The portfolio will own 325 shares of NVDA, increasing its weighting to about 1.91% from 1.62%. We're buying 50 shares of Nvidia at roughly $163.51 each. Guidance missed expectations due to a $500 million headwind from these crises.

We believe shares are attractive at current levels, especially for those investors looking to hold Nvidia for at least the next year to 18 months. Data center sales were strong, despite networking products remaining supply-constrained. And while gaming is seeing the bulk of that $500 million expected revenue headwind, we were encouraged by management's commentary surrounding the longer-term underlying dynamics of the industry.

We believe the weakness is temporary and the long-term opportunity remains as attractive as ever. Nvidia is expected to generate about $35 billion in sales this year. While we are hesitant to call a bottom in this market, we do believe the stock has become de-risked.

The China/Russia headwinds have now been quantified by management. Any relief on either of these fronts could provide upside to the forecast. Shares now trading at their lowest valuation (on a forward price-to-earnings basis) since March of 2020. With this buy, we are lowering our price target to $250 from $345 to reflect the multiple contraction.
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