The well-known hedge fund investor David Einhorn advises investors to look for more attractive stocks away from the highly overvalued tech giants like NVIDIA, AMD, and Meta. Instead, he recommends the stock of the computer manufacturer HP, which he believes has so far flown under the radar for AI investors.

Einhorn, founder of Greenlight Capital, told 'Bloomberg TV' that HP could experience 'high double-digit growth' in the coming years. The HP stock price is 'very reasonably' valued at about 10 times earnings, according to Einhorn. Although HP has already risen by 21.20 percent since the beginning of the year, the investor still sees significant catch-up potential compared to the AI giants, which have increased by 184 and 60 percent, respectively, since January.

Greenlight Capital itself holds a stake in HP and is thus betting on cheaper names that could benefit from AI development in the future. "PCs need to be replaced regularly since many were bought after COVID in 2020 and 2021. If 'AI PCs' turn out to be a reality, HP could experience a better cycle than usual," explained Einhorn. This strategic focus on innovative products could strengthen HP in the long term.

In contrast, stocks of large tech companies are less attractive due to their high valuations. Einhorn criticized the current market sentiment and described investments in Nvidia, AMD, and Meta as "expensive" since these companies are currently trading at about 23 times their earnings. "The market as a whole is really quite expensive, and I find it hard to chase these high valuations," said Einhorn.

Despite Einhorn's positive assessment, HP stock has an average price target of $35.92 according to TipRanks analysts, slightly above the current trading value. Nevertheless, Einhorn's recommendations sparked a positive market reaction: HP stock rose by 1.73 percent to $36.45 on Thursday at the NYSE and gained another 1.12 percent to $36.88 on Friday.