Nvidia is the clear pick amid the hype around companies in the artificial intelligence space, according to Tim Seymour, founder and chief investment officer of Seymour Asset Management. Conceptually, Nvidia is the “AI buy” in terms of its software and hardware capabilities, he said Thursday on CNBC’s “Fast Money.” Indeed, the semiconductor stock has soared by more than 50% this year, rising alongside other tech giants. Bank of America earlier this week raised its price target on the company to $255 per share from $215 and said Nvidia is well positioned to lead the “AI arms-race among global cloud and enterprise customers.” The bank’s new target suggests Nvidia’s stock could rally nearly 16% from Thursday’s closing price. To be sure, other “Fast Money” traders aren’t as bullish on current AI candidates. Consider Microsoft ‘s decline of 2.6% on Thursday. “Today’s selloff makes a lot of sense,” Private Advisor Group’s Guy Adami said, referring to the fall in Microsoft shares. “It got way ahead of itself.” Since Microsoft unveiled its new AI-powered Bing search engine and Edge browser last week, over a million people have signed up to test the Bing chatbot. Beta testers are discovering strange issues with it, including creepy interactions. Like Bing’s AI, Google’s competitor search tool Bard is facing similar problems with inaccuracies and odd responses, heightening concern about how large technology companies are attempting to bring AI to the forefront of public life with commercial products. When asked to consider Microsoft and Alphabet , investor and “Fast Money” panelist Bonawyn Eison picked Microsoft for safety and Alphabet for the long term, saying he thinks the Google parent stands to gain more upside. Shares of Microsoft are up 9.3% this year, and Alphabet’s are up 8.3%.
Nvidia is the ‘AI buy,’ says ‘Fast Money’ trader Tim Seymour
- Advertisement -