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Nvidia (NVDA) Stock Identified as Top AI Stock by Veteran Investor

Doug Clinton, the CEO of Intelligent Alpha, told CNBC recently that Nvidia (NVDA) is his “top AI pick.” Intelligent Alpha uses AI to create its stock portfolio, Clinton noted.

Why Clinton Is Bullish on NVDA

“The bottom line is that Nvidia is changing hands for 21 times its forward earnings, and the earnings (estimates) are pretty solid,” Clinton stated.

That’s because China is “derisked” at this point for Nvidia, while the large cloud-infrastructure players are going to keep spending huge amounts on AI “no matter what happens with the economy,” Clinton explained.  As a result, those firms will keep buying Nvidia’s chips, he predicted.

And in general, the “huge demand” for AI is poised to keep “increasing and accelerating,” enabling NVDA to continue selling more chips, the veteran investor contended. He added that these upcoming demand increases are not yet reflected in AI stocks.

More About NVDA

Analysts on average expect NVDA’s earnings per share to reach $4.42 this year and $5.67 in 2026, up from $2.99 in 2024.

In the last month, the stock has fallen 18%, while it has plunged 30% in the last three months.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

This article is originally published at Insider Monkey.