Talking Tesla, Nvidia and new year end price targets

Summary

In 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

• 📈 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.
• 🎯 Fitzgerald has revised his annual price target to 5751, indicating a bullish outlook on the market's performance.
• 💼 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.
• 💡 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.
• 🏖️ 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.
• 🤔 Fitzgerald advises against a 'buy and hope' strategy, instead advocating for 'buy and manage', emphasizing the importance of taking profits and managing investments actively.
• 🍎 He specifically mentions the potential of dividend stocks, defense stocks, and undervalued healthcare stocks as areas to consider for investment diversification.
• 🚀 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.
• 🤖 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.
• 📊 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.
• 🚗 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

00:00

📈 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.

Keywords

💡FED

The Federal Reserve, often abbreviated as 'FED', is the central banking system of the United States. It plays a crucial role in the economy by influencing monetary policy, interest rates, and thus the overall market conditions. In the script, the guest suggests that the FED could be a caveat to the market, implying that its policies or decisions might pose a risk or challenge to the ongoing market rally.

💡Rally

A 'rally' in financial markets refers to a period of sustained increase in prices of securities, typically stocks. The guest in the video believes that despite potential challenges, the market rally will continue to rise, indicating an optimistic view on the market's performance.

💡Annual Price Target

This term refers to a projected value or level that an analyst expects a stock or market index to reach within a year. The guest has revised his annual price target to 5751, suggesting a specific expectation for the market's performance over the next year.

💡Nvidia

Nvidia is a leading technology company known for its graphics processing units (GPUs) and is a key player in the tech industry. The guest mentions Nvidia as one of the companies that will lead the market, indicating a belief in its strong performance and potential for growth.

💡Tesla

Tesla is an electric vehicle and clean energy company that has significantly impacted the automotive and energy sectors. The guest expresses a bullish view on Tesla, predicting that its stock price could double or triple in the coming years, highlighting its potential for significant growth.

💡Earnings Season

Earnings season is a period during which publicly traded companies release their quarterly financial results. It is a critical time for investors as it can influence stock prices and market sentiment. The script suggests that the upcoming earnings season will be 'very telling', indicating that it will provide important insights into the financial health of companies.

💡Path of Least Resistance

In the context of markets, the 'path of least resistance' refers to the direction in which an asset is most likely to move with the least amount of effort or opposition. The guest suggests that the path of least resistance for the market is higher, indicating a belief that upward movement is more likely than downward.

💡Dividend Stocks

Dividend stocks are shares of a company that pay out a portion of their earnings to shareholders in the form of dividends. The guest recommends considering dividend stocks as part of a strategy to manage investments, suggesting they can provide income and stability.

💡Defense Stocks

Defense stocks refer to shares of companies that are involved in the defense industry, often providing products or services to military organizations. The guest mentions defense stocks as an area of potential investment, possibly due to their stability and growth prospects.

💡Undervalued Healthcare

Undervalued healthcare refers to healthcare stocks that are believed to be trading at a price lower than their intrinsic value, offering potential for higher returns. The guest suggests that there are undervalued opportunities in healthcare, indicating a belief in the sector's potential for growth and value.

💡AI (Artificial Intelligence)

AI is a branch of computer science that aims to create machines capable of intelligent behavior. The guest discusses AI as the greatest technology in recorded human history, emphasizing its transformative potential and the significant returns it can bring to investors.

💡Small and Midcaps

Small and midcap stocks refer to companies with a smaller market capitalization compared to large-cap stocks. They can offer higher growth potential but also come with higher risk. The guest discusses the challenges of investing in small and midcap companies, noting that quality matters and that some good companies are being acquired before going public.

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