economy
April 29, 2026
Microsoft and Nvidia finally became cheap enough for this value investor
Chris Grisanti, chief market strategist at MAI Capital Management, said he bought into the megacaps in the first quarter of the year.
TL;DR
- Value investor Chris Grisanti bought Microsoft and Nvidia in Q1 2026 due to their temporary dips and market doubts about AI growth.
- Grisanti, who typically invests in resilient, dividend-paying stocks, found these AI darlings now fit his criteria of being temporarily out of favor and trading below typical multiples.
- Microsoft is trading at 19.6 times next year's earnings, almost two standard deviations below its historical average P/E, suggesting potential upside.
- Nvidia is trading at 18 times next year's earnings, which is near the market multiple and low relative to its own history.
- Grisanti plans to buy any further dips in these stocks but would sell if valuations become excessively rich or the AI capital expenditure thesis breaks.
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