NVDA · Semiconductors · Accelerated Computing
NVIDIA Corporation
BuyThe business
NVIDIA designs the accelerated-computing platforms that power modern AI. Its advantage is not silicon alone but the CUDA software ecosystem layered on top — a developer standard, built over fifteen years, that makes its hardware the path of least resistance for the entire field of machine learning.
The flywheel
More developers build on CUDA; more software makes the hardware more valuable; more demand funds faster chips and deeper software investment, attracting still more developers. Hardware and software reinforce one another into a platform moat that is far stickier than any single product cycle — a genuine flywheel, not merely a fast-growing chip business.
Why we own it
- A platform moat — CUDA — that compounds with every developer added.
- Capital-light, fabless model with extraordinary free cash flow.
- The default infrastructure layer for a multi-year AI build-out.
- Hardware-plus-software integration that competitors struggle to match.
Key risks
- Cyclicality and the risk of an AI-spending digestion phase.
- Customer concentration and intensifying competition.
- Valuation embeds high expectations for sustained growth.
Our recommendation
A platform flywheel of rare quality riding a generational tailwind. We own it for the ecosystem moat while remaining mindful of cyclicality, and add on dislocations.
This note reflects the views of Flywyl as of May 2026 and is provided for informational purposes only. It is not investment advice, an offer, or a solicitation to buy or sell any security. Views and positioning may change without notice. Past performance does not guarantee future results, and all investments carry risk of loss. Figures and qualitative ratings are illustrative of our internal framework and should be independently verified.