Steve Eisman of Neuberger Berman Group is not worried about the recent $430 billion selloff in Nvidia stock, a company he sees as a long-term growth opportunity. Despite a recent decline in share price, Eisman remains optimistic about Nvidia’s future in the AI computing market.
Nvidia has experienced a significant surge this year, with its stock rising by 139% through Monday’s close. While some investors are concerned about the rapid growth of the company, Eisman believes that the stock’s valuation is not a cause for concern. He emphasizes that investors are buying into the story of Nvidia’s success in the AI space, rather than solely focusing on the stock’s price.
Saira Malik, Chief Investment Officer at Nuveen Asset Management, shares Eisman’s confidence in Nvidia’s ability to benefit from the increasing demand for AI products. Malik sees Nvidia as a key player in the AI market, with a strong growth trajectory that justifies its current valuation.
Nvidia’s success is reflected in its performance within the $125 billion College Retirement Stock Fund (Stock Account) overseen by Malik, which has outperformed 86% of its peers in the past year. Malik stresses that despite Nvidia’s impressive stock performance, it is not an overvalued stock compared to its peers in the market.
Malik points out that while Nvidia may trade at a premium compared to the Nasdaq 100 Index, its price-to-earnings ratio has decreased from its high earlier this year and now aligns more closely with other companies in the industry, such as Advanced Micro Devices Inc.
Both Eisman and Malik are confident that Nvidia, along with other tech giants like Microsoft, Apple, and Amazon, will continue to drive growth in the AI sector. They believe that these companies are in a strong position due to their long-standing investments in AI technology, distinguishing them from the speculative bubble of the dot-com era.
Overall, Eisman and Malik remain optimistic about Nvidia’s prospects, emphasizing the company’s dominant position in the AI market and its strong growth potential in the coming years. Despite recent market fluctuations, they see Nvidia as a solid long-term investment opportunity for those interested in the AI computing space.
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https://finance.yahoo.com/news/steve-eisman-says-nvidia-story-151026763.html