Not Nvidia, Portfolio Manager Says He’d Pick This ‘Magnificent 7’ Stock Near Term, But Expects Jensen Huang-Led Company to Surprise to the Upside Next Week – NVIDIA (NASDAQ:NVDA)

Technology Investor and Portfolio Manager Eric Jackson On Thursday, he gave his thoughts on the Magnificent Seven’s actions in an interview with CNBC.

Best Bets Mag 7: Apple, Inc. AAPL, Meta Platforms, Inc. META And Nvidia Corp. NVDA The company’s stock is a favorite of the Seven Wonders, said Jackson, founder of EMJ Capital. Explaining his rationale, the portfolio manager said Apple is a good buy for the iPhone upgrade cycle, Meta is the first example of someone making money off artificial intelligence, and Nvidia is the favorite in AI.

Jackson, who sold Amazon, Inc. AMZN In July, he said the e-commerce giant’s stock was “pretty darn” cheap because on a five-year forward price-to-earnings basis, it was trading at a historically low multiple. There was nothing wrong with the earnings the company reported a few weeks ago, he said, adding that the stock was definitely on his radar.

The portfolio manager said he plans to add Amazon in a few weeks, just before the next earnings season.

See also: Best AI Stocks

What to expect from Nvidia? Nvidia is the biggest stock right now, Jackson said, adding that “if they laid an egg, it would be a major problem for the entire market.” “I don’t think they will. I think they will surprise to the upside,” he said.

“If you look at what Wall Street is counting on, going forward, you see AI revenues are going to explode almost like they’ve seen in the last year and a half, and then it’s going to kind of dry up,” Jackson said. That may not be the case, he added.

Jackson referred to a recent speech by former Google CEO Eric Schmidt at Stanford and his conversation with OpenAI Sam Altman, in which the throwaway line was that the hyperscalers and OpenAIs of the world would likely spend $300 billion each on Nvidia AI over the next few years.

If Nvidia delivers these hyperscalers, its order book will be full for the next four years and that’s a huge amount of money waiting for the company, he said. He also hinted at Advanced Micro Devices, Inc. AMD And Broadcom, Inc. AVGO He also benefits from it, but he believes that the vast majority, 95%, of the revenue will go to Nvidia.

Nvidia ended Thursday’s session down 3.70% at $123.74, according to data from Benzinga Pro.

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