Nvidia stock still 'way undervalued' amid record rise: portfolio manager
Nvidia is on track to break the record for a single-session jump in market value, but a portfolio manager says the chipmaker is still underpriced and recommends the stock as one of his top picks in the tech sector.
Francisco Bido, senior portfolio manager at Integrated Alpha, told BNN Bloomberg that he believes Nvidia will continue to outperform expectations as it grows alongside the artificial intelligence (AI) industry.
“We expect the AI market to keep growing at about a 40 per cent year-over-year clip for the next five years, and (Nvidia) is the top gorilla in that market so they should get the bigger piece of the earnings pie,” he said in a Thursday interview.
“(Nvidia) is way undervalued… we think there’s plenty more to go.”
In addition to Nvidia (NVDA, Nasdaq), Bido recommended Advanced Micro Devices (AMD, Nasdaq) and Netflix (NFLX, Nasdaq) as his top picks in the tech sector.
Neither Bido nor his family own shares of the stocks listed above, but clients at his firm do. None of the companies mentioned are investment banking clients at Integrated Alpha.
For the full interview, click on the video at the top of this article.