‘Way Too Early’: Expert Warns As Investors ‘Trading Out’ Of Nvidia, AMD, Microsoft And Other AI Stocks

Light Street Capital managing partner Glen Kacher has advised investors to hold onto their semiconductor stocks, suggesting that it’s still early to exit the market.

What Happened: Kacher pointed out that it might be too early to exit the semiconductor market. He suggested that it’s crucial for investors to determine whether the current investment cycle for building an AI infrastructure is akin to 1999 or 1995. This statement was made during an appearance on CNBC’s “Closing Bell” on Thursday.

Kacher believes that we are at the beginning of this investment cycle, making valuations reasonable for stocks at the moment.

The Light Street Capital executive also mentioned his “AI Five” picks, which include NVIDIA Corp (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Taiwan Semiconductor (NYSE:TSM), Broadcom (NASDAQ:AVGO), and Microsoft Corp (NASDAQ:MSFT).

See Also: Forget Doge, Shiba Inu: This Is Elon Musk’s New Favorite Meme Coin That Could Soon Explode, Analyst Predicts

Why It Matters: The semiconductor industry has been gaining significant popularity among investors, with chips emerging as crucial commodities. This is evident from the substantial cash inflows into the world’s largest semiconductor ETF, indicating a strong belief in the industry’s future.

Industry experts have also been bullish on specific semiconductor stocks. For instance, Tesla investor Ross Gerber strongly advised against selling Nvidia shares, emphasizing the potential of AI and the company’s valuation. Similarly, Wharton School finance professor Jeremy James Siegel suggested that Nvidia’s stock could double or triple as it continues to drive the U.S. equity market to new heights with its AI boom.

Despite the industry’s potential, some investors remain cautious. Citadel CEO Ken Griffin described the current stock market as a “tale of many worlds,” expressing uncertainty about the AI market bubble. However, he acknowledged that Nvidia is in a strong position.

Read Next: Pepe Leaps Into Action With 10% Daily Gain: ‘Elon Has No Issue Consistently Posting Pepe,’ VC Points Out

Image: Pete Linforth from Pixabay

Engineered by Benzinga Neuro, Edited by
Kaustubh Bagalkote

The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you.
Learn more.

More Sponsored Headlines