Josh Brown Explains Why Nvidia (NVDA) Still the ‘Most Important Company

Josh Brown, CEO of Ritholtz Wealth Management, explained in a recent program on CNBC that AI remains the most important market theme and Nvidia (NASDAQ:NVDA) is the most important company related to the AI trade. Brown said companies are talking more about AI than tariffs and the technology is responsible for most of the broader market gains.

I want you to know and Michael Seymble at JP Morgan has actually done this research. The term AI was mentioned 2.6 times more often than the word tariff in this last round of S&P 500 earnings reports. And if you ask me what saved the stock market this April, I have to point to the massive gains in the Mag 7 and other AI-related names when one by one every single important CEO in cloud computing and chips and software came out and said, “Not only are we affirming our spending guide for capex, in some cases we’re actually raising it.” If we didn’t get that, we’re not in an S&P that’s 3% from the high. Anyone who wants to disagree with me can, but they’ll be wrong. And I have the data to back it up. This is an AI-driven tape. This is still the most important theme in the entire market. Yes, there are other themes. Yes, there are other sectors doing well, but apps and AI—there’s just no chance that we would have pulled this spring out of the hole the way that we have. And that’s because of the affirmed guidance on what’s happening with this investment mega theme. So that’s how I feel about AI in general. And Nvidia is the most important company. Nvidia’s situation is it’s the sun, and AI is a solar system revolving around it. So I’m long. I don’t know. There’s a lot of words to tell you what you already know.

A close-up of a colorful high-end graphics card being plugged in to a gaming computer.

Polen Global Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) (not owned) is a large index constituent that saw share prices fall nearly 20% in the quarter. In recent years, NVIDIA has become the poster child of the generative AI infrastructure build out, given the critical role of its Graphics Processing Units (GPUs) in powering the technology. In late January, the stock sold off more than 17% in a single day on the back of the DeepSeek news out of China. The news prompted investors to question the need for growing GPU-related capex if large language models (LLMs) could achieve similar results more cost-effectively. While the stock partially recovered in the following weeks, concerns again intensified on news that NVIDIA’s leading-edge Blackwell GPUs— banned from export to China—were making their way to China via a Singapore-based shadow network. This revelation—combined with mounting U.S.-China geopolitical tensions—introduced new concerns that the U.S. could take an even more restrictive stance on exports to China. Consistent with our commentary over the past couple of years, we maintain a cautious stance around NVIDIA, given our inability to predict its long-term growth with a high degree of confidence.”

While we acknowledge the potential of NVDA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.