Josh Wolfe Short Intel, Long nVidia: Invest For Kids Chicago 2016 ~ market folly

Thursday, October 27, 2016

Josh Wolfe Short Intel, Long nVidia: Invest For Kids Chicago 2016

We're posting up notes from the Invest For Kids 2016 investment conference.  Next up is Josh Wolfe of Lux Capital who pitched short Intel (INTC) and long nVidia (NVDA).

Josh Wolfe's Presentation at Invest For Kids Chicago 2016

•    Founder of Lux Capital, $750 million VC fund

•    Science background

•    Has Bill Gates on one of his companies’ boards (only board other than Microsoft and Berkshire)

•    Seeks truly radical change and disruptive technology

•    Lux is differentiated by longer horizon of 10 years

•    Best way to predict the future is to invent it

•    Gap between sci-fi and sci-fact is shrinking

•    Companies

o    Kymeta: meta-physics in satellites for transportation applications; Gates on board of directors

o    Planet Labs: tiny satellites

o    Orbital Insight: data analytics and artificial intelligence using big data, often sold to hedge funds

o    Zoox: CPU (multi-cores) going to GPU (hundreds of cores); “these guys are the second coming of Jobs and Woz)

o    Nervana Systems: just sold to Intel

•    Short Intel (INTC) – it is a shell of its former self; it is trying to buy success via M&A; nobody coming out of top schools wants to work there

•    Long nVidia (NVDA), on the other hand, which is ascendant -- $850 million of FCF this year going to $1 billion next year

o    NVDA is the “arms dealer” to all of the companies we’re backing

Be sure to check out the rest of the presentations from Invest For Kids 2016.

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