MAI Capital Management’s Chris Grisanti explains why he is ‘happy to hold’ Alphabet
Speakers
Chris Grisanti
— Chief Market Strategist, MAI Capital Management
Summary
Chris Grisanti, chief market strategist at MAI Capital Management, discusses his holdings in Alphabet, Nvidia, and Meta. He remains happy to hold Alphabet after its large run, is buying Nvidia as the unavoidable AI toll road, and prefers Nvidia over Meta despite liking Meta's valuation. He also says he would ride the Magnificent Seven into 2026.
- Alphabet is Grisanti's largest position and he remains happy to hold despite not expecting another 60% gain.
- He sees Alphabet as ascendant after Apple adopted Gemini for Siri, and views its valuation as attractive relative to Meta.
- He is buying Nvidia because he believes AI spending will continue and most AI workloads must go through Nvidia.
- He says AI spending is funded by highly capitalized tech companies including Microsoft, Amazon, and Google.
- He likes Meta's cheap valuation and calls it a winner, but prefers Nvidia as the better AI king-of-the-mountain play.
- He concludes he would ride the Magnificent Seven into 2026.
Ideas
Happy to hold Alphabet despite big run
Grisanti is an Alphabet shareholder and says it is his largest single position after rising more than 60% over the past year. He does not expect another 60% move, but he is happy to hold because the prior AI/search-disruption threat has reversed: Apple is using Gemini for the new Siri chatbot and Google is ascendant. He also argues Google looks expensive on rearview metrics but is almost as cheap as Meta and growing at roughly three times the rate.
Buying Nvidia as unavoidable AI toll road
He says he is buying Nvidia even though, as a value investor, he is uncomfortable with Magnificent Seven multiples and consensus appreciation. The math is compelling because investors cannot reach the AI toll road without Nvidia; even if Google has proprietary chips, most of the market still relies on Nvidia. If the AI spending train keeps moving, funded by the world's best-capitalized technology companies such as Microsoft, Amazon, and Google, Nvidia is the train to own.
Would ride Magnificent Seven into 2026
After discussing Alphabet and Nvidia, he says he would ride the Magnificent Seven into 2026, citing the group's role in funding the AI spending train and the relative valuation and growth appeal of leaders like Google versus Meta.
Meta cheap AI winner, Nvidia preferred
He agrees it is a nice time to buy Meta, calling it a clear winner with a cheap valuation and noting he owns some Meta. However, he prefers Nvidia because Nvidia is the king of the mountain in AI and is unavoidable for AI exposure.
