The hedge fund manager also names his other favorite stock plays on artificial intelligence.
U.K.-based chip design company Arm debuted on the Nasdaq on Thursday, and now it's trading at a premium to even fellow semiconductor firm Nvidia . Nvidia's stock price has already more than tripled this year — far outpacing any other stock in the S & P 500. But Arm's price-to-earnings ratio is now close to 170 times — towering over Nvidia 's, which develops graphics processing units for advanced, artificial intelligence processes.
Nvidia is also down around more than 7% so far in September and Niles describes that as a "very healthy consolidation." "The nice thing is — for investors who felt like they missed it before, you can now buy it at a 31 times for PE which is down from about 50 or so before because the numbers went up so much after they reported," he said.
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