Not Nvidia, Portfolio Manager Says He'd Pick This 'Magnificent 7' Stock In The Near Term, But Expects Jensen Huang-Led Company To Surprise On The Upside Next Week

Tech investor and portfolio manager Eric Jackson on Thursday weighed in with his thoughts on the Magnificent seven stocks in an interview with CNBC.

Better Mag 7 Bets: Apple, Inc. AAPL, Meta Platforms, Inc. META and Nvidia Corp. NVDA are among the favorite Magnificent Seven stocks, said Jackson, the founder of EMJ Capital. Giving his rationale, the portfolio manager said Apple is a good buy going into the iPhone upgrade cycle, Meta is the first posterchild of somebody making money hand over fist from artificial intelligence and Nvidia is the frontrunner among AI.

Jackson, who sold Amazon, Inc. AMZN in July, said the shares of the e-commerce giant are “darn” cheap, as on a five-year forward price/earnings basis, it was trading at an all-time low multiple. There was nothing wrong with the earnings the company reported a couple of weeks ago, he said, adding the stock is definitely on his radar.

The portfolio manager said he planned to add Amazon in a few weeks just ahead of the next earnings season.

See Also: Best AI Stocks

What To Expect From Nvidia? Nvidia is the most important stock right now, Jackson said, adding that “if they laid an egg, it would be a major problem for the whole market.” “I don’t think they will. I think they are gonna surprise to the upside,” he said.

“If you look ahead at what Wall Street is counting on, on a go-forward basis, it’s almost an explosion of AI revenue that they have seen over a year and a half, it will sort of dry up,” Jackson said. That may not be the case, he added.

Jackson referred to a recent speech by ex-Google CEO Eric Schmidt to Stanford and his conversation with OpenAI’s Sam Altman, in which the throw-away line was the hyperscalers and the OpenAIs of the world would probably spend $300 billion each on Nvidia AI over the next few years.

If Nvidia supplies to those hyperscalers, its order book will be full for the next four years and that is a massive amount of money sitting in front of the company, he said. He also hinted at Advanced Micro Devices, Inc. AMD and Broadcom, Inc. AVGO benefiting as well but he thinks the vast majority or 95% of the revenue to go to Nvidia.

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

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