Andrew Hill Investment Advisors has released its third-quarter 2026 investor letter, reviewing a market pulled in competing directions. Rising oil prices, higher interest rates, and persistent inflation weighed on stocks and bonds, while resilient corporate earnings and continued investment in artificial intelligence supported the broader equity market.
The letter does not report an aggregate third-quarter return for client portfolios. For context, the S&P 500 gained 3.54% through September 22, while the Bloomberg U.S. Aggregate Bond Index declined 2.8%. Oil prices climbed sharply, and the Federal Reserve raised its benchmark rate to 3.75%–4.00%, which the letter describes as its first increase in more than three years.
Exposure to software, AI hardware, and selected strategic investments supported client account performance, although losses elsewhere and rising bond yields offset some gains. The letter highlights a pronounced divide between investment themes: an equal-weight basket of AI stocks returned an average of 13.0% during the quarter, compared with an 8.3% decline for a basket of traditional-economy stocks.
Looking ahead, the firm expects the AI investment cycle to continue but remains cautious about the broader stock market. Its concerns include higher rates, inflation, geopolitical tensions, constrained consumer spending, election uncertainty, and a potential slowdown in AI capital spending as additional computing capacity becomes available. Against that backdrop, Andrew Hill favors companies with solid earnings, higher cash balances, and a gradual increase in fixed-income exposure, noting that high-grade corporate bonds offer yields above 6%.
NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor and computing technology company that designs graphics processing units, networking equipment, and software used in artificial intelligence, data centers, gaming, and autonomous systems. Its accelerated computing platforms help businesses train and operate AI models and process demanding workloads. On October 29, 2026, its shares closed at $213.66, a decrease of 0.80% from the previous session, giving the company a market capitalization of approximately $5.16 trillion.
Here’s what Andrew Hill Investment Advisors has to say about NVIDIA Corporation (NASDAQ:NVDA):
“Nvidia continues to be the leader in the global race to build artificial intelligence infrastructure, providing the advanced computing hardware that powers many of today’s most demanding AI applications. While the company’s fundamentals remain stellar and revenue is expected to grow more than 70% over the next year, the stock has not appreciated as much as some of its chipmaking peers over the past year. We continue to view Nvidia’s valuation as attractive, particularly when compared to some of its higher-flying rivals. In our view, Nvidia remains one of the most compelling ways to participate in the long-term growth of artificial intelligence.”
On October 27, 2026, NVIDIA Corporation (NASDAQ: NVDA) announced an expanded collaboration with Oracle to deploy Vera Rubin AI infrastructure at multi-gigawatt scale. The companies also announced the general availability of Vera Rubin NVL72 systems and Vera CPUs on Oracle Cloud Infrastructure. The expansion is designed to support AI model training, inference, and applications that use AI agents, while allowing customers to scale CPU and GPU resources independently to improve computing efficiency.
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Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
