NVIDIA
Global semiconductors
$791.7B · +25.6%
NVDA
Value Creation
Rev Growth
70.7%
EBITDA Growth
87.5%
Market Pricing
EV/EBITDA (NTM)
16.7x
P/E (NTM)
20.9x
The Pragmatic Portfolio is a concentrated stake in powerful businesses operating at the center of rapidly growing markets. Their growth becomes yours. Operating performance leads. Valuations follow.
The market knows these are better businesses — and prices them accordingly. The Pragmatic Portfolio carries a real premium to the index because it's earning it: growing four times faster on revenue and nearly five times faster on earnings than the average S&P 500 company. But even after that premium, on a growth-adjusted basis the Pragmatic Portfolio is meaningfully cheaper than owning the index. These businesses are winning in the real world. The stock prices will follow.
Lower is better. The market is pricing each unit of growth at $0.91 across the S&P 500. The Pragmatic Portfolio delivers that same unit of growth at $0.37 — nearly two and a half times cheaper. That's the price of focus.
Five businesses physically constructing the chips, foundries, racks, software, and cloud capacity the AI economy runs on top of. The activity is build. The megatrend is a multi-trillion-dollar buildout of compute infrastructure unfolding across this decade.
Six businesses weaving AI into how large organizations actually operate — analyzing their data, watching their software run, designing their products, building their applications. The activity is operationalize. The megatrend is the migration of AI from demo to deployment inside the institutions that run the economy.
Four businesses rebuilding the layer between people and the things they buy. The activity is rewire how billions of consumers find, evaluate, and transact — a layer being rewritten in real time as AI becomes the new intermediary between intent and inventory.
Three businesses replacing legacy ways of doing daily things — learning a language, ordering from a local merchant, running a restaurant — with modern, AI-enabled platforms. The activity is replace what came before. The megatrend is the long migration of ordinary life from analog and fragmented onto integrated software stacks.
Three businesses capturing generational consumer-behavior shifts in food and drink as category winners. The activity is take share where the category is being rebuilt. The megatrend is not AI — it is younger consumers fundamentally rewriting what they eat, drink, and trust, faster than incumbents can respond.