Fast Money: Dump Caterpillar, Double Down NVIDIA

forward basis. Some would argue it's almost a value stock at that point. Is there a reason why you can't be opportunistic about buying this trade if there are valuation at least tailwinds for some of these stocks? >> I mean, you using the word value investment in Nvidia is like music to my ears. So, I I appreciate that. Dom, I'll take the other side that Jenny just brought in with respect to Barclays because I'm not sure that they're painting a broad brush. I think they're looking at this and saying as things get a little bit more sane in certain trades, there are opportunities. And I'll pivot specifically to our Nvidia position here. The stock was 230 what, 6 weeks ago, 4 weeks ago. Here we're back down in the 200 range. And I do look at this as a company that's in a maturation process. Maybe Allah Apple over its history because lots of people made a lot of money over this name. You know, you could put 5 cents into Nvidia and then it's worth 5 million two years later. We're looking at it now as a true investment longer term. So they have an 80 million, excuse me, an 80 billion share buyback. They're paying a dividend, which is close to a half a percent yield. Not enough yet for your dividend strategy, but enough for ours from a dividend growth perspective. And then if you look at what they're doing under the surface, this is almost at a hundred billion dollars a quarter in revenue. So I think that Jenny's point about which stocks are going to be specifically winners and losers is spot on. I'll just take Barkclay's back a little bit and say I don't know that they were painting a broadbrush or at least I was thinking or talking in my book as I was reading it. So I think there are great opportunities here and if you step in when there's problem when things are under pressure that's where you make money. >> Steve I want to go back to a point that you made about whether or not you made this money in a memory name like Micron there might be more to be had but you want to protect what you've got and you take that you raise the cash and you deploy it somewhere else at some point. One other place I'm curious that you raised cash in has been an ancillary play on that AI revolution on the industrial side and that's Caterpillar specifically and I want to talk about the trade that you did because you've sold that Caterpillar stake and by the way just from a valuation standpoint I just want to bring it up for relativity sake >> different industries right Micron and and Nvidia versus Caterpillar but Caterpillar right now trades at around 35 times forward expectations versus Nvidia's 21 times forward expectations How much do investors really have to toggle around with just where to take profits from and where to deploy them to? >> Uh, look, that's insanity. And I said it while I own the stock. I wait till I sold most of it, by the way. And, uh, you know, I I guess maybe even close to a month ago, you know, a number of weeks ago, and this is tag end. And to me, 35 times forward, 12 is insanity for a highly cyclical capital inensive company. It's it's just lunacy. it should be in the mid- teens and that's because cat should get a premium um a premium to its historical. Now what we don't know uh is how long this is going to be but what we do the cycle we do know it's a cyclical company always has been always will be there are different cycles that drive it and that's same thing with Micron so Micron I don't think it's going away I just think the market's lost track of what the how this stock trades historically and why it trades that way which is a commodity company and they add capacity cats adding capacity and eventually dries up. Now, what we don't know is how much pre-ordering has happened, and this applies to CAT and Micro and all the others. What we do know is Meta came out and said, "Hey, we're going to get into the cloud business." Now, is that because they see a tremendous opportunity in cloud or is it because they bought too much and now they want to put what they bought too much? So, we're going to come back same cycle with all these semis where there was over orderering because nobody get their orders filled. So it's like what I allocated all the IPOs when I was at Lehman and you know funds would put in an order for 10% in the book knowing they're only getting 2% right of of what they what they wanted. So it's the same type of phenomenon. It's the same phenomenon in every single industry. If supply is tight you order more than you need and if you get it great you're surprised if you don't. Cats specifically ju it's just basic. It's I'm not saying the end is over for the stock. I do expect you to report a good quarter, but for me