Key insights
- Gibbens Capital is bullish on Palantir due to its AI capabilities and long-term growth potential. They also like Nvidia, citing its reduced multiple and the strength of the semiconductor sector. Finally, they recommend buying JPMorgan, anticipating economic growth and increased capital markets activity.
Gibbens Capital president and chief investment officer Mark Gibbens chats with Yahoo Finance's Josh Lipton about three stock picks he's keeping an eye on: Palantir (PLTR), Nvidia (NVDA), and JPMorgan (JPM).
In the great AI trade and trend, it looks like you like Palantir. How come?
You know, I think it's uh the story of the baby getting thrown out with the bath water. So, uh it's a very high quality software uh company that's working in the AI space. It's obviously got the both the enterprise, um, and the government business.
Um, but when you look at the long-term trajectory and how it interacts with the LLMs, um versus, you know, some of the other uh enterprise, you know, kind of software names when you think of, you know, like a Salesforce. Uh, we think Palantir has a great uh runway here and um, we think it's time to jump in.
What about Nvidia, which hasn't done a whole lot really since last summer here, Mark.
Yeah, it it hasn't. So it really has gone, you know, uh, you know, very little, you know, almost nowhere. So, um, but we we really like it.
So, you know, the multiple on it, as you may have heard, it's gone down from around 30 to around 20 right now. So, yeah, we we we really like the space and we really like the semis, so we think it's a good place to be.
Yeah, to your point, I mean, really the face of the great AI trade is is trading uh 21 times forward earnings.
Uh, finally, Mark, uh let's look at the financials, JPM. It's down nearly 10% this year. You say that's a buy, that's an opportunity.
Uh, time to snap it up. So, we really like the banks as well. So when we look at the economy, again, we're expecting that, you know, at minimum two and a half percent growth. So we're pretty bullish on the overall economy.
So banks are cyclical. Uh should participate well just in the growth, but also, you know, when you look at the capital markets activity, you know, we have some big blockbuster IPOs coming, we have lots of M&A activity that's on deck here.
So the capital markets to do uh very well for them. and then also we have the the deregulation. So um all that kind of, you know, uh turns out to a a good mixture for the banks.