to drop.  
• Robotics and automation are advancing rapidly. 

AI capex to top $1trn

In particular, the trust has gone all-in on the infrastructure layer that supports the data centre buildout. Below, we can see that Nvidia made up a whopping 42% of assets in Q1. 

However, the trust pared back this position recently because it fears Nvidia’s Vera Rubin chips could be delayed due to an “over-specification” of the platform’s architecture. 

In plain English, there’s a risk that Nvidia tried to make its next-generation products a bit too complex, potentially handing a temporary advantage to some chip rivals. 

Despite this risk, Manchester & London remains bullish on the AI chipmaker, which still has a meaty 24% portfolio weighting.

And as mentioned, the manager sees the stock hitting $500 in three years as AI spending by hyperscalers Microsoft, Google, Meta and Amazon rips higher. 

Supporting this thesis is Morgan Stanley, which now forecasts hyperscaler spending of $1.1trn in 2027. Goldman Sachs also sees investments in AI agents and related infrastructure topping $1trn in the coming years.

Dividend-paying fund

Of course, longer term, we have no idea about AI hardware demand. There will surely be intense pressure for hyperscalers to cut capital expenditure in future (the spending cannot continue at this pace forever).

Still, Nvidia’s trading at 20 times next year’s forecast earnings, which isn’t exactly expensive. As things stand, the stock looks good value to me. 

What about Manchester & London? Is this growth trust worth considering? Well, its high-conviction approach certainly carries concentration risk (though there’s some portfolio hedging through options). 

But the trust also offers a 3.9% dividend yield and is trading at a 21% discount to underlying net assets. So it could be worth looking at if you’re wanting discounted exposure to AI and Nvidia in particular. 

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Ben McPoland has positions in Axon Enterprise, Intuitive Surgical, Nvidia, Scottish Mortgage Investment Trust, and TSMC.

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