Buy the weakness in stocks like Tesla and Palantir as bull market has more room to run, investor says
Investors can buy the dip on some key tech stocks after this week’s market losses, according to Eddie Ghabour, Key Advisors Wealth Management managing partner. Stocks declined this week on worries that the AI-powered bull market could get hit by an economic slowdown and historically elevated valuations. Data released Friday showed that consumer sentiment has nearly approached its lowest level ever amid worries about the record-setting U.S. government shutdown. Losses in major tech stocks led the Nasdaq Composite to notch its worst week since April. Ghabour, however, sees this week as a buying opportunity for Tesla , Nvidia and Palantir . Tesla is one of the investor’s top picks, particularly after CEO Elon Musk on Thursday got his historic $1 trillion pay package approved by the majority of Tesla shareholders. The investor believes Tesla stock could break through its all-time high, set in Dec. 2024, and hit $500 per share by the end of this year. That’s more than 16% above the stock’s Friday close of $429.52 per share. Shares lost 5.9% this week. The stock, a laggard among its tech peers, is up 6.4% this year. TSLA 1Y mountain Tesla stock over the past year. “[Musk’s] got a trillion reasons to try to win the AI race, and I think that’s the big difference here when you look at Tesla,” Ghabour said Friday on CNBC’s “Power Lunch.” “… The bulls or bears will debate on whether it’s a car company or an AI tech trade. And obviously, we believe it’s an AI trade,” he said. “As long as we continue to grow in this AI bubble, and you think it’s going to expand into 2026 — like we believe — we’re not gonna bet against Elon.” Investors believe the newly approved pay plan could help turn Tesla into a robotics powerhouse as the company endeavors to gain market share in other areas beyond electric vehicles, which has seen ramping competition. The pay package consists of 12 tranches of shares to be granted to Musk if Tesla hits certain milestones over the next decade, with the first tranche set to be paid out if Tesla reaches a market cap of $2 trillion. Other goals tied to the new plan include Tesla reaching 20 million vehicle deliveries, hitting 10 million active full self-driving subscriptions and delivering 1 million Optimus humanoid robots. “This incentive-based concept is welcomed by shareholders. So I look at this as a very bullish development for the name, and as long as it’s a bull market, we’ll buying dips,” Ghabour said. Ghabour said he is also buying more Nvidia and Palantir on the weakness, as he holds a six-month view of the names. The stocks are up 40% and 135% this year, respectively. “Nvidia is the most important name in AI as well as in the Nasdaq 100 due to their weighting,” he said. “So if you think the market’s going to go up over the next few months like we do, you want to own the names that are going to carry the most weight. … We think these two are going to have continued massive upside throughout this AI boom.” To be sure, Ghabour said investors should remain nimble when it comes to investing in growth names in the current market landscape. “You’ll want to sell them fast when we do go into a bear market ’cause they will get hit the hardest,” he said. “But right now, we’re going to continue to ride because we don’t think we’ve seen the last leg of this bull market yet.”
