Investors looking to diversify their portfolios and reduce exposure to Nvidia may want to consider other steady growth stocks recommended by Trivariate Research’s Adam Parker. As Nvidia’s upcoming earnings results are anticipated to be a crucial data point this earnings season, it is essential for investors to explore alternative options that offer positive alpha and low correlation to Nvidia.
While Nvidia has shown significant growth over the past year, there are concerns about a possible pullback due to changing financial conditions. For investors seeking to hedge their AI-semiconductor bets, Parker suggests looking at large cap growth stocks that have proven to be resilient and have the potential for growth in the future.
One of the recommended options is Berkshire Hathaway, a large cap growth stock with a low correlation to Nvidia. Despite the current market conditions, Berkshire Hathaway has demonstrated the ability to beat the market and has seen a positive return of over 12% this year.
Another promising stock highlighted by Parker is Eli Lilly, a pharmaceutical company that has surged more than 30% this year. With positive outlooks from analysts, including a recent price target hike by Citi, Eli Lilly is expected to continue its growth trajectory.
Charles Schwab is also identified as a large cap growth stock with a low correlation to Nvidia. The financial services company has shown strength in the market, reaching new highs and maintaining a positive trend. With a 5% increase in shares this year, Charles Schwab is a viable option for investors looking to diversify their portfolios.
Additionally, Waste Management and Emerson Electrical are recommended as alternative options to Nvidia. These companies have demonstrated resilience and growth potential, making them suitable choices for investors looking to expand their portfolios beyond the semiconductor sector.
With concerns about Nvidia’s potential for a pullback in the market, investors should consider diversifying their portfolios with alternative growth stocks recommended by industry experts. By exploring options with positive alpha and low correlation to Nvidia, investors can mitigate risk and capitalize on growth opportunities in other sectors. It is essential for investors to carefully evaluate their portfolios and make informed decisions based on market trends and expert recommendations.
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