From the Desk of Irwin Michael – April 1, 2016

Nvidia is a technology company favourite owned by the ABC Funds. The company designs, develops, produces and markets visual computing products, earning most of its revenues from selling GeForce processors for PC gaming. We believe Nvidia operates a high quality growth business, with the company experiencing strong demand for its products while facing little competition. In the latest quarter, the company produced excellent results beating both revenue and earnings expectations. The company is realizing strong sales growth in processors for gaming, professional visualization, and datacenters as well as automotive, with an increasing number of auto companies using Nvidia processors in their cars.

We see a very bright outlook for Nvidia through continued strength in its core PC gaming business. However, the company also has strong growth levers through the datacenter, cloud computing and automotive sectors. Nvidia pays a 1.25% dividend and continues to repurchase its common shares under an aggressive buyback program.

Irwin A. Michael Signature

Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.

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