Although Nvidia is trading at all-time highs, Goldman Sachs' Brook Dane said the stock doesn't look 'extended.'
Despite a recent surge, Nvidia still seems like a good buy at its current valuation, according to Brook Dane, co-head of public tech investing at Goldman Sachs Asset Management. Renewed hype around artificial intelligence has driven shares of Nvidia to all-time heights.
The stock has surged 38% this year, but there's more growth ahead as the chipmaker looks poised to seize a big chunk of future spending on AI chips, Dane said. NVDA YTD mountain NVDA YTD chart Nvidia is capturing about 70 cents of every dollar being invested in the space, Dane said, adding that capital expenditure growth is likely to exceed more than 30% in the next year. "We still really like Nvidia right here, right now," he said on CNBC's "Money Movers" Tuesday morning. "That doesn't seem like a bubble. It doesn't seem like it's extended." Besides Nvidia, on the infrastructure AI side, Dane also listed semiconductor manufacturer TSMC as another top company building out the underlying infrastructure to run AI models. On the data and security side of AI, Dane highlighted top stocks such as Snowflake , Zscaler and Varonis Systems . "There's a bunch of companies that are benefiting from this enterprise effort to clean up data, to have data in the proper format so that the models can learn from them and then secure that data and govern it," he remarked. Finally, on the AI application side, Dane listed Samsara , which provides fleet management and telematics software, as well as HubSpot , which has partnered with OpenAI on the ChatGPT maker's agentic model builder. "HubSpot has this great advantage ... they are the tech provider for many small businesses out there in the U.S. and globally, and so those companies are going to look to HubSpot to help them, guide them, through this confusing period of time around AI," he said. As an honorable mention, Dane said Oracle is a company that could catch up to become a "credible hyperscaler player." "If there's one company that I could identify in the global markets that is profit-motivated and profit maximizing, Oracle would probably be at the top of that list," he said. "I'm not sure I'd bet against that team." Oracle shares came under pressure on Tuesday after a report in The Information raised questions about the profitablity of the company's Nvidia cloud business. Shares were recently down more than 2%, but year-to-date gains hover around 70%. M&A is coming back in a big way in banking. A top analyst believes these are the next takeouts
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