NVDA fell 10% while revenue and profit did not, making the drop an opportunity. CUDA lock-in and profitable AI revenue make it top-quality, not speculative. At 13.5x next year's earnings it is very cheap; at 20x it could reach $315 by end of Q1 next year, though AI capex cuts or chip competition could hurt.

This leads us to the second stock, which will be Nvidia. And I know that's not a strange choice, Mark. But when I post videos discussing this particular name after it has declined in attractive ratings, people make money.

In the past few weeks alone, Nvidia shares have fallen 10% from their recent highs. Their revenues did not decrease by 10%. Their profits did not decrease by 10%. In fact, the company continues to carry out its work and achieve growth at a rapid pace. This is when opportunities come closer.

I know some will say, "Well, hasn't this stock already seen tremendous growth?" The answer to that would be yes. But you can't judge a stock or a company based solely on past performance, especially a company like Nvidia that has experienced insanely high growth rates in the past few years and continues to post extremely high numbers .

One of the biggest misconceptions about Nvidia is that it's just a graphics processing unit (GPU) manufacturer. This is no longer an accurate description of the nature of the company's work.

Nvidia has developed a complete artificial intelligence ecosystem and a complete computing platform that includes advanced accelerators, networking technologies, software, systems, and tools for developers.

One of its biggest competitive advantages is its proprietary CUDA software system. This system makes it easier for developers and companies to build their applications using Nvidia technologies.

Once companies have invested huge resources and built their infrastructure around that particular platform, switching to another platform becomes extremely difficult and complicated.

However , I believe that Nvidia will remain a major player even as competition in the AI computing market intensifies . This is one of the biggest reasons why I view Nvidia differently from some of the more speculative AI investments.

Many companies are promising returns from artificial intelligence in the future. As for Nvidia , it is generating significant profits and revenues from artificial intelligence today.

It is not enough to simply promise investors that it may eventually become profitable . The demand for its technology has already translated into significant revenues and profits.

Elon Musk even stated that SpaceX exclusively buys Nvidia chips and will continue to do so.

But here, I must be careful. I don't think Nvidia is immune to the concerns surrounding spending on AI infrastructure. I don't want this to be the only conclusion. Some companies that purchase AI computing equipment invest huge amounts of capital, and investors are increasingly questioning the return on those investments.

If customers start slowing down their spending, it could eventually affect Nvidia products. There is also the issue of competition. As mentioned, dedicated AI chips are capturing an increasing share of certain workloads, and this could impact the economics of the broader accelerator market.

But I will tell you that what is not a cause for concern is the rating of Nvidia. Looking here at Fast Graphs , you can see that Nvidia stock is trading at 13.5 times next year's earnings, which is insanely cheap to me .

Let's say it's worth at least 20 times more. This could push Nvidia's stock up to $315 per share, and I think it could reach that by the end of the first quarter of next year.

Now, I'm not saying that Nvidia has hit rock bottom, but I think Nvidia remains one of the highest quality companies in the AI ecosystem . If the market continues to create opportunities to accumulate stocks with more attractive valuations , it is a company I would want to continue adding to my portfolio.

Because the long-term demand for AI computing may remain high, even if the stock market experiences significant volatility along the way for a number of AI stocks . But again , we're talking about quality.

This is one of the highest quality companies you will find. They have a financial health score of 84, supported by very little debt and strong cash flows.

this does not necessarily mean that these customers will stop buying graphics processing units from Nvidia.

Nvidia provides advanced computing platforms for artificial intelligence, Owning all three does not necessarily mean you are diversified, because all three companies have significant exposure to the same basic investment cycle in AI infrastructure.

If capital expenditures for artificial intelligence continue to grow, these companies will perform well. They will all benefit. But if spending slows down significantly, and that is the key word, the three companies could face some pressure.

Currently, there are three companies that are of particular interest to me: Vertiv, Nvidia , and Broadcom.