WATCH: Stock picks — Naspers and Nvidia
Nesan Nair from Sasfin chose Nvidia Corporation as his stock pick of the day and Bright Khumalo from Vestact chose Naspers.
Nvidia is a semiconductor manufacturer that make video cards that go into computers.
Nair said he did a lot of shopping over Black Friday and Cyber Monday and became aware of the pricing power of companies that actually make the specialised components inside laptops.
“If you go from a 10GB CPU to a 12BB CPU, you’re not paying 20% more, you’re paying three times the price. It is a very different pricing model to what we are used to in the normal unit pricing model that most companies work on and this is a world leader. There’s no competition from the East and is very technologically based.”
Khumalo said Naspers is a cheap entry to Tencent.
“Believing that the worst is over with Tencent, even though they still have those games halted. The company recently reached over 200-million players at any given time, which is just mind boggling. Everyone was saying this is just another fad but every game gets 240-million. It’s just amazing how that company has proved to us that they’re not only a games company but they have all of these other businesses like WeChat.”
Nesan Nair from Sasfin and Bright Khumalo from Vestact talk to Business Day TV