Nvidia Corporation (NASDAQ: NVDA) is a “fallen angel” that continues to be a great pick for the long-term investors, according to Ankur Crawford – Portfolio Manager at Alger.
Nvidia has priced in the bad news
Crawford agreed there were challenges facing the semiconductor behemoth, but at the current discount (down nearly 60% for the year), she’s convinced much of the bad news is already factored in.
If there’s a new set of FAANG to come out, Nvidia will be anointed as one of them. I think it’s a buy here. Not saying it won’t go down at all, but it should relatively outperform over the next two years.
Earlier in September, the U.S. restricted Nvidia Corp from exporting two of its top chips to Beijing. Still, CEO Jensen Huang expects China to remain a big market for the company.
Last week, the multinational announced a bunch of new products and services at the GTC 2022.
Nvidia stock is a long-term play
In August, Nvidia blamed a 44% sequential hit to “gaming” for the second-quarter revenue that came in well below the Street expectations. Still, Crawford said on CNBC’s “Closing Bell: Overtime”:
It produces cash flow. There’s cyclical exposure to consumer, even to the data centre, which is slowing. But if you can look through 2024, it’s a business that’ll grow 30% for the next five years, because of the end markets they’re levered to.
Her bullish view is in line with Wall Street that also recommends you buy Nvidia stock as it has upside to $202 on average – about a 65% upside from here.
Another name she likes for the current macroeconomic environment is Eli Lilly & Co (NYSE: LLY).
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