Keith Fitz-Gerald, Chief Investment Officer at the Fitz-Gerald Group, appeared on ‘Varney & Co.’ to discuss the significant potential of artificial intelligence (AI) in the market, spotlighting Tesla (TSLA)and Palantir (PLTR) as key players. He predicts AI will grow into a $1 trillion industry by 2030, highlighting these companies as prime investment opportunities due to their integral roles in this burgeoning sector.
Fitz-Gerald emphasized Palantir’s unique position in the market, describing it as a company that makes data “intelligent” by allowing different datasets to interact, which is crucial for sectors like military, government, and civilian industries. He noted that Palantir’s ability to integrate and make use of vast amounts of data, where legacy systems fail, positions it uniquely without direct competition. This capability, according to Fitz-Gerald, could see Palantir’s share price reach $100 by the end of the year, given its role in modernizing supply chains and manufacturing processes akin to rejuvenating the pre-World War II American industrial base.
On the topic of Tesla, Fitz-Gerald argued strongly for its classification as an AI stock. He explained that Tesla’s business extends far beyond just vehicles, encompassing robotics, energy production, trading, and finance. The integration of all these aspects into a cohesive, real-time decision-making database is what sets Tesla apart. Fitz-Gerald highlighted that the interconnectedness of Tesla’s operations, driven by AI, could potentially undervalue the company’s future worth, suggesting that by 2040, Tesla could be valued at $20 trillion.
When asked about potential market disruptions due to Federal Reserve decisions on interest rates, Fitz-Gerald expressed a calm outlook. He acknowledged the possibility of market volatility if the Fed deviates from expected actions but maintained that the long-term investment potential in companies like Tesla and Palantir would remain strong. His perspective was that any short-term market movements would be overshadowed by broader economic reforms and the incoming administration’s policies, suggesting that these are opportune times for investment.
Fitz-Gerald’s discussion underscored a bullish stance on AI-driven stocks, advocating for investment in Tesla and Palantir as part of a strategy to capitalize on the AI revolution. His insights provide a compelling narrative for investors looking to tap into the future of technology and industry through these companies.
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