The Weekly Buzzing Stocks by Billy Kawasaki NVIDIA Corporation NVDA-Q TOP PICK Apr 17, 2025

He believes in their earnings. AI chip spending will rise when NVDA rolls out a new chip next year. He's concerned about the death cross on its chart though. He needs to see the stock break out.

He targets $174 over 12 months. They make a ton of money and have tremendous margins, and are deploying that cash into robotics and Agentic AI. It's not only about their GPUs.

He believes in the new AI-powered industrial revolution where everything needs NVDA's GPUs. However, he sees shares coming down from here, and tonight's tariffs make it worse. Trades below 25x PE this year is cheap. Expect turbulence.

Is -19.29% for the first quarter of 2025. NVDA often has these hideous declines, but historically it often bounces back, though this drop is lower than others.

It broke to the downside. Because it's widely held, subject to a lot of volatility. Worth looking at around $90-95, as that's where a whole bunch of new dollars came in. Company is positive on its chip demand. This market throws baby out with bathwater; good chance to dip in on a good company.

His pick in the sector is TSM, which makes the chips for NVDA and the like. It's more diversified. Valuation is cheaper. Much clearer growth path going forward over next few years.

NVDA has fallen, but it's not a cheap stock. Factored into the share price is a huge growth expectation. Just because share price has fallen on a high flyer, that doesn't necessarily make it cheap.

Is -36% from highs. Own, don't trade it. Its AI isn't slowing, but investors in this market are selling everything AI. Buying into weakness has hurt, so step back and wait. Trades at only 21x PE and is the highest-quality company in the world. This stock will bounce back eventually.

Before you look at individual names, it's really important to understand the type of market we're in. What's happening in tech right now is not healthy. This name held up much longer than most of the index, but every stock in that index is broken. Great company, but don't have FOMO. Sector doesn't have tailwinds right now.

He'd use broad money flows out of tech to enter tech. Phenomenal business economics. Don't look at its PE, just look at free cashflow. Compare price to FCF, invert that, and you get the FCF yield. Domestic demand and demand ex-Asia are still quite robust. Growth at a reasonable price here. If you've had your eye on this for a while, use this pullback to get in.

A lot of its customers are looking to get into the design business. Longer term that will have an impact. He owns TSM instead.