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These 2 Stocks Are About to EXPLODE, Says Tom Lee

Invest with Henry14:34

Transcription

Tom Lee said this is an opportunity of a

lifetime and the market right now has

pulled back and there's an opportunity

that he sees as a buying opportunity for

the rest of 2024 going into 2025 now

look I have a very strong opinion on

this because I do see a lot of

opportunities in the market however I do

see some stocks that are overvalued and

I do believe they will be falling

further in my opinion over the past 10

years what I've seen in this market what

works what doesn't and when the market

corrects like this what you should be

doing to capitalize it's all about capit

izing it's all about human emotions and

right now in this market what I'm seeing

is we do indeed have a buying

opportunity for two stocks I'm going to

cover in this video while there are a

couple other stocks that are overpriced

listen I'm going to show you a quick

clip this clip is going to help you

understand repricing and what to do in a

market pullback because what I'm seeing

right now is a huge opportunity to take

advantage of volatility so watch this

Quick 90c Clip Tom we'll start with you

I take it you think this is a buying

opportunity this uh this is another

buying opportunity in our view 2024 has

proven to be a year where the Market's

been strong and it has eluded many

opportunities for sustained weakness I

know yesterday's pullback was really

painful but to us I think the

fundamental supporting stocks are intact

and I think it's a good opportunity for

investors here a good opportunity for

investors Jee I take it that you

feel is differently putting it too

strong well I don't disagree with Tom on

the fundamental side of it but I think

if you look at where we're at with the

interest rates what's on the horizon

from taxes tariffs and deficits I really

have to be considered of what happened

yesterday it was the second largest move

in the vix we have seen and historically

speaking Kelly Tom is Right a month

after that spike in the vix you see the

S&P 500 higher however I don't think we

can lean on History here due to the fact

that we've seen stretch valuations in

the top 10 names of the S&P 500 we've

also seen just a straight line up if you

look in the last two years back toback

years of above 25% we become conditioned

that the markets is going to continue to

move higher thanks by and large to the

FED dobish in their $7 trillion balance

sheet so I'm looking I know Tom wants to

back up the truck here I have the truck

running but I'm not ready to back it up

yet I want to see this more processed

reset valuations I think that's going to

be the next couple months possibly the

first quarter because we become too

conditioned Kelly to markets repricing

in a day I have to go back to my 30-year

career and understand that we will see

reset valuations more of a quarter or

two not just a day or two all right guys

so let's go over what we just learned in

this clip Tom Lee said this is a buying

opportunity and I agree completely with

Tom Lee guys we have been making money

hand over fist we've been pulling in so

much profits in this market we made over

15% in the last month alone now we see a

little bit of a pullback so you're

thinking to yourself is a game over is

this over for the market are we going to

continue to pull back I want to tell you

no we're going to continue to see a bull

market repricing shortterm little bit of

correction is nothing nothing to worry

about because this is actually healthy

for the market the market can't go up in

a straight line guys it's not like a

complete like like this right it can't

go one day two days 10 days in a row up

what you actually need to happen in the

market is a steps and Ladder pattern

okay so you go up in steps all right and

then boom you take the elevator down

that is normal that's exactly what

happens in the market that's the point

of volatility if it was easy everyone

would be rich that's not how it works so

we want to take advantage of the upward

momentum when it pulls down like you

know 3% like we just saw yesterday we

take advantage by buying high quality

companies and we avoid the companies

that have you know higher risk the

companies that don't have good

valuations the companies that don't have

good technicals this is what you want to

look out for now what I saw in this clip

right specifically is Tom Lee said hey

this is buying opportunity it's business

as usual all right business as usual

we're making money things are going to

continue to go up now Jeff kilberg he's

also a very interesting man he has a lot

of experience and what he said is he

actually disagreed a little bit with Tom

Lee he said that you know we're going to

see some repricing and repricing takes

some time in my personal opinion

repricing can take time but not in this

market the momentum is super clear to me

and one- day pullback is not going to

scare me one day pullback is actually a

fantastic opportunity to jump into the

market in my opinion and I don't really

see this as a longer term repricing as

Jeff kilberg said so in my opinion I'm

telling you the facts AMD is at a 52e

low guys are you kidding me it's at a

52- we low how much lower can it get AMD

is a fantastic buying opportunity as

well as Nvidia these are the top two

stocks that you should be buying right

now if you're not buying them you're

going to be missing out on a ton of

money AMD at a 52e low is going to be a

fantastic buying opportunity for the 130

call option leap for September 2025 I

mentioned this in my last video and I'm

telling you this opportunity in AMD is

going to print money because I'm not

looking at expensive stocks I don't

really like stocks at 52- we highs what

I'm looking at is 52 we lows so that's

where AMD is at right now as well as

Nvidia we're not necessarily at a 52e

low for NVIDIA but Nvidia has pulled

back and at the price level that I'm

seeing it right now anything under 135

is a fantastic buying opportunity for me

in fact I think that Nvidia is easily

going to be a $180 stock in the next 6

to 12 months both AMD and Nvidia are

fantastic AI plays guys we have heard

from Dan IES that we're at a tech party

right we're we're at 10: p.m. and the

party's going to 4:00 a.m. that's what

he's famous for saying right and I am in

full belief that the Tech party is still

here and we have 25% more growth to have

in 2025 now obviously we're at the end

of 2024 so there's a little bit of

volatility people are going on holidays

and you know some folks are selling off

on the market if you sell off on you

know stocks at 52e highs and take profit

I can't blame you that's fine but if

you're selling off and you're panicking

from Nvidia or AMD that's a huge mistake

and based on my research right here AMD

and envid my top two plays however I

will also say tenter still has

opportunities as well and I'm personally

holding my leaps on paler I'm also

holding my leaps on Tesla both of those

stocks are going to continue to do well

so these are my four top plays now look

when it comes to Nvidia I want to point

out something super important because

some people say NV video is going to

pull back further I will tell you what

I'm seeing right now in terms of a floor

okay this is what I'm referring to as a

floor floor is basically a support level

those two things are synonyms floor and

support okay now understanding where

floor is we're at a much lower multiple

for NVIDIA versus other AI peers guys

this is a relative game if you want to

understand how to actually invest

there's actually no absolute numbers

okay on an absolute level yes Nvidia has

you know good PE ratio but it's all

about what is it compared to others in

this market that's what we want to

understand on a deeper level and when I

look at AIP peers versus Nvidia the AIP

peers are more expensive than Nvidia

Nvidia is going for very reasonable

levels and I want you to understand this

through this short clip that I want to

show you from a Morgan Stanley analyst

this Morgan Stanley analyst explains why

Nvidia is a good opportunity right now

so watch this Quick Clip it's only going

to be 90 seconds uh where's the floor

where's uh where's the bottom here is

there is there one and uh what do you

think the fair value of this company

really

is hi good morning um so I think we're

wrestling with a couple of things um we

have this transition to Blackwell and so

your product Hopper which still driving

you majority of revenues is starting to

slow down as you would expect to see and

there's a lot of enthusiasm now for

custom so we can or as6 as we've seen

with broadcom and Marell I think those

things are weighing on the stock I still

think when you think about 2025 and AI

the story is Blackwell the product cycle

that IND India has I think they're going

to have a huge second half of the year

and I think we do have these

transitional issues as we're moving

there but I think the stock is very

attractive at this level uh I'm not

going to say absolute bottom because

it's volatile but you know as very

attractive at this level I think you're

you're trading at a much lower multiple

than some of the AIP peers and I really

believe that they actually gain share

versus custom silicon in 2025 I'm very

excited for this custom silicon Trend

but I still think Nvidia can gain share

relative to that in 2025 and has a very

strong product cycle um you know we

think the stock trades well north of 150

uh as we sort of move into that back

half 150 end of the year meaning if if

if we do the holidays again together

Joseph that uh we're 150 then or 150 6

months out no sorry 12 months out yeah

we're we're uh our forecast our our

price targets are high 150s I think uh

12 months out 15 what kind of multiple

what kind of multiple are you you

putting on that 12 months out relative

and how would you compare that to the to

maybe the whatever you think the best

comps are at this moment yeah I think we

have a mid four number in 2025 we think

north of $ five doll in

2026 I think those numbers are very

conservative and we've seen the stock in

the low3s kind of multiple range when

there's periods of strong growth ahead

of us and I think we have that uh the

peers are now trading kind of more like

high 30s uh when you look at the you

know where the brcs and Marvels are

trading on our estimat so I think that's

that's a very reasonable multiple now

they have high margins and they're again

they have these transitional issues that

you're wrestling with all of that can

continue to weigh on the stock we may

continue to hear some data points about

the the older Products Manufacturing

starting to slow down but but black was

really robust and the demand they have

uh is is very strong yes all right so

what we just saw from this clip is

basically 2025 is trending for an up

Market that was the analyst's opinion um

from Morgan Stanley he says 2025 is

going to be fire we've seen that from

multiple analysts and by the way this is

not rocket science guys the higher the

stock goes the better it performs other

analyst realize that they are stupid for

not being bullish on the stock so I'm

planning to see more and more analysts

come out and say hey I'm also bullish

because it's kind of like a cycle all

right so when a bunch of analysts have a

price Target on Nvidia 80 bucks 75 bucks

and Nvidia is at 1 30 they have to

change their price Target otherwise they

look dumb so they need to go up and as

more analysts go up they start to copy

each other so this is a cycle and I

expect this to continue to happen in

2025 now we also saw the Morgan Stanley

analyst mention that the product cycle

for NVIDIA is a little bit difficult

with Blackwell however they do have a

strong product cycle in general so in

2025 we should see a lot more of that

come to fruition now the Morgan Stanley

analyst did see the stock above 150 I

think that is way too conservative for

me I see the stock at $180 per share and

you know if I'm taking a look at

opportunities in the market that have

the most upside for the level of risk

guys it's not about just money okay

anyone can you know buy a call option

and take a huge risk and maybe get lucky

I'm not trying to maybe get lucky I'm

trying to get rich for sure I'm trying

to put you in the positions that are the

most likely to build your wealth without

you know having any adverse effects

because a lot of people can buy like

really risky and high volatility stocks

sometimes you win sometimes you lose

that's not what I want I want to win and

put the most odds in my favor as

possible I'm trying to be a casino I'm

trying to put the odds in my favor so I

can build wealth for sure and when I do

my one-on-one coaching with my students

I see a lot of success stories

especially right now I have so many

doctors lawyers Engineers Pilots these

guys are making more money in the option

market right now with my plays than

they're making in their full-time job so

this is a no-brainer market to continue

to build wealth and I said this in a

prior video let me tell you one more

time because you need to understand this

if you make a lot of money right now you

are not going to care when there is a

correction because it's like reaping a

harvest if you're going to be a farmer

and you have a lot of fruits and a lot

of veggies all you have to do is pick up

those fruits and veggies freeze some of

them for the winner so when the tough

times come you can weather those tough

times it's as simple as that guys that's

why right now this is a huge opportunity

and I'm building a lot of urgency for

you to take action because I've grown my

portfolio multiple six figures per month

and you can do the same telling you as

you guys know you can always hit the

first link in my description I do have

some more spots in my one-on-one

coaching but let's continue on with the

video because what I want you to

understand is that AMD I said is a

fantastic leap opportunity play what you

want to do is you want to purchase some

leap options on AMD now be smart you

guys need proper risk management you

can't just dump all your money into leap

option and think okay my portfolio is

going to go to the moon no what you have

to do is put 3 to 5% of your money in

AMD or into Nvidia you need to have

proper risk management and it does

depend on one by one basis because if

you have a bigger portfolio then you

should have less of your money and leaps

and if you have a smaller portfolio then

you can afford to take on more risk

because you basically need more risk to

leverage up your portfolio to have

faster growth so I want to conclude this

video by saying that I agree with Tom

Lee and based on my own research what

I'm doing every single day spending

multiple hours on Research putting my

students in the best place to make money

I agree with Tom Lee that this is a

buying opportunity for almost every

stock in the market that has pulled back

for many stocks in this market

especially AMD and Nvidia especially the

AI companies however I would be cautious

right now on Adobe and meta what I'm

seeing right now is there are some risk

on the table when it comes to Adobe I

just don't see a strong support where a

lot of investors are jumping into the

stock I see continued negative momentum

same thing with meta I think there is

some demand same thing with meta I think

that this is a fantastic company but in

the short term I see some weakness in

the stock so I would be careful with

those two stocks I would have you know

Clear Sight on the stocks that I

mentioned in this video and then the

other companies that I've covered I'm

still holding and I still have a lot of

belief in this market I think we're

going to continue to make money hand

over fist I'm going to keep making those

fruits and veggies and I'm going to

continue to freeze them for the winner

because when tough times come we take

advantage we take advantage of

opportunities like this so I want to

encourage you guys to be smart Don't

Panic don't sell and understand that

this is a long-term game where we're

building a ton of wealth and we're going

to continue to build a ton of wealth if

we play it right okay if we adjust to

the market if we understand the market

and most importantly if we dollar cost

average the high high quality companies

that are going for reasonable valuations

if you want to learn how to become a

better investor and you actually want to

scale up your portfolio understand risk

management understand momentum

understand Delta understand all the

things that I cover in this channel make

sure that you're subscribed to this

channel as I'm going to continue to give

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check it out I'll catch you guys in the

next one