GQG adds more Nvidia as chipmaker has a ‘new leg’, says CIO

By Carolina Mandl

NEW YORK (Reuters) -A big buyer of Nvidia (NASDAQ:) Corp’s shares in the first quarter, Australia-listed investment firm GQG Partners, said it has continued to increase its exposure to the company since then as the chipmaker is likely to benefit from a cycle of investment in artificial intelligence.

Fort Lauderdale, Florida-based GQG, which manages almost $100 billion in assets, added 8.2 million shares in Nvidia in the first quarter, worth $2.3 billion then, according to a regulatory filing.

Since then, GQG has “meaningfully increased” its position in Nvidia, Chief Investment Officer Rajiv Jain said in an interview. He declined to disclose the amount it has further invested.

The chipmaker is likely to give a boost to funds which have invested in it, as Nvidia’s shares have more than doubled year to date amid an artificial intelligence boom. The company briefly touched the $1 trillion market capitalization late in May.

Two years ago, concerned about the company’s high valuation, GQG had dumped all its Nvidia’s shares, just to invest again in the first quarter. “Now Nvidia has gotten a new leg because of the ChatGPT-lead, AI narrative, which is very strong,” said Jain, explaining his decision to reinvest.

Despite Nvidia’s recent jump in valuation, he still sees room for further upside in the share price as the company recently updated its revenue forecast. Some investors also believe the stock remains attractive.

Jain also said the asset manager is considering raising its exposure to India’s Adani by participating in capital increases the group is planning. Adani Enterprise and Adani Transmission unveiled plans to raise up to $2.5 billion from the stock market. Adani Green Energy also said it plans to tap investors.

“We would very likely participate depending on the pricing in future offerings,” said Jain. “There is a lot of opportunities that Adani has. There’s a big privatization happening in airports and in transmission and distribution assets. Who else has got to participate in a big way in India?”

Bloomberg reported earlier on GQG’s plans to buy additional shares in Adani group.

Jain said GQG has invested roughly $2.5 billion in five undisclosed Adani companies after a report from U.S.-based shortseller Hindenburg earlier this year raised governance concerns about the group, which has denied any wrongdoing.

Asked whether he had concerns about the Adani group’s governance, Jain said investors have different opinions about assets. “There’s somebody who has a negative view and somebody has a positive, that’s how trading happens. Somebody’s selling, somebody buying.”