Talking Tesla, Nvidia and new year end price targets
Summary
TLDRIn a recent interview, Keith Fitzgerald, principal of Fitzgerald Group, discusses the Federal Reserve's potential market impact and maintains a bullish stance, raising his annual price target to 5751. He believes that tech giants like Nvidia, Tesla, and Apple will lead the market rally, while companies like Nike and Walgreens may lag behind. Fitzgerald emphasizes the importance of managing investments by taking profits and reallocating them to sectors like dividend stocks, defense, and undervalued healthcare. He also expresses a strong disagreement with the notion that AI's economic impact will be minimal, arguing that AI is a revolutionary technology with significant returns on investment.
Takeaways
- đ Keith Fitzgerald, a principal at Fitzgerald Group, believes that despite the Federal Reserve's hawkish stance, the market rally will continue to rise, with tech names like Nvidia, Tesla, and Apple leading the way.
- đŻ Fitzgerald has revised his annual price target to 5751, indicating a bullish outlook on the market's performance.
- đŒ He suggests that companies like Nike and Walgreens may be left behind during this earnings season, which is expected to reveal significant insights into the market's direction.
- đĄ Fitzgerald compares the current market situation to historical periods of significant growth, such as the 1950s and 1990s, drawing parallels with the current innovation and labor challenges.
- đïž He uses the analogy of a beach party to describe the current market sentiment, implying that while things are going well, there is still a long way to go before potential downturns.
- đ€ Fitzgerald advises against a 'buy and hope' strategy, instead advocating for 'buy and manage', emphasizing the importance of taking profits and managing investments actively.
- đ He specifically mentions the potential of dividend stocks, defense stocks, and undervalued healthcare stocks as areas to consider for investment diversification.
- đ Fitzgerald was early in recognizing Nvidia's potential and continues to be bullish on the company, expecting significant growth in its value in the coming years.
- đ€ He strongly disagrees with the view that AI will not significantly impact the economy, arguing that AI is the most transformative technology in human history with substantial returns on investment.
- đ Fitzgerald also expresses interest in small and mid-cap companies, particularly those in emerging fields like quantum computing and biosciences, but advises careful selection due to the inherent risks.
- đ Lastly, Fitzgerald remains bullish on Tesla, predicting that the stock could double or triple in value in the next few years, highlighting its potential beyond just the automotive industry.
Q & A
What is Keith Fitzgerald's revised annual price target for the market?
-Keith Fitzgerald has revised his annual price target to 5751.
Which companies does Keith Fitzgerald believe will lead the market rally?
-Keith Fitzgerald believes that companies like Nvidia, Tesla, Apple, and other great tech names will lead the market rally.
According to Keith Fitzgerald, which companies might get left behind during this earning season?
-Fitzgerald suggests that companies like Nike and Walgreens might get left behind during this earning season.
What historical periods does Keith Fitzgerald compare the current market situation to?
-Fitzgerald compares the current market situation to the 1950s and the 1990s, periods of significant growth with lots of innovation and labor challenges.
What investment strategy does Keith Fitzgerald recommend in the current market scenario?
-Fitzgerald recommends a 'buy and manage' strategy, suggesting taking profits and managing investments actively rather than just buying and hoping.
What does Keith Fitzgerald suggest doing with gains in the current market?
-He suggests taking some profits, like harvesting fruit from a ripe orchard, and considering reinvestment in great dividend stocks, defense stocks, and undervalued healthcare.
What is Keith Fitzgerald's view on the impact of AI on the economy?
-Fitzgerald believes that AI is the greatest technology in recorded human history and that every dollar spent on it now is returning significant value to the balance sheet.
What is Keith Fitzgerald's opinion on the future of Nvidia's stock price?
-Fitzgerald is bullish on Nvidia, expecting its stock price to continue rising and potentially reach $9, $10, $12, or even $15 in a few years.
How does Keith Fitzgerald view the potential of small and mid-cap companies in the current market?
-He struggles with the potential of small and mid-caps, noting that many good solid companies are being purchased before going public, and emphasizes the importance of quality and picking bets carefully.
What are some examples of small-cap companies that Keith Fitzgerald finds interesting?
-Fitzgerald finds companies like IonQ in quantum computing and Caribou Sciences in biosciences and gene editing to be interesting small-cap investments.
What is Keith Fitzgerald's forecast for Tesla's stock price in the next few years?
-Fitzgerald is bullish on Tesla, expecting the stock to double or triple, or even more, in the next few years, emphasizing its potential beyond just cars and its role in power, robotics, and AI.
Outlines
đ Market Rally and Tech Growth Outlook
Keith Fitzgerald, a principal at Fitzgerald Group, shares his optimism for the market rally, predicting it will continue to rise despite the Federal Reserve's hawkish stance. He has revised his annual price target to 5751, highlighting tech giants like Nvidia, Tesla, and Apple as market leaders. Fitzgerald also discusses the importance of managing investments by taking profits and reinvesting in sectors like healthcare and defense, which he sees as undervalued. He emphasizes the historical parallels to the 1950s and 1990s, periods of significant growth and innovation, suggesting that the current market is in its early stages of a similar trajectory.
Mindmap
Keywords
đĄFED
đĄRally
đĄAnnual Price Target
đĄNvidia
đĄTesla
đĄEarnings Season
đĄPath of Least Resistance
đĄDividend Stocks
đĄDefense Stocks
đĄUndervalued Healthcare
đĄAI (Artificial Intelligence)
đĄSmall and Midcaps
Highlights
Guest Keith Fitzgerald believes the Federal Reserve could be a caveat to the market but maintains a positive outlook on the rally.
Keith Fitzgerald has revised his annual price target to 5751, indicating continued market growth.
Fitzgerald suggests companies like Nvidia, Tesla, and Apple will lead the market, while others like Nike and Walgreens may lag behind.
He emphasizes that the current market is structurally similar to significant growth periods in the 1950s and 1990s.
Fitzgerald compares the market situation to a beach party, suggesting there's still a long way to go before reaching a peak.
He advises on investment strategy, recommending not to 'buy and hope' but to 'buy and manage'.
Fitzgerald recommends taking profits and considering reinvestment in dividend stocks, defense stocks, and undervalued healthcare.
He disagrees with the view that AI's economic impact will be minimal, arguing that AI is the greatest technology in human history.
Fitzgerald forecasts significant returns on AI investments, predicting a multiplier effect on balance sheets.
He expresses a differing viewpoint on the impact of AI compared to an MIT expert, Deona Semago.
Fitzgerald is bullish on small and mid-cap companies, especially those in emerging sectors like quantum computing and biosciences.
He mentions specific small-cap companies like IonQ and Caribou Sciences as potential high-value investments.
Fitzgerald remains optimistic about Tesla's stock, predicting it could double or triple in value in the coming years.
He encourages investors to look beyond Tesla's automotive aspect and consider its potential in power and robotics.
Fitzgerald views Tesla as a potentially undervalued AI play and expresses confidence in Elon Musk's leadership.
The conversation concludes with Fitzgerald's continued enthusiasm for the market and his investment philosophy.
Transcripts
our next guest says the FED could be a
caveat to the market but still thinks
the rally will go higher and has just
revised his annual price Target to 5751
let's bring in Keith Fitzgerald a
Fitzgerald group principal Keith it's
good to have you so even with sort of
hawkish sounding Powell there even with
and here's the thing is the Market's
going to continue to narrow up it's
going to be companies like Nvidia and
Tesla and apple and many of the Great
Tech names we talk about all the time
that lead the way companies like Nike
and Walgreens are going to get left
behind this earning season is going to
be very telling but still path of least
resistance is higher Kelly and why do
you think that is why I think what that
the path is higher or that they're going
to get left behind well
both well there's still a lot of money
that needs to go to work and
structurally we are very identical to
two prior periods of significant growth
in history you know where we had lots of
innovation we had labor challenges the
1950s and the 1990s and so if we think
about this like a beach party
everybody's just rolling onto the sand
they're starting to break out all the
great food people are smiling frisbees
are starting to go around but there's a
long way to go before everybody gets
sunburned so it's a nice good place to
be it doesn't feel like that but history
is often that way yeah but Keith what do
you do with your gains at this point say
you were right um and uh you expected
you were listening to Keith fitgerald
and you expected the SNP to reach these
levels do you just stay completely
invested even in the S&P say you're uh
invested that way from here or do you
redistribute those gains in some way
that uh takes away some risk of the
narrow Market rally that's a really good
question and my preference is the latter
you know buy and hope is not an
investment strategy but buy and manage
very much is so taking profits just like
you harvest fruit from a tree and a ripe
you know ripe Orchard that's what you
want to be doing now so there's lots of
great dividend stocks there's great
defense stocks there's lots of
undervalued health care out there so you
don't want to get off a winning horse
mid rce but my opinion is definitely you
want to be thinking about how do I take
some of that money off the table what do
I do with it and where do I go next so
Keith let's talk about Nvidia which you
were early and right on and said there's
still more room to go and and continue
to say that we I don't know if you saw
last hour we spoke with deona semago
over at MIT derona semago over at MIT um
who said he thinks the impact of this in
terms of the economic impact is actually
going to be much smaller than people
think um if that's right yeah yeah I
mean you know in measurable terms that
it can replace some tasks but really not
you know the bulk of what comprises
human economic
activity I think that's a very
interesting observation I disagree with
it and very respectfully so this is a
lot like saying that talking movie
pictures wouldn't replace silent
pictures AI is not just a technology
it's the greatest technology in recorded
human history and I think that every
dollar you're spending on it now is
returning 5 six s to the balance sheet
so we're going to be looking at $9 1012
$15 a few years from now so the question
is not so much is it coming or is it
inevitable the question is what does
that look like like so I would
respectfully disagree I'd push back on
that pretty significantly and I think
that that's a very interesting but not a
Viewpoint I agree with what are you
betting happens to the small and midcaps
here that's an interesting question we
struggle with that because I think that
quality matters the problem we have in
today's market is that many of the small
caps that are really good solid
companies are getting purchased before
they ever go public so the question is
you know who's out and what ion Q for
example is a Quantum Computing uh on the
uptake I think it's batting around right
now in the low low dollar ranges so
that's interesting when Conor Computing
comes in that's an example of a small
cap that might make it or Caribou
Sciences biosciences that's another one
gene editing is potentially four or five
years from now very very valuable full
disclosure I own both of them but I
think you've got to pick your bets very
carefully because the big caps are what
the security the balance sheets the
strength needed and Keith I should
mention as well you're still bullish on
Tesla thinking this could be a $300
stock next year yes I am I think this
stock is going to double or triple maybe
even more in the next few years and
again we're early Innings anybody who's
thinking about this just in terms of
cars is very smart but I would encourage
them to broaden their Horizon
significantly this is about power this
is about robotics I think it perhaps is
the best undervalued AI play on the
planet right now and love him or hate
him musk knows what he's doing all right
Keith thank you we appreciate it always
fun to check in Keith Fitz thank you now
let's going to check on the bond market
Rick Santelli tracking the action Rick
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