Nvidia is not a ‘good bet’ long term: Analyst

During Thursday afternoon, Nvidia (NVDA) experienced a slight drop in its stock price. CapWealth founder and chief investment officer, Tim Pagliara, shares his insights on Nvidia’s recent performance and highlights key concerns for the tech giant and its customers.

Pagliara suggests that a more promising investment than Nvidia is to focus on companies that provide the supporting infrastructure for AI. He emphasizes that the energy consumption of AI is significantly higher than traditional search methods, and this aspect has yet to be fully recognized by the market. As a result, he sees potential for energy companies like GE Vernova (GEV) to benefit from this trend. Pagliara believes that investing in such companies can yield sustainable long-term returns, as the utility, industry, and grid infrastructure are in need of upgrading regardless.