Ivan Feinseth, Chief Investment Officer at Tigress Financial, describes the recent pullback in tech stocks, especially AI stocks, as “a major multiyear buying opportunity.” He remains highly optimistic about the future of AI and is particularly bullish on Nvidia (NVDA), Microsoft (MSFT), Meta (META), and Oklo (OKLO).
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Feinseth Identifies “Key AI Plays”
“People have compared AI to the internet in the mid-’90s,” Feinseth told Schwab Network. He expressed strong confidence in the long-term prospects of NVDA, MSFT, and META, highlighting them as “key players in AI.” According to Feinseth, AI will expand into various sectors, including healthcare, robotics, and manufacturing, with AI systems needing to learn and evolve significantly.
Oklo Will Benefit From “Huge Demand,” Feinseth Says
According to the investor, Oklo, a manufacturer of small and medium nuclear reactors, stands to benefit significantly from the increasing demand for electricity. “As AI continues to expand, the power grid is upgraded, and charging infrastructure grows, there will be tremendous demand for electricity,” he explained.
Feinseth emphasized that nuclear power is both “renewable and environmentally friendly.”
While we recognize NVDA’s investment potential, we believe that certain AI stocks offer even greater potential for higher returns in a shorter period. For those seeking an AI stock with a similar promise to NVDA but trading at less than five times its earnings, we invite you to explore our report on the most affordable AI stock.
Nvidia benefits from massive AI-driven demand.
Artificial intelligence (AI) is far from a new idea. The concept of machines thinking for themselves has been discussed since the 1950s, when mathematician and computer scientist Alan Turing first explored the design of AI computers, and the Rand Corporation developed the first AI program.
Over the past 70 years, science fiction books and movies, such as Isaac Asimov’s iRobot and The Terminator, have delved into the risks and rewards of AI.
However, it is only in recent years that AI has begun to significantly impact everyday life and business. This shift has been driven by breakthroughs like ChatGPT and competing large language models, including Alphabet’s Gemini.
Now, AI is being leveraged across various industries. Banks like JPMorgan Chase use it to hedge risks, drug companies are exploring its potential in medicine development, retailers are investigating its role in reducing theft and optimizing supply chains, and military organizations are studying its use on the battlefield.
Each day, millions of Americans turn to AI chatbots for answers and concise explanations, while more businesses adopt agentic AI programs to supplement or replace human workers.
In response to this growing demand, major tech companies are allocating enormous sums to their IT budgets. For instance, Microsoft, Google, and Amazon spent $192 billion last year, up from $117 billion in 2023.
A significant portion of these investments has been directed toward Nvidia as tech giants seek access to its cutting-edge software and graphics processing units (GPUs). Sales of Nvidia’s H100, H200, and the latest Blackwell AI chips have driven the company’s revenue to over $130 billion, a 114% year-over-year increase from $27 billion in 2023. Meanwhile, Nvidia’s net income surged to nearly $73 billion, up from less than $5 billion the previous year.
Frequently Asked Question
Why is the veteran investor bullish on NVDA?
The veteran investor is bullish on Nvidia (NVDA) due to its strong position in AI technology and its cutting-edge GPUs, which are vital for powering AI systems and machine learning models.
What makes Microsoft (MSFT) a key AI play in the investor’s view?
Microsoft (MSFT) is seen as a key AI player because of its significant investments in AI development, including partnerships with leading AI firms and the integration of AI into its software products and cloud services.
Why does the investor consider Meta (META) essential for AI growth?
Meta (META) is viewed as crucial in AI growth due to its focus on developing the Metaverse, AI-driven virtual environments, and its continuous advancements in machine learning technologies that are shaping the future of digital interaction.
What long-term potential does the investor see in these tech companies?
The investor believes that these companies have long-term potential due to their leading roles in the AI space, where the technology is expected to continue growing and expanding into new industries like healthcare, robotics, and manufacturing.
How will AI technology impact businesses and industries in the future?
AI technology is expected to revolutionize industries by improving efficiency, reducing costs, and enabling more personalized services. It will expand across sectors like healthcare, manufacturing, finance, and more.
What is the significance of Nvidia’s GPUs in the AI landscape?
Nvidia’s GPUs are considered the backbone of AI computing due to their power and efficiency in handling complex AI workloads. This makes Nvidia an essential player in the continued development and scalability of AI technologies.
What makes the current market environment a “huge multiyear buying opportunity”?
The veteran investor sees the recent pullback in tech stocks, particularly AI-related stocks, as a buying opportunity. With AI’s growth just beginning, there is significant upside potential in companies like NVDA, MSFT, and META.
Conclusion
The veteran investor’s bullish outlook on Nvidia (NVDA), Microsoft (MSFT), and Meta Platforms (META) highlights a strong belief in the transformative power of artificial intelligence. As AI technology rapidly evolves and expands into critical sectors like healthcare, manufacturing, and finance, companies leading the innovation curve are poised to deliver substantial long-term growth. With their deep investments in AI infrastructure, cutting-edge products, and scalable business models, NVDA, MSFT, and META stand out as strategic opportunities in a market increasingly driven by technological advancement. For investors looking to capitalize on the future of AI, these industry leaders offer compelling potential for outsized returns over the coming years.