Well-Known Investor Is Likely to Sell Nvidia (NVDA) Ahead of Its Earnings
Prominent investor Steve Weiss said on May 19 that he would probably sell all of his Nvidia Corporation (NASDAQ:NVDA) stock ahead of the company's first-quarter earnings report. The giant chip maker is slated to report its Q1 results on May 28. A frequent guest on CNBC, Weiss is the Chief Investment Officer and Managing Partner of Short Hills Capital Partners.
Meanwhile, on the same segment, another frequent CNBC guest, Joe Terranova, sounded significantly more bullish on the near-term outlook of NVDA stock. Terranova is the Senior Managing Director of Virtus Investment.
Noting that he would be "uncomfortable" holding Nvidia Corporation (NASDAQ:NVDA) if its reaches its old high of around $150, Weiss suggested that a higher price would not be justified by the chip maker's current fundamentals. Calling his holdings of NVDA "a decent trading position," the investor said he would "most likely" unload all of his shares before the company reports its Q1 results.
"I've got enough tech exposure. Why take the risk of holding something I'm not committed to (into its earnings report)?" Weiss said.
The veteran investor pointed out that Abu Dhabi had recently agreed to buy 18,000 of Nvidia's chips for its data center, and he said that "demand (for NVDA's semiconductor) is coming from other places around the world."
And according to Terranova, Nvidia Corporation (NASDAQ:NVDA) CEO Jensen Huang has been "speaking with a lot of confidence in the last several days." Finally, Terranova reported that large investors have been buying meaningful amounts of the shares of NVDA and other chip makers recently.
"I wouldn't be surprised if after next week (NVDA stock) is higher than it is now," he concluded.
While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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