Venture investor who backed Nvidia and memory-chip maker reveals third conviction call
Venture capitalist Josh Wolfe, known for early bets on Nvidia and a memory-chip maker, says he has identified a third high-conviction opportunity that could lift hardware stocks.
Venture capitalist Josh Wolfe, who made early investments in Nvidia in 2016 and a memory-chip maker in 2024, says he has found a third conviction call that he believes will boost hardware stocks.
Wolfe, a partner at Lux Capital, uses insights from his portfolio companies to inform his stock market bets. His previous picks have included Nvidia, which surged after the AI boom, and a memory-chip manufacturer that benefited from rising demand for data storage. Now, he points to a new area within hardware that he expects to outperform. The third call is likely tied to emerging technologies such as advanced semiconductors, edge computing, or specialized hardware for artificial intelligence. For equity traders, Wolfe's track record adds weight to his views, and his endorsement could spark renewed interest in the hardware sector. Investors can check NowPrice's stocks page for real-time pricing on related names.
Wolfe’s approach mirrors the Fed Model, which compares earnings yield (E/P) to the 10-year Treasury yield. When earnings yield exceeds bond yields, stocks become attractive. Currently, the S&P 500 forward P/E sits near 20x, above its 10-year average of 18x, but hardware names with strong earnings growth may offer better value. Wolfe’s focus on hardware aligns with sector rotation trends, as investors shift from high-flying tech to tangible assets benefiting from AI infrastructure spending. Additionally, buyback yields in the semiconductor industry remain elevated, providing a floor for stock prices. Options-implied volatility for hardware ETFs suggests moderate uncertainty, but Wolfe’s historical picks often precede significant moves, making this a development worth monitoring.
Looking ahead, the key will be whether the identified subsector gains traction with broader market participants. Earnings reports from major hardware companies and product announcements later this year could provide confirmation. Wolfe's history suggests his picks often precede significant moves, making this a development worth monitoring. Breadth indicators, such as the percentage of stocks above their 200-day moving average, will signal if the rally broadens beyond a few names. If Wolfe’s third call involves a niche like edge computing or specialized AI chips, it could attract momentum traders and institutional flows. Investors should watch for volume spikes and analyst upgrades as catalysts.