Nvidia unveiled its 'plan B' for 'inevitable' AI spending slowdown
Nvidia (NVDA) CEO Jensen Huang delivered the keynote address at CES 2025, providing investors with an update on the chipmaker's artificial intelligence (AI) ambitions. Harvest Portfolio Management chief investment officer and portfolio manager Paul Meeks joins Seana Smith and Brad Smith on Morning Brief to discuss Nvidia's growth opportunities. "It's critical for Nvidia to show that when AI infrastructure spending starts to slow, and it's inevitable, it will slow at some point, that they have a plan B," Meeks says, explaining, "The plan B is essentially putting AI on board with their project digits, more and more capability for AI away from the data center and into things like the latest laptops and smartphones." The portfolio manager says, "I am pretty intrigued about the opportunity for the humanoid robots. But in the short, intermediate, and probably even multiyear term, the straw that is going to stir this drink is AI GPUs in the data center." He says the "key areas" of growth for Nvidia are autonomous driving and humanoid robots, while he's "not so bullish on AI on board and consumer electronics like smartphones and PCs." Meeks, who owns Nvidia shares, tells Yahoo Finance that other names he owns in the space are Broadcom (AVGO), Marvell (MRVL), and Micron (MU). He highlights Micron and Uber (UBER) as "derivative AI plays." To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Naomi Buchanan.
