Tech investor and portfolio manager Eric Jackson recently provided his analysis on the Magnificent Seven stocks in an interview with CNBC. Jackson, the founder of EMJ Capital, highlighted Apple Inc., Meta Platforms Inc., and Nvidia Corp. as his top picks among the Magnificent Seven stocks.
According to Jackson, Apple is an attractive investment due to the upcoming iPhone upgrade cycle. He also praised Meta Platforms as a leading example of a company profiting significantly from artificial intelligence. Additionally, Jackson identified Nvidia as the frontrunner in the AI space.
Although Jackson sold his shares in Amazon Inc. in July, he described the e-commerce giant’s stock as “darn” cheap. He noted that Amazon’s five-year forward price/earnings ratio is currently trading at an all-time low multiple. Jackson expressed confidence in the company’s recent earnings report and stated that Amazon remains on his radar. He plans to add Amazon to his portfolio in the coming weeks, just ahead of the next earnings season.
Jackson emphasized the importance of Nvidia in the current market, stating that a disappointing performance from the company would have significant implications. However, he expressed optimism, predicting that Nvidia would surprise investors with positive results. Jackson referred to statements made by ex-Google CEO Eric Schmidt and OpenAI’s Sam Altman, suggesting that hyperscalers and AI-focused companies could potentially spend $300 billion each on Nvidia AI over the next few years. If Nvidia secures these contracts, it would result in a substantial amount of revenue for the company.
While Jackson hinted at potential benefits for Advanced Micro Devices Inc. and Broadcom Inc., he believed that the majority, approximately 95%, of the revenue would go to Nvidia.
In Thursday’s trading session, Nvidia’s stock closed down 3.70% at $123.74.
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