Nvidia Exposure: Clockwise Capital CEO on Trimming Mega-Cap Tech

Strategic Portfolio Adjustments

• 🎯 Nvidia shares are under pressure, alongside other 'Mag 7' stocks, prompting a review of exposure.
• 💡 Clockwise Capital has been trimming its position in Nvidia and reducing overall exposure to mega-cap tech.
• ⚖️ This adjustment is part of a barbell approach, balancing long-term secular AI plays with more reliable, inflation-hedging assets like staples and utilities.

Market Risks and Allocation Shifts

• ⚠️ Three fundamental risks are considered: the sustainability of tech growth rates (e.g., Nvidia's 55% revenue growth), short-term economic cycles (tariffs, interest rates, recession), and the long-term US debt cycle.
• 📉 The firm is underweighting the top 10 NASDAQ holdings (comprising the Mag 7) and shifting allocation towards smaller-cap names.
• 📈 Positions in more economically sustainable names are being increased, particularly on the shorter end of the duration curve.

Nvidia Keynote Expectations

• 🎤 Nvidia CEO Jensen Huang's keynote is anticipated to set the agenda for the AI industry, potentially shifting focus towards artificial general intelligence (AGI).
• 🚀 Huang is expected to highlight the power of Nvidia's chips and the advancements in AI, including innovations enabled by DeepSeek.
• 🤖 A significant focus on humanoid robotics is also expected, aligning with Nvidia's investments in robotics and real-world AI understanding, potentially building on their 'Cosmos' model.