Also, how Morningstar CEO Kunal Kapoor is thinking about the AI boom.
Nvidia counts several of its Magnificent Seven pals as customers buying its sophisticated AI chips. And the world’s most valuable company says it could earn even more if geopolitical tensions between the US and China eased. But investors are debating whether the market is experiencing an AI boom or AI bubble. How should buy-and-hold investors think about investing in AI—are there any undervalued stocks left today? Dave Sekera is chief US market strategist at Morningstar Research Services and co-host of The Morning Filter podcast.
Learn about the new Morningstar Medalist Ratings for semiliquid funds during a live webinar on Morningstar’s YouTube channel on Wednesday, Sept. 10. CEO Kunal Kapoor and ETF and Passive Strategies Research Director Bryan Armour will discuss what investors should know about private assets and the first funds to earn the new rating on the Investors First series.
00:54 Welcome back to Investing Insights, Dave. Nvidia recently wrapped up the Magnificent Seven’s earnings season showing AI spending is still strong. What does this mean for the tech-driven stock market rally?
02:36 Do you think investors’ expectations for these mega-cap names are unreasonably high? Why or why not?
04:05 Nvidia NVDA is sitting at the center of a geopolitical rivalry between US and China. The company says they didn’t sell its sophisticated AI chips to China in the previous quarter, and that a $50 billion opportunity exists. What do you make of this bottleneck and its impact?
05:32 Many market watchers are divided over whether the current environment is an AI boom or AI bubble. Can you talk about Morningstar’s outlook?
08:06 How should buy-and-hold investors think about investing in artificial intelligence?
09: 05 What are the most undervalued AI stocks right now?
13:19 What do you think about the big bets Wall Street and Main Street are making on AI? What do you think individual investors should keep in mind?
14:33 How is AI transforming Morningstar?
Read about topics from this episode.
Subscribe to The Morning Filter on Apple Podcasts, or wherever you get your podcasts. https://www.morningstar.com/stocks/5-stocks-buy-before-their-big-discounts-disappear-2
5 Stocks to Buy Before Their Big Discounts Disappear https://www.morningstar.com/stocks/5-stocks-buy-before-their-big-discounts-disappear-2
Marvell Earnings: Buy the Dip and Focus on the Fundamentals https://www.morningstar.com/stocks/marvell-earnings-buy-dip-focus-fundamentals
Nvidia Earnings: No Signs of a Slowdown in Demand for AI Chips https://www.morningstar.com/stocks/nvidia-earnings-no-signs-slowdown-demand-ai-chips
These Are the Best Mag Seven Stocks to Consider for AI Investing https://www.morningstar.com/stocks/these-are-best-mag-seven-stocks-consider-ai-investing
The Best AI Stocks to Buy Now https://www.morningstar.com/stocks/best-ai-stocks-buy-now
Investors First: Evolving Expectations and Expanding Access https://www.morningstar.com/financial-advisors/investors-first-evolving-expectations-expanding-access
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Read what our team is writing.
David Sekera https://www.morningstar.com/people/david-sekera
Kunal Kapoor https://www.morningstar.com/company/about-us/kunal
Ivanna Hampton https://www.morningstar.com/people/ivanna-hampton
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