Investing.com - Nvidia (NASDAQ:NVDA) and Super Micro Computer (NASDAQ:SMCI) have been among the main beneficiaries from the boom in AI interest, but they should retain a heavy weighting in individual portfolios for some time to come, according to legendary investor Louis Navellier.
At 11:05 ET (15:05 GMT), Nvidia stock traded around 2% lower and Super Micro down over 10%, as investors took profits after stellar gains, with the former up 75% year to date and the latter over 200% higher.
“I know some people like to take profits, and that's fine, but for the bulk of our portfolios, we're going to be holding these stocks for a long, long time, said Navellier, chairman and founder of Navellier & Associates, which manages approximately $1.0 billion in assets, in a note.
Essentially, the speed of Nvidia’s AI chips is expected to double every year, and by the end of the decade, Nvidia’s AI processing speed is expected to be 11,800% higher than today.
Additionally, Nvidia launched a cloud service for researchers to test out their quantum-computing software. The Nvidia Quantum (NASDAQ:QMCO) QMCO Cloud will first comprise a data center stacked with AI chips and systems that together simulate a quantum computer.
Super Micro Computer is also gearing up to dominate the new liquid cooled AI chips in data centers, which are getting faster all the time.
“The AI race is real and rewarding,” he added.