Blue Whale Growth Fund Follows Capital Expenditure Strategy, Holdings Include NVIDIA at 22x P/E

According to Stephen Yiu, manager of the $4.5 billion Blue Whale Growth Fund, the simplest approach to investing in AI is to "follow capital expenditure." Rather than predicting which companies will profit from AI, the fund tracks where capital flows and allocates investments to companies directly benefiting from AI infrastructure spending.

Blue Whale's top ten holdings focus on the semiconductor supply chain, including Applied Materials, SK Hynix, Lam Research, and NVIDIA. Since its inception in 2017, the fund has delivered an annualized return of approximately 19% net of fees, outperforming the MSCI World Index's 12.4% return over the same period. Yiu notes that NVIDIA, with a forward P/E of 22x and substantial net cash reserves, remains "increasingly cheap" compared to companies like Apple at over 30x, given GPU demand remains in early stages of growth.