In 1993, NVIDIA had roughly 90 days of cash left after its first chip flopped. Jensen Huang and co-founders Chris Malachowsky and Curtis Priem scrapped the original architecture and pivoted towards building a graphics chip designed specifically for PC gaming. That near-death decision eventually turned the struggling company into one of the greatest wealth creators in public market history.

Equity markets experienced a sharp drawdown, with software stocks at the epicentre. Results from ServiceNow, SAP and Microsoft were fundamentally solid, but growth rates came in marginally below expectations (around 1%). More importantly, however, they showed no near-term acceleration. In the current market environment, this lack of acceleration proved sufficient to trigger a software-wide sell-off, with large-cap names falling more than 10% and correlations across the sector spiking sharply.

Innovation drives earnings, and earnings drive stock prices. It is a simple yet powerful conviction has underpinned our DPAM Equities NEWGEMS Sustainable strategy since its inception. We break down why we believe this multi-thematic approach is ready and able to capitalise on the next phase of global growth.