Eric Jackson, the Founder/President and Portfolio Manager of EMJ Capital, told CNBC yesterday that he had sold his Nvidia (NVDA) stock and bought shares of Alibaba (BABA).
“Alibaba is a better AI play than Nvidia at least through Q2 and maybe for the rest of the year,” Jackson said.
NVDA’s Technicals Have Been Poor, Jackson Says
NVDA “hasn’t been acting well since (its) earnings,” explained Jackson, adding that he is not impressed by the name’s charts. Additionally, he believes that small-cap stocks will produce higher gains in the shorter term than the Mag 7 names.
On the other hand, Jackson said that NVDA remains “a great company with great products.” He added that “the roadmap that the company recently presented was fantastic.”
BABA Is “Very Undervalued,” Jackson Says
BABA’s decision to spend more “reasonable” amounts on AI going forward is “smart,” according to the investor. Additionally, he believes that BABA “can surprise people with a DeepSeek-type announcement of their own,” and he thinks that the Chinese tech giant can make major acquisitions that will impress the market.
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This article is originally published at Insider Monkey.
