Nvidia’s (NVDA) Strong Results Reinforce Long Term Outlook

Sustainable Growth Advisers (SGA), an investment management company, released its second-quarter 2026 investor letter for its "U.S. Large Cap Growth Strategy." The letter can be downloaded here . SGA focuses on building high-conviction portfolios of quality growth businesses expected to achieve mid-teens earnings growth with less variability. Their investment strategy aims to protect and compound client capital. In Q2, the SGA U.S. LCG Portfolio returned 6.8% (Gross) and 6.6% (Net), underperforming the Russell 1000 Growth Index's 16.7% return and the S&P 500 Index's 15.2% return. The underperformance was driven by momentum market dynamics and the disparity between AI CapEx beneficiaries and other market segments. The firm remains confident in the portfolio's fundamental resilience and downside protection during market dips and is poised for a shift in market leadership dynamics, with projected revenue growth of 14% and earnings growth of 19% over the next three years. The portfolio valuations are at favorable levels, suggesting strong potential for future performance. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, SGA U.S. Large Cap Growth Strategy highlighted NVIDIA Corporation (NASDAQ: NVDA ) as a top contributor. NVIDIA Corporation (NASDAQ:NVDA) is a leading data center-scale AI infrastructure company operating through Compute & Networking and Graphics segments. On September 04, 2026, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $230.36 per share. The one-month return of NVIDIA Corporation (NASDAQ:NVDA) was 5.89%, and its shares gained 36.87% over the past 52 weeks. NVIDIA Corporation (NASDAQ:NVDA) has a market capitalization of $5.56 trillion.

SGA U.S. Large Cap Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2026 investor letter:

"NVIDIA Corporation (NASDAQ:NVDA) was a top contributor to performance during the quarter. The company reported strong results and introduced a new sales breakdown that highlights demand from the largest cloud companies, with the underlying numbers lining up well with its long-term outlook. Management commentary and investor focus also reflected confidence that demand remains strong despite ongoing debate around AI investment sustainability. Additionally, management reiterated sustained expectations for multi‑trillion‑dollar AI spending over the long term, growing contributions from both hyperscaler and non‑hyperscaler customers and increasing visibility into the company's networking and emerging CPU opportunities. Networking sales now run at about $60 billion annualized, and the new Vera processor is expected to add $20 billion. Capital returns also stepped up, with a commitment to return at least half of cash to shareholders and about $25 billion of buybacks planned each quarter. While competition and AI spending debates may contribute to periodic volatility, we believe the scale of the opportunity and Nvidia's technological advantages position the company favorably over the long term. We raised the target and added to the position during the quarter, maintaining an above-average weight."