2 ‘Strong Buy’ Stocks to Snap Up If You Want to Invest in Elon Musk’s DOGE

As the head of the Department of Government Efficiency (DOGE), Elon Musk is on a mission to reshape the federal budget landscape by slashing waste and inefficiency. His aggressive approach has already resulted in the cutting of thousands of jobs, forcing federal agencies to defend their budgets or face deep cuts. Musk’s audacious goal of trimming between $1 trillion and $2 trillion from the federal budget by 2026 has significant implications not only for government organizations but also for the market at large. As traditional financial principles dictate, where there’s uncertainty, there exists opportunity.

Investors eager to catch the wave of this transformation would do well to consider two stocks closely associated with Musk: Nvidia (NVDA) and Modine Manufacturing (MOD). Both companies are not just participants in their respective industries—they are at the forefront of technological innovation that aligns with Musk’s visions for the future of artificial intelligence (AI) and infrastructure.

Stock #1: Nvidia

Founded in 1993, Nvidia has rapidly evolved from a GPU innovator into a titan of the AI landscape. Currently valued at approximately $2.9 trillion, the company dominates sectors including data centers, gaming, and professional visualization. Musk’s ambitions in AI are directly supported by Nvidia’s technology; crucially, the company’s chips fuel Tesla’s self-driving initiatives while powering Musk’s new venture, xAI’s Colossus supercomputer. With a plan to double its server power to 200,000 Hopper GPUs, Nvidia is set to underpin the burgeoning demand for AI solutions.

Despite recent volatility—highlighted by a significant 17% drop following brisk profits released in late January—Nvidia has shown resilience, now boasting a 61% increase in value over the past year. Trading at a forward earnings ratio of 32.95 times, NVDA’s valuation may seem steep, but for a company leading the AI charge, the premium is warranted.

The company reported a remarkable Q4 fiscal 2025, achieving a staggering $39.3 billion in revenue, representing a 78% year-over-year growth. Notably, data center sales surged by 93%, highlighting Nvidia’s critical role in meeting the escalating demand for AI capabilities. Analysts predict Nvidia’s profit per share will reach $3.98 in fiscal 2026—a 35.8% annual increase—with continued growth expected thereafter. With a consensus rating of “Strong Buy,” 37 out of 43 analysts offer favorable projections, suggesting a potential price target of $177.43, reflecting a 35% upside. At the high end, the target climbs to $220, indicating an astounding potential gain of 67.6%.

Stock #2: Modine Manufacturing

For over a century, Modine Manufacturing has been a cornerstone in the thermal management sector, engineering solutions that cater to a diverse array of industries—from electric vehicles to data centers. Headquartered in Racine, Wisconsin, Modine’s continued innovation in cooling solutions positions it well to benefit from the growing demand for high-efficiency cooling, especially amid a global push towards electrification and advanced AI infrastructure.

The company has strong ties to Tesla, initiating its partnership in 2012 by supplying battery chillers for the Tesla Model S. With Tesla scaling its production and energy storage capabilities, demand for Modine’s specialized thermal management products is poised to accelerate significantly. Currently valued at a market cap of $4.2 billion, Modine has experienced a downturn of 27% this year. However, over a five-year span, its stock has ballooned by an impressive 1,240%—indicative of a company momentarily consolidating its gains rather than facing inherent weakness.

In its recent Q3 earnings report for fiscal 2025, Modine posted revenue of $616.8 million—a 10% increase year-over-year—underpinned by robust performance in data center cooling solutions and HVAC products. The company’s adjusted EPS of $0.92 exceeded expectations by a remarkable 16.5%. Furthermore, with $45 million in free cash flow and a favorable leverage ratio of 0.8x, Modine is well-positioned to achieve another successful year. Projected sales for fiscal 2025 are expected to rise between 6% and 11%, with an anticipated shares growth leading to an adjusted EPS increase of 19.4% by fiscal 2026. Analysts have issued a consensus “Strong Buy” rating, with a robust price target of $152.50, indicating potential upside of around 75.3%.

Conclusion

As Elon Musk continues to exert his influence over government spending while simultaneously pushing the boundaries of technology, investing in stocks like Nvidia and Modine presents a compelling opportunity. These companies not only stand to benefit directly from Musk’s initiatives but also embody the principles of innovation and resilience that are essential in today’s dynamic market environment. By aligning your investment strategy with these “Strong Buy” recommendations, you are not merely speculating on technology; you are intelligently positioning yourself to thrive amidst change.