James Demmert, chief investment officer at wealth management firm Main Street Research, isn't giving up on AI names he's bullish on. He likes Constellation Energy (STZ). This energy company is one of the independent power producers that provides nuclear power. "It's a utility grid expansion company," said Demmert. "It's helping the world meet its increasing energy needs." And it's only selling at 22 times earnings, which is a reasonable valuation given its growth prospects, adds Demmert.
Another AI play Demmert likes is SAP (SAP), the German-based CRM (customer relationship management) software company. "Over the past year, SAP is harnessing the power of AI through their rapid investments in chips," said Demmert. It also trades at 22 times earnings. But SAP has another thing going for it: "It's a great way to play a foreign stock that we think will be spared by Trump tariffs," he said.
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