Continued Momentum in AI and Accelerated Computing Boosted Nvidia (NVDA)
Sustainable Growth Advisers (SGA), an investment management company, released its third-quarter investor letter for its “U.S. Large Cap Growth Strategy.” A copy of the letter can be downloaded here. The portfolio returned -1.3% (Gross) and -1.4% (Net) in the third quarter, compared to a 10.5% return for the Russell 1000 Growth Index and an 8.1% return for the S&P 500 Index. SGA’s investment objective is to invest in high-quality growth businesses expected to achieve consistent mid-teens earnings growth, accompanied by stable revenue and cash flow. However, in Q3, the market leadership was adverse for SGA’s investment style as lower-quality stocks and cyclical industries outperformed. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, the SGA U.S. Large Cap Growth Strategy highlighted stocks such as NVIDIA Corporation (NASDAQ:NVDA). NVIDIA Corporation (NASDAQ:NVDA) offers graphics, compute, and networking solutions. The one-month return for NVIDIA Corporation (NASDAQ:NVDA) was 1.70%, and its shares gained 34.84% over the last 52 weeks. On December 31, 2025, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $186.50 per share, with a market capitalization of $4.53 trillion.
SGA U.S. Large Cap Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its third quarter 2025 investor letter:
"NVIDIA Corporation (NASDAQ:NVDA) was a contributor to the portfolio’s performance again in Q3, driven by continued surging demand for accelerated computing and AI infrastructure. With management projecting total infrastructure spend of $3-4 trillion in the future, the company’s long-term outlook remains compelling, and we continue to see double digit revenue and earnings growth in the years ahead. The company announced a $5 billion investment into Intel, with joint product development efforts that will strengthen Nvidia’s AI infrastructure platforms and blunt competitive threats from custom programs at cloud service providers and AMD. Toward the end of the quarter, the company also announced an unprecedented deal with OpenAI. Our numbers and expectations in the context of OpenAI are somewhat modest as there is a lot that needs to be proven here, starting from funding to business use cases and eventual revenue models. Despite that, we remain excited about the overall opportunity for Nvidia.
Content Original Link:
" target="_blank">
