Tech analyst who predicted Nvidia would overtake Apple has her eye on these stocks next

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"We believe Nvidia can surpass Apple by capitalizing on the artificial intelligence economy, which will add?an estimated $15 trillion?to GDP.”

That was Beth?Kindig,?lead?tech?analyst?at?the?I/O?Fund, making a prescient call on the AI chipmaker in August 2021 . Fast forward and investor fave Nvidia NVDA, +1.09% boasts a market cap of $2.23 trillion, versus Apple’s AAPL, +1.47% $2.72 trillion.

The I/O Fund, an actively managed tech portfolio that offers stock research and trade alerts, takes credit for a list of notable past predictions . Kindig made another bullish call on Nvidia in early 2023 when it finished up 238%.

In our call of the day, Kindig offers some fresh tech thoughts via a chat with Jordi Visser, CIO and chairman of Weiss Multi-Strategy Advisers via Real Vision . Among those, she sees Nvidia hitting a minimum valuation of $10 trillion by 2030, mostly due to AI software.

Much like what was seen for gaming and mobile, an AI boom and bust will come “and maybe even at a higher rate,” leaving just a few winners. But Kindig sees the dominance and monetizing of AI by Nvidia, Alphabet GOOGL, +1.16% , Meta META, +1.87% and Microsoft MSFT, +0.91% lasting a bit longer.

Kindig says Nvidia’s revenue growth is “not broad enough to protect…tech as a sector,” and they’ve been taking precautions, such as trimming positions in server maker Super Micro SMCI, -1.59% , because “risk reward isn’t there right now for us.” Read more on Super Micro’s woes .

What other sectors and semiconductors will benefit from AI? Kindig says investors should “get comfortable” with semis as they are 50% of the AI market. Semis will be the “the AI software players,” Kindig said.

Cybersecurity is another big area she likes as it’s getting more expensive to protect companies from attacks. As for cloud stocks, she thinks 50% of those companies will be gone in 10 years.

I/O doesn’t own Broadcom AVGO, +3.51% , which supplies semiconductor and infrastructure software solutions, “because custom silicon is going to be desirable for big tech,” she said. And she says watch AMD AMD, -0.93% , which is “going to answer to Nvidia this year.”

“Nvidia’s had no competitor. You could probably go round and round on a good debate on how strong of a design company AMD is. It’s completely underestimated. This company is very strong on design where Intel not so much,” said Kindig.

Investors should also keep an eye on so-called Edge AI — AI models installed straight to devices that will collect and process data locally — as upgrades for smartphones, laptops and devices are coming.

A final word on Nvidia, she notes its valuation currently is hovering around October 2022 low — “eerily low,” saying the company is a “buy on dips” — while “Microsoft is sitting at like Mount Everest valuations.”

“We’re waiting for a breather and we’ll probably continue to layer into Nvidia at that time,” she says.

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