Doug Clinton, the CEO of Intelligent Alpha, told CNBC recently that Nvidia (NVDA) is his “top AI pick.” Intelligent Alpha uses AI to create its stock portfolio, Clinton noted.
Why Clinton Is Bullish on NVDA
“The bottom line is that Nvidia is changing hands for 21 times its forward earnings, and the earnings (estimates) are pretty solid,” Clinton stated.
That’s because China is “derisked” at this point for Nvidia, while the large cloud-infrastructure players are going to keep spending huge amounts on AI “no matter what happens with the economy,” Clinton explained. As a result, those firms will keep buying Nvidia’s chips, he predicted.
And in general, the “huge demand” for AI is poised to keep “increasing and accelerating,” enabling NVDA to continue selling more chips, the veteran investor contended. He added that these upcoming demand increases are not yet reflected in AI stocks.
More About NVDA
Analysts on average expect NVDA’s earnings per share to reach $4.42 this year and $5.67 in 2026, up from $2.99 in 2024.
In the last month, the stock has fallen 18%, while it has plunged 30% in the last three months.
While we acknowledge the potential of NVDA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
