In this article, we will discuss the top 10 stock picks from Louis Navellier’s firm, Navellier & Associates.
Founded in 1987 by growth analyst Louis Navellier, Navellier & Associates is an independent firm based in Reno, Nevada. Navellier & Associates specializes in identifying market inefficiencies to find top-growth stocks through a disciplined quantitative and fundamental analysis system. With over 30 years of experience, they offer customized portfolio strategies for individual investors to maximize returns while managing risk. Unlike competitors who mimic indexes, Navellier aims to outperform them, resulting in low correlation with benchmarks and increased diversification.
Louis Navellier is the Founder, Chairman of the Board, Chief Investment Officer, and Chief Compliance Officer of Navellier & Associates, Inc. With decades of experience applying academic techniques to real market scenarios, he advocates for disciplined quantitative analysis to identify stocks that can outperform the market. His approach involves a rigorous three-step process: quantitative analysis, fundamental analysis, and optimization of selected securities for portfolio inclusion. This approach has been used by the firm where they employ a highly disciplined, bottom-up stock-selection process for most portfolios. First, they screen market and stock statistics to measure reward (alpha) and risk (standard deviation), selecting stocks in the top percentiles. Next, they further screen the top-ranked stocks for high-profit margins, strong earnings growth, and reasonable price/earnings ratios based on future earnings. Finally, a proprietary optimization model maximizes portfolio alpha while minimizing standard deviation, creating well-diversified portfolios across various sectors and industries.
Louis Navellier of Navellier & Associates
Since 1980, he has shared his insights through the MPT Review, a stock advisory newsletter. Since 1987, he has actively managed individual portfolios, mutual funds, and institutional portfolios. Known for his charismatic leadership, Louis Navellier has been featured extensively in international media, including CNBC, Bloomberg, The Nightly Business Report, and Wall Street Week. His insights have also been highlighted in Barron’s, Forbes, Fortune, Investor’s Business Daily, Money, Smart Money, and The Wall Street Journal. He has been profiled in books such as Kenneth A. Stern’s “Secrets of the Investment All-Stars” and Alan R. Ackerman’s “Investing Under Fire.” Mr. Navellier earned his B.S. in business administration in 1978 and his M.B.A. in finance in 1979 from California State University – Hayward.
Navellier & Associates is a well-known advisory firm with 1,314 clients and manages assets worth $743,578,818, as reported in their Form ADV from March 2024. Their Q1 2024 filing shows they handle $811,568,534 in securities, with the top 10 holdings making up 29.01% of the total.
Our Methodology
This article covers Navellier & Associates’ top 10 stock picks for the first quarter of 2024. We’ve included analyst ratings and key details about these companies, along with the number of hedge funds investing in each. Why focus on hedge fund investments? Our research indicates that copying the top picks of leading hedge funds can result in better-than-market returns. Our quarterly newsletter’s strategy, which chooses 14 small-cap and large-cap stocks each quarter, has achieved a 275% return since May 2014, outperforming the benchmark by 150 percentage points. (see more details here)
10 Best Stocks to Buy According to Navellier & Associates
10. Phillips 66 (NYSE:PSX)
Navellier & Associates’ Stake Value: $13,550,563
Number of Hedge Fund Holders: 35
Phillips 66 (NYSE:PSX), an American energy company in Houston, Texas, ranked 29th on the Fortune 500 and 74th on the Fortune Global 500 in 2022, with over $115 billion in revenue. Phillips 66 (NYSE:PSX) has 12 refineries that process 1.8 million barrels of oil daily. In 2023, they started converting their Rodeo, California facility to produce renewable diesel. Their midstream segment handles transportation and NGL processing, with DCP Midstream managing 600,000 barrels per day and 22,000 miles of pipelines.
Several analysts have given positive ratings for Phillips 66 (NYSE:PSX) and increased their price targets. For example, JP Morgan raised its target to $167, and Goldman Sachs set theirs at $174, showing strong confidence in Phillips 66 (NYSE:PSX)’s future. The average 12-month price target among analysts has also gone up, indicating optimism about Phillips 66 (NYSE:PSX)’s outlook.
Phillips 66 (NYSE:PSX) landed on the 10th spot of Navellier & Associates’ top 10 stock picks. At the end of the first quarter of 2024, Navellier & Associates owned 82,959 shares of Phillips 66 (NYSE:PSX), valued at $13,550,563. This investment made up 1.66% of Navellier & Associates’ portfolio, according to regulatory filings.
Aristotle Capital’s Value Equity Strategy stated the following regarding Phillips 66 (NYSE:PSX) in its first quarter 2024 investor letter:
“During the quarter, we sold our positions in Phillips 66 (NYSE:PSX) and Sysco Corporation (NYSE:SYY) and invested in two new positions: Lowe’s Companies, Inc. (NYSE:LOW) and TotalEnergies SE (NYSE:TTE).
We first purchased Phillips 66, the energy manufacturing and logistics company, in the third quarter of 2012. During our over decade-long ownership period, the company transformed itself from a predominately refining operation to a significantly more diversified energy business. In 2012, refining represented nearly 75% of earnings, and today it is less than half. With the expansion of other businesses, including midstream which is underpinned by long-term fee-based contracts, as well as chemicals and marketing, we believe Phillips 66 has reduced its cyclicality while enhancing FREE cash flow generation, supporting increased returns to shareholders. In addition, the company has started to position itself for the energy transition and remains on track to convert its San Francisco refinery into one of the world’s largest renewable fuels facilities. While we continue to believe Phillips 66 is a high-quality company on the path to further improvement, we decided to sell our shares to fund the purchase of what we consider a more suitable and attractive investment in TotalEnergies.”
9. Microsoft Corporation (NASDAQ:MSFT)
Navellier & Associates’ Stake Value: $14,393,224
Number of Hedge Fund Holders: 293
Microsoft Corporation (NASDAQ:MSFT) ranks 9th in Navellier & Associates’ top 10 stock picks. Microsoft Corporation (NASDAQ:MSFT) develops and supports software, services, devices, and solutions. Microsoft Corporation (NASDAQ:MSFT) is mainly driven by its advancements in artificial intelligence (AI) and cloud services, which are expected to increase its revenue and strengthen its market position greatly. Microsoft Corporation (NASDAQ:MSFT)’s AI capabilities, particularly through Azure and its integration with OpenAI technologies, are set to drive major revenue growth. Analysts predict Azure’s yearly revenue could reach $76 billion, powered by increasing AI workloads and strong partnerships with OpenAI and GitHub.
Additionally, Microsoft Corporation (NASDAQ:MSFT)’s Copilot, which embeds AI into its software, is expected to be a key growth factor. Analysts anticipate over 50% of Microsoft Corporation (NASDAQ:MSFT)’s users will adopt Copilot for business within three years, potentially adding $20 billion to revenue by FY25. Due to these factors, analysts like JP Morgan have raised their price targets, with JP Morgan setting theirs at $455, reflecting strong confidence in Microsoft Corporation (NASDAQ:MSFT)’s future performance.
ClearBridge Sustainability Leaders Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q2 2024 investor letter:
“The Strategy trailed the Russell 3000 Index benchmark largely due to our diversified positioning, although we maintain a considerable portfolio allocation to large cap AI-related companies. These positions were indeed among our top contributors in the quarter, such as Microsoft Corporation (NASDAQ:MSFT). The company is finding more ways to deploy AI for sustainability objectives such as its ability to better measure, predict and optimize complex systems, which can help its partner communities reduce wildfire risk.”
8. Novo Nordisk A/S (NYSE:NVO)
Navellier & Associates’ Stake Value: $14,615,900
Number of Hedge Fund Holders: 60
Ranking 8th in Navellier & Associates’ top 10 stock picks is Novo Nordisk A/S (NYSE:NVO). Novo Nordisk A/S (NYSE:NVO)is a global healthcare company that is leading the fight against diabetes and obesity. Novo Nordisk A/S (NYSE:NVO) showcases a strong financial performance and a robust product pipeline. Established in Denmark in 1923, Novo Nordisk A/S (NYSE:NVO) has a long history of innovation in the healthcare sector.
Novo Nordisk A/S (NYSE:NVO) reported a 19% increase in Q1 2024 revenue, reaching $9.4 billion. Its key growth drivers include GLP-1 diabetes treatments like Ozempic and obesity drugs such as Wegovy. Analysts have maintained their positive outlook on Novo Nordisk A/S (NYSE:NVO), raising price targets. For instance, BMO Capital has set a target of $163 for Novo Nordisk A/S (NYSE:NVO)’s stock. At the end of Q1 2024, Navellier & Associates held 113,831 shares of Novo Nordisk A/S (NYSE:NVO), valued at $14,615,900. This investment made up 1.8% of Navellier & Associates’ portfolio, according to regulatory filings.
Artisan Global Equity Fund stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its Q1 2024 investor letter:
“In addition, shares of Novo Nordisk A/S (NYSE:NVO) rose after it reported phase 1 clinical trial results for its new experimental obesity drug Amycretin, a single molecule that operates as a GLP-1 receptor agonist, reducing one’s appetite. The new oral treatment achieved a 13.1% average weight loss after 12 weeks, more than doubling the efficacy of Wegovy for the same time span. This result also bested Lilly’s Orfoglipron, another experimental drug that achieved 5%–6% average weight loss earlier in its trials. While the Amycretin data are preliminary, investors were encouraged by the prospects of Novo Nordisk solidifying a best-in-class obesity designation, a desirable status given rising competition. In our view, Novo Nordisk has the best obesity/Type 2 diabetes pipeline in the industry, which should help protect this franchise from competition over the next 10 years.”
7. ConocoPhillips (NYSE:COP)
Navellier & Associates’ Stake Value: $16,413,037
Number of Hedge Fund Holders: 62
ConocoPhillips (NYSE:COP) is a key player in the oil and gas exploration and production industry, boasting extensive assets and operations. ConocoPhillips (NYSE:COP) boosts profitability through high-margin projects and disciplined capital allocation. Strategic acquisitions, like Concho Resources, enhance its production and cost efficiency. ConocoPhillips (NYSE:COP) also expects rising oil prices to further increase revenue.
By 2026, ConocoPhillips (NYSE:COP) plans to spend $10 billion annually on capital projects and reduce debt by $5 billion, aiming to generate $115 billion in free cash flow and grow production by 5% over the next decade. ConocoPhillips (NYSE:COP) ranks 7th in Navellier & Associates’ top 10 stock picks. By the end of the first quarter of 2024, Navellier & Associates held 128,952 shares of ConocoPhillips (NYSE:COP), valued at $16,413,037. This represented 2.02% of their total portfolio, as shown in their regulatory filings.
6. Quanta Services Inc. (NYSE:PWR)
Navellier & Associates’ Stake Value: $18,857,853
Number of Hedge Fund Holders: 56
Quanta Services Inc. (NYSE:PWR) is a leading provider of specialized contracting services for infrastructure and energy. Its work in growing areas like renewable energy, telecommunications, and utilities makes it well-positioned for future growth. Recently, Quanta Services Inc. (NYSE:PWR) has completed the acquisition of Cupertino Electric for approximately $1.54 billion, which includes $1.3 billion in cash and 883,000 shares of Quanta valued at about $225 million. There’s also a potential additional payment of up to $200 million based on financial targets. The deal is expected to boost Quanta Services Inc. (NYSE:PWR)’s growth, cash flow, and earnings per share right away, with projected contributions of $175-$195 million to adjusted core profit and $0.40-$0.50 to adjusted diluted EPS for FY25.
Quanta Services Inc. (NYSE:PWR) landed on the 6th spot of Navellier & Associates’ top 10 stock picks. By the end of the first quarter of 2024, Navellier & Associates held 72,586 shares of Quanta Services Inc. (NYSE:PWR), valued at $18,857,853. This made up 2.32% of their total portfolio, as reported in their regulatory filings.
Artisan Mid Cap Fund stated the following regarding Quanta Services, Inc. (NYSE:PWR) in its fourth quarter 2023 investor letter:
“Along with DexCom, Inc. (NASDAQ:DXCM), notable adds in the quarter included Quanta Services, Inc. (NYSE:PWR) and Jabil Inc. (NYSE:JBL). Quanta provides outsourced skilled labor for maintenance and construction services, primarily to utilities. We have followed the company for over a decade and have witnessed its shift from oil and gas to renewables. The energy transition (solar and wind farms, electric vehicles, etc.) requires investments in the US energy grid to support greater electrification. At the same time, climate change is increasing stress on the existing grid, forcing utilities to increase maintenance spending. Furthermore, Federal incentive programs, such as the Inflation Reduction Act and Bipartisan Infrastructure Act, will help fuel Quanta’s long-term growth given its expertise in transmission and distribution connections as renewable energy infrastructure seeks to connect to the grid. The stock sold off early in the quarter on concerns that higher interest rates would lead to a pullback in renewables investments by utility customers. However, based on our industry research, we think Quanta’s key customers are well resourced and committed to meeting long-term electrification needs via infrastructure investment. We used the selloff as an opportunity to move the position into the CropSM at a more attractive valuation.”
5. Exxon Mobil Corporation (NYSE:XOM)
Navellier & Associates’ Stake Value: $19,743,376
Number of Hedge Fund Holders: 81
Exxon Mobil Corporation (NYSE:XOM) is one of the largest energy and chemical companies in the world. It was founded in 1999 when Exxon and Mobil, both originally part of John D. Rockefeller’s Standard Oil Company, merged. Exxon Mobil Corporation (NYSE:XOM) recently completed its acquisition of Pioneer Natural Resources. As part of the deal, Pioneer shareholders received 2.3234 shares of Exxon Mobil Corporation (NYSE:XOM) for each Pioneer share they owned. This acquisition significantly expands Exxon Mobil Corporation (NYSE:XOM)’s operations in the Permian Basin, effectively doubling its presence in the region.
In Q1 2024, Exxon Mobil Corporation (NYSE:XOM) reported earnings of $2.06 per share. Analysts predict that for the full fiscal year 2024, Exxon Mobil Corporation (NYSE:XOM)’s earnings per share (EPS) will decrease by 6.84% year-over-year. However, they expect a rebound with a 7.18% increase in EPS for FY 2025, followed by an additional 4.69% increase in FY 2026.
At the end of Q1 2024, Exxon Mobil Corporation (NYSE:XOM) ranks 5th in Navellier & Associates’ top 10 stock picks, as they held 169,850 shares of Exxon Mobil Corporation (NYSE:XOM), valued at $19,743,376. This investment made up 2.43% of their total portfolio, as stated in regulatory filings.
Madison Dividend Income Fund stated the following regarding Exxon Mobil Corporation (NYSE:XOM) in its first quarter 2024 investor letter:
“This quarter we are highlighting Exxon Mobil Corporation (NYSE:XOM) as a relative yield example in the Energy sector. XOM is a leading integrated oil and natural gas company. It has upstream assets that develop and produce oil and natural gas, along with downstream refining and chemical manufacturing assets. We believe it has attractive low-cost acreage in the Permian basin and has a sizeable growth opportunity in Guyana. Further, we think XOM has a sustainable competitive advantage due to size and scale, and its ability to integrate refining and chemical assets provides a low-cost advantage versus competitors.
Our thesis on XOM is that it will grow production volumes of oil and gas moderately over the next few years, while limiting excessive capital investment that plagued the industry from 2014-2020. Production growth will come from its 2023 acquisition of Pioneer Natural Resources, which is the largest producer in the Permian basin. XOM plans to double its Permian output by 2027, to 2 million barrels per day. Capital spending will be limited to $20-25 billion per year through 2027, which should allow for significant amounts of cash to be returned to shareholders including a $35 billion share repurchase program and continued dividend increases. Higher oil prices would provide a tailwind to our thesis but are not necessary. We think XOM can grow earnings and cash flow if oil prices remain above $60 per barrel…” (Click here to read the full text)
4. Eli Lilly and Company (NYSE: LLY)
Navellier & Associates’ Stake Value: $19,919,729
Number of Hedge Fund Holders: 109
Eli Lilly and Company (NYSE:LLY) landed in the 4th spot in Navellier & Associates’ top 10 stock picks. Established in 1876, Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical firm known for its innovative medications. It has developed major treatments for diabetes, cancer, and mental health. Its GLP-1 drugs, Mounjaro for diabetes and Zepbound for obesity are showing strong growth and fit into the growing trend for weight loss treatments. Recently, Eli Lilly and Company (NYSE:LLY) announced it will acquire Morphic Holding (NASDAQ:MORF) for $57 per share, totaling $3.2 billion. This move gives Eli Lilly and Company (NYSE:LLY) a chance to enter the IBD market, despite some risks with MORF-057 and its pipeline.
For the recent quarter, Eli Lilly and Company (NYSE:LLY) has experienced notable revenue and operating income growth. Between 2020 and the past 12 months, its EBITDA rose from $8.26 billion to $13.55 billion. Analysts view Eli Lilly and Company (NYSE:LLY) favorably, with a consensus rating of “Moderate Buy” and an average stock price target of about $858.72. By the end of the first quarter of 2024, Navellier & Associates reported holding 25,605 shares of Eli Lilly and Company (NYSE:LLY), valued at $19,919,729. This investment made up 2.45% of their portfolio, based on regulatory filings.
Baron Health Care Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its first quarter 2024 investor letter:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company that discovers, develops, manufactures, and sells medicines in the categories of diabetes, oncology, neuroscience, and immunology, among other areas. Stock performance was strong due to robust fourth quarter sales of Mounjaro/ Zepbound, better-than-anticipated initial guidance for fiscal year 2024, and ongoing enthusiasm surrounding the company’s obesity and diabetes franchises. We continue to think Lilly is well positioned to grow revenue and earnings at attractive rates through the end of the decade and beyond.”
3. Emcor Group Inc. (NYSE:EME)
Navellier & Associates’ Stake Value: $22,488,793
Number of Hedge Fund Holders: 41
Ranking 3rd in Navellier & Associates’ top 10 stock picks is Emcor Group Inc. (NYSE:EME). Emcor Group Inc. (NYSE:EME) is a leading company in mechanical and electrical construction and facilities management. Established in 1994 and based in Norwalk, Connecticut, Emcor Group Inc. (NYSE:EME) works in many areas, including commercial, industrial, and institutional markets. In Q1 2024, Emcor Group Inc. (NYSE:EME)’s margins improved due to better performance in U.S. construction, including a favorable revenue mix, improved project execution, and strong pricing. Investments in virtual design, prefabrication, and automation also boosted productivity, leading to a 210 basis point increase in gross margin to 17.2% and a 220 basis point increase in adjusted operating margin to 7.6%.
GS Analytics sees strong growth potential for Emcor Group Inc. (NYSE:EME) both in the short and long term. Emcor Group Inc. (NYSE:EME) is trading at 23.22 times the FY24 EPS estimate of $16.25 and 21.82 times the FY25 EPS estimate of $17.29. Earnings per share (EPS) are expected to rise by 21.78% this year and 6.43% next year, while revenue is projected to grow by 14.11% this year and 7.69% by 2025. By the end of Q1 2024, Navellier & Associates reported holding 64,217 shares of Emcor Group Inc. (NYSE:EME), valued at $22,488,793. This investment made up 2.77% of their total portfolio.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding EMCOR Group, Inc. (NYSE:EME) in its first quarter 2024 investor letter:
“Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. EMCOR Group, Inc. (NYSE:EME) supplies electrical, mechanical, and facilities services. The company’s strong results fueled a 62% increase in the stock price. Highlights from the quarter included improved margins and a record level of backlog. We trimmed the position on this strength.”
2. Super Micro Computer, Inc. (NASDAQ:SMCI)
Navellier & Associates’ Stake Value: $42,017,248
Number of Hedge Fund Holders: 35
Securing the 2nd spot in Navellier & Associates’ top 10 stock picks is Super Micro Computer, Inc. (NASDAQ:SMCI). Super Micro Computer, Inc. (NASDAQ:SMCI) specializes in high-performance computing solutions, which are increasingly in demand due to the growth of data centers, cloud computing, and AI. Super Micro Computer, Inc. (NASDAQ:SMCI) is recognized for its innovative products, including servers and storage systems. Recently, Super Micro Computer, Inc. (NASDAQ:SMCI) reported a 46% increase in revenue and a 65% rise in EPS over the past year. This strong revenue growth is largely driven by the rising need for AI and data center solutions.
Analyst Mike Zaccardi has a hold rating on Super Micro Computer, Inc. (NASDAQ:SMCI). After a strong start to 2024, Super Micro Computer, Inc. (NASDAQ:SMCI) has stabilized and is now near a fair price. Given the potential for seasonal downturns and a neutral chart, he expects the stock to remain at its current levels for the next few months. Super Micro Computer, Inc. (NASDAQ:SMCI) is expected to report an earnings per share (EPS) of $3.87 for fiscal year 2024, up significantly from $2.46 the previous year. By the end of the first quarter of 2024, Navellier & Associates held 41,600 shares of Super Micro Computer, Inc. (NASDAQ:SMCI), valued at $42,017,248. This investment made up 5.17% of their total portfolio, according to regulatory filings.
The Brown Capital Management Small Company Fund stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its first quarter 2024 investor letter:
“We are benchmark-agnostic, so we spend our time researching current or potential EGCs, not analyzing indexes. However, this quarter there was inescapable attention on one AI-related company, Super Micro Computer, Inc. (NASDAQ:SMCI), which makes servers that hold NVIDIA Corporation (NASDAQ:NVDA) graphics processing units. Pundits wondered if Super Micro was the next AI “meme stock” set to soar like Nvidia. Super Micro’s stock price was up 255% in the first quarter and indeed is up a jaw-dropping 848% in the last year. Importantly, Super Micro is in the Russell 2000® Growth index, and alone accounted for over a third, or 2.82%, of the index’s 7.58% total return this quarter. However, Super Micro is not a company we could have ever owned. The company generated more than $7 billion in revenue in its last fiscal year, far above our current maximum revenue threshold. In fact, when the company came public in March 2007, it was already too large for our portfolio. Now, the company is so large that it moved into the S&P 500 index at the end of the first quarter. Nevertheless, not owning Super Micro was the largest detractor to our performance versus the index this quarter, comprising more than one-third of our underperformance. This, to us, is a reminder why an index is not always an accurate gauge of our short-term performance.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Navellier & Associates’ Stake Value: $53,432,970
Number of Hedge Fund Holders: 186
NVIDIA Corporation (NASDAQ:NVDA) ranks first in Navellier & Associates’ top 10 stock picks, holding 591,360 shares valued at $53,432,970. This investment makes up 6.58% of Navellier & Associates’ portfolio. NVIDIA Corporation (NASDAQ:NVDA) is a leader in graphics processing units (GPUs), which are crucial for AI and machine learning. Additionally, NVIDIA Corporation (NASDAQ:NVDA) is expanding into new markets such as data centers, automotive technology, and edge computing, which helps reduce risk and opens up more revenue opportunities.
NVIDIA Corporation (NASDAQ:NVDA)’s opportunity is huge, as seen with AI startup CoreWeave, which recently hit a $19 billion valuation due to its use of NVIDIA GPUs. As reported by CNBC, NVIDIA Corporation (NASDAQ:NVDA) controls 80% of the AI chip market, potentially translating to $1.8 trillion in sales with high profit margins. For fiscal year 2024, NVIDIA Corporation (NASDAQ:NVDA) is projected to generate $31.5 billion in revenue, up from $26.9 billion the previous year, thanks to strong demand for its GPUs in AI and data centers. NVIDIA Corporation (NASDAQ:NVDA)’s earnings per share (EPS) are expected to increase to $10.15, from $8.73 last year, and its gross margins are also expected to stay high at around 66%.
Polen Focus Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“In the second quarter, the dominant narrative in markets continued to be generative AI (GenAI). If it wasn’t immediately evident from NVIDIA Corporation’s (NASDAQ:NVDA) meteoric rise to among the largest companies in the world, one need only look so far as the Semiconductor and Technology Hardware industries as a gauge of sentiment, collectively accounting for greater than 70% of the Russell 1000 Growth (“the Index”) and 85% of the S&P 500 headline return quarter to date.
Our Portfolio has no exposure to NVIDIA or other Semiconductor companies currently benefiting from demand for foundational AI Hardware. The largest relative detractors in the quarter were NVIDIA, Apple, and Salesforce.
For the second quarter in a row, NVIDIA represented the top detractor to relative performance as the stock climbed another 37%, bringing the year-to-date return to +150%. As of this writing, NVIDIA is the third largest company in the world, but for a brief moment, it surpassed Microsoft to become the largest company in the world. Yet again, the company delivered blowout results that surpassed already lofty expectations, reinforcing the narrative that NVIDIA is the only obvious “AI winner” due to the amount of revenue it is currently generating…” (Click here to rad the full text)
While we recognize NVIDIA Corporation (NASDAQ: NVDA)’s growth potential, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
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