Nvidia shares can double from these levels, according to portfolio manager Dan Niles. “They’re the ones that are actually powering all of these companies in terms of their ability to spend more on AI,” the Niles Investment Management founder told CNBC’s ” Squawk Box ” on Friday, adding that he bought shares in recent weeks. “The stock has obviously come back in a lot,” he added. “We think they’re going to have a beat-and-raise quarter.” The comments from Niles come as the brutal sell-off in technology stocks stretches into August. Nvidia shares dropped nearly 7% on Thursday, building on a 5.3% loss in July. Shares are up 120% this year but have sold off 11% within the last month as investors rotate out of the sector. NVDA YTD mountain Nvidia shares over the past month. Niles believes the AI story for Nvidia has more room to run, noting that shares don’t look so expensive when adjusting for its growth rate. However, investors should brace for volatility during the chipmaker’s climb. “You’re going to see something horrific sell offs, and then some recoveries,” he said, likening Nvidia’s ascent to the rise of Cisco Systems during the 1990s Internet craze. “I think we’ve got several more years to go before this AI buildout is over.”
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