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- Ross Gerber is shifting his focus from Tesla to Nvidia, JPMorgan, and Meta Platforms amid the market dip.
- Nvidia’s valuation and growth potential attract Gerber despite recent stock sell-off concerns.
- Gerber sold bitcoin for gold, citing volatility and uncertainty as key factors in his decision.
Ross Gerber, known as a longtime backer of Tesla, sees no upside in the stock after its latest wipeout.
So, where is he seeing opportunity instead?
In a recent interview with BI, the CEO of Gerber Kawasaki Wealth & Investment Management broke down some of his recent market moves amid the ongoing stock correction.
Gerber, who is a long-term investor, was hunting for value on Monday when the Nasdaq Composite plunged 4% in its worst day since the 2022 bear market.
“I actually bought a little Nvidia yesterday,” Gerber said, referencing the Monday sell-off. He also purchased shares of JPMorgan and Meta Platforms during the decline.
For Nvidia, it’s all about valuation. The AI stock sold off as much as 30% from its January peak amid tariff headwinds and fears of lower-than-expected profit margins.
But Gerber highlighted that the stock is trading way too cheap given its elevated growth rate.
“You could actually buy Nvidia at 20x earnings and their expected earnings are expected to go up 75% this year and they’re buying back stock,” Gerber remarked.
Bank stocks are also cheap, Gerber said, specifically highlighting JPMorgan as a name he’s buying
“Banks will have a pretty good year with less regulation, and banks are cheap,” Gerber said.
JPMorgan is the largest bank in America and currently trades at a forward price-to-earnings ratio of 11.2x, a 45% discount to the S&P 500’s valuation multiple.
Other stocks Gerber had a positive view on included GE Vernova, a renewable energy spin-off from General Electric, TKO Group, which owns UFC and WWE, and Disney.
But perhaps the most surprising trade made by Gerber recently was selling the bulk of his bitcoin and using some of the proceeds to buy gold.
Gerber said that after years of trading bitcoin, he’s learned his lesson about its high volatility and was eager to take profits after the postelection surge.
“For my fund, we raised our allocation to 4% and then we made good money on it, so we were up big. But I’ve learned my lesson over the years trading bitcoin, it’s just like I gotta take my money,” Gerber said.
Regarding gold, Gerber said the uncertainty around the Trump administration should be a tailwind for the risk-off metal.
“People buy gold, other countries will buy gold, Europe will buy gold, and just the idea that when you have volatility, there’s really only one asset that is meant to really offset that,” Gerber said.
“It used to be Treasurys and gold, but Treasurys don’t actually perform that way as much anymore. I would argue there are substantial risks in Treasurys with this government, so the truth is gold is a really good place if things go crazy,” he added.
Gold hit a record high of $3,000 an ounce on Friday. The precious metal is up 13% year-to-date.
