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As Nvidia (NVDA) makes headlines, Clockwise Capital chief investment officer James Cakmak joins Seana Smith and Brad Smith on Morning Brief to discuss his concerns with the artificial intelligence (AI) chipmaker's stock and other options for the AI trade.
"There is a lot of risk — you can't sugarcoat it — but the good news is that expectations have come down significantly over the last two weeks or so," Cakmak says about Nvidia's current valuation, adding, "The setup, we think, is incrementally starting to skew a little bit positive but not positive enough where you want to bet the farm on it."
The strategist highlights Taiwan Semiconductor Manufacturer (TSM) and ASML (ASML), saying these names have been more appealing investment opportunities because "the demand is sufficiently there while you have a lower bar in terms of expectations."
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.