Gus Scacco, CEO and CIO of Hudson Valley Investment Advisors, recently spoke with Quartz for our "Smart Investing" video series. Watch the interview above and read the edited transcript below for a concise overview of their conversation. ANDY MILLS (AM): Nvidia had impressive earnings last week. What should we expect next? GUS SCACCO (GS): Nvidia and cloud providers are key for building infrastructure. The next step is implementation, which many companies are already doing behind the scenes. For instance, energy companies in transaction-oriented industries are utilizing AI for better decision-making based on big data. AM: Are you recommending buying Nvidia right now? GS: Yes, we like Nvidia. It's a building block company that leads the way into the next phase. AM: With everyone buying chips, the success of the next phase is uncertain. What are your thoughts? GS: Looking at various companies, like Schlumberger in the oil services sector, AI has enabled them to drill more efficiently and extract more oil.

American Express is also using AI to detect fraudulent transactions, reducing cases of stolen cards. These are just a few examples of how AI is impacting multiple industries, and we're only at the beginning stages. AM: You mentioned American Express. Why do you consider it a good investment? GS: There's a divide in the market between older Americans with significant assets and younger individuals starting out. American Express caters to both demographics, capturing the higher-end older demographic while attracting younger customers. Given this, we believe it's a favorable investment for the next few years. AM: How does American Express differ from MasterCard and Visa? GS: MasterCard and Visa primarily function as transaction networks, while American Express offers cardholders benefits like frequent flyer miles and points. They aim to bring higher-end individuals to specific stores and segment them based on their demographics and usage.