In this CNBC interview, Paul Meeks highlights Nvidia's position in the market as a leader in cost-effectiveness, suggesting that its offerings provide substantial value compared to competitors. Watch the interview for full details.
Transcription:
Sara Eisen
Sticking with the tech sell off, could this be an opportunity for investors to buy the dip? Joining us now, harvest portfolio management CIO Paul Meeks. Paul, great to see you with us. Have you with us. I'm going to read your words exactly and be clear that this is what you are saying. I think that this correction will bring one hell of a buying opportunity in select tech stocks. Are we there yet?
Paul Meeks
I don't think so. I think we have to at least get through the earnings reporting season. So give me another week or two. I'm also looking at some specific tells this week. One has just taken place. That is the sell side conference presentation by Micron. And then the other one comes with super Micro's quarterly announcement after tomorrow night's close. I think we're getting close, but every time I hold off, and I've been holding off buying my favorite names since well before this earnings cycle, it just seems to be a better day to hold off and get them lower. I'm looking now not necessarily for fundamentals because I'm convinced and the fundamentals of these companies long term, well, when it.
Carl Quintanilla
Comes to, when it comes to fundamentals, though, Paul, if I could just jump in. I mean, we just heard Deirdre refer to the multiples. They've come down in some cases, you know, quite a few turns. Is that not encouraging to you? Is that not a reason to perhaps consider from the fundamental perspective getting in now?
Paul Meeks
Oh, fundamentally, I really like these names, and I concur with the valuation argument. Some of these stocks are looking really attractive, and I think these stocks should be viewed not just on absolute PE ratios, but pe ratios relative to their growth rates. And in that regard, Nvidia is about as cheap as it gets, and I really believe that. But these days I've been spending much more time on technical analysis than fundamental analysis. I just need to see these stocks stabilize for a couple of sessions at some sort of trough level, and the valuations should continue to be good and then also the volume to dry up. And so I don't like necessarily being a technical analyst, but I think that's going to be the greatest insight as to when you get back in these.
Sara Eisen
Names on that report from the information, Paul, that Nvidia's Blackwell chip could be delayed by up to a few months or so. You know, if we are to believe that Nvidia is feeling some pressure from that, is that sort of misguided in that? That's a Blackwell chip sale deferred and not denied in theory, if you are a believer in this AI trade.
Paul Meeks
That's absolutely right. We all know from sitting through this earnings receipt season and seeing the capex plans not just for 24, but for 25 and 26 by the hyperscalers, that they're going to buy every chip they can get. Now, Nvidia will sell every black. Well, it can sell maybe 90 days late and maybe AMD takes a little bit of share, but these guys are all booked out. And if I thought that Nvidia, this delay was going to lead to market share loss, I'd be worried, but I'm not worried about that at all.