A billion-dollar asset manager says investors should not overlook a secondary beneficiary of the AI chip boom, noting that the opportunity set extends beyond the market’s dominant winner, Nvidia (NVDA).
In a new CNBC interview, Alex Morris, CEO of the $18 billion asset management firm F/m Investments, names Nvidia rival AMD (AMD) as one of his top stock picks.
Morris says he sees AMD as a complementary play rather than a direct challenger to Nvidia.
“Don’t count out AMD. AMD is the sort of silver to Nvidia’s gold. And I think there’s a lot of upside there.”
Data shows that ARK Invest currently owns $492.9 million worth of AMD shares, the asset manager’s 8th-largest holding. ARK Invest founder Cathie Wood recently said that AMD is in a very good spot, as she believes the chipmaker is dominating the CPU market.
On top of AMD, Morris says he’s also bullish on the digital infrastructure solutions provider Vertiv (VRT). According to Morris, the broader AI buildout is also creating opportunities beyond chipmakers, particularly in the physical infrastructure required to support data center expansion.
“We also like names like Vertiv that are going to be pushing out cooling and other technologies that are on the back end of that AI infrastructure build.”
Morris adds that his firm is also looking outside the core AI trade, pointing to defense companies with diversified revenue streams that can smooth volatility tied to government spending cycles.
“And then, let’s not count out defense stocks, something like Raytheon, where you’ve got this defense play as part of the core, but this really great civil aviation background that kind of balances them out through all of the other lulls that happen in defense appropriation spending.”
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