Nvidia (NVDA) Is 'Best Place to Hide Right Now,' Analyst Says
Speaking on CNBC recently, Chris Caso, a senior analyst at Wolfe Research, said that "the AI space and tariffs in particular are... the best places to hide right now."
More of Caso's Comments on NVDA
Nvidia's valuation is attractive, and the tech giant's recently announced decision to manufacture its upcoming chips at Taiwan Semi's (TSM) factories in Arizona "is real," since the facilities can manufacture those semiconductors, Caso stated.
Similarly, NVDA's plan to build some of its AI servers in the U.S. "makes absolute sense." In light of these devices high profit margins, NVDA will not be badly hurt by the added cost of manufacturing them in America, Caso explained.
Additionally, NVDA can avoid tariffs by manufacturing a portion of its products in Mexico, the analyst suggested.
Caso's Outlook on the Impact of Tariffs on the Chip Sector
Tariffs on consumer electronic products would meaningfully lower the demand for chips, Caso indicated. However, tariffs on the chips "would be less of a problem" because Chinese manufacturers put many chips into consumer electronic products, he stated.
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.
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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