Allan Small, senior investment advisor of IA Private Wealth, joins BNN Bloomberg to share insights on how to approach investing in Nvidia, and Eli Lilly.
“If you’re owning Nvidia, the big buyers out there need to keep buying and every quarter they need to buy more,” said Mike Bailey, director of research at Fulton Breakefield Broenniman. “You can check that box.” Wall Street analysts are overwhelmingly positive on Nvidia, with 67 of the 75 analysts tracked by Bloomberg rating the stock a buy. They’ve also continued to boost estimates, with profit forecasts for next year up about 10% over the past three months, according to data compiled by Bloomberg. That’s helped temper Nvidia’s valuation, which is now around 39 times forward earnings, down from last year’s peak of more than 60 times.
“Microsoft, Alphabet, Amazon, and Meta account for almost half of all AI spending, and their strong balance sheets and willingness to invest will likely continue to support strong growth in AI spending,” said Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management.