Why a Cautious, Longtime Investor Is Rather Bullish on NVDA

Harvest Portfolio Management Chief Investment Officer​​ Paul Meeks is cautious on the Mag 7 overall, suggesting that investors not buy any of the names until after they report their first-quarter earnings.

Moreover, he does not believe that any of the companies will have much confidence in their outlooks, and he does not expect AI to be widely used until 2027.

But in a recent interview with Yahoo Finance, the veteran investor explained why he's quite bullish on NVDA.

Nvidia Has a Low Valuation, Strong Demand

NVDA "never got to a stretched valuation," and the demand for its products remains "voracious," Meeks believes.

In general, the company should continue to deliver strong results, and the shares "should be pretty attractive, even for value investors," Meeks contended.

But he did warn that analysts' estimates for the company could drop "a little" as the large cloud-infrastructure companies reduce their AI outlays and the tariffs on China take a toll on NVDA.

The Recent Performance of NVDA Stock

In the last month, the shares have dropped 5%, while they are down 28% in the last three months.

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.

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Disclosure: None. This article is originally published at Insider Monkey.