Nvidia is still inexpensive even as it rose to a new record on Wednesday because of the rapid pace of its earnings growth, according to EMG Capital’s Eric Jackson. And the hedge fund manger believes there isn’t an artificial intelligence bubble in sight. “They’ve been cheap, because people haven’t trusted that these massive quarters are going to continue,” the firm’s founder and president told CNBC’s ” Money Movers .” Last month, Nvidia topped Wall Street expectations for the fiscal first quarter and issued strong guidance for the current quarter. Earnings per share in the latest fiscal year jumped nearly 600%. And Nvidia’s forward price-earnings ratio based on estimates for the next 12 months is at 39, according to FactSet. While that may seem relatively high compared to other companies, Jackson notes it is below its 5-year average forward P-E of 40. Nvidia has surged around 145% so far this year with its market value approaching $3 trillion. Bank of America said Wednesday the company’s head start in artificial intelligence chipmaking could boost its shares by another 30% . “What we’ve seen, especially in the last couple of weeks when you look to HPE’s results or Dell’s results, Nvidia is really just sucking up the profits and the gross margins in this space to the tune of something like 75%,” he said. “Others are happy to come along for the ride, hoping to sell other services afterwards, but they are getting the dominant shares, so don’t mess with success with Nvidia.” Dell as AI play? While Nvidia is a leader for Jackson, there’s also another stock in the AI space that’s on his radar. “I still like Dell even after their pullback from earnings a week ago or so,” he said, adding that AI server storage is going to make Dell a major beneficiary of the technology. Last week, Dell shares tumbled 18% after the company reported a decline in margins and missed expectations with its AI server backlog. But Jackson believes its incremental AI server revenues of $1.7 billion from its previous quarter has positioned the company to show better margins as the year goes on. “You need to do something with all the data that you’re running on these machines,” he continued. “You gotta store it somewhere.”