Investors can suspend their focus on price to earnings and other multiples as the stock market rises to all-time highs, according to Dan Niles, portfolio manager and founder of Niles Investment Management. “You kind of have to forget about valuations for now,” Niles said on CNBC’s “Squawk on the Street.” “Then we’re going to get to Thanksgiving, and I think things are going to hit a wall. But for right now, I’m really enjoying the ride.” Niles’ comments come as the S & P 500 rallied to a new record on Friday, the latest milestone in the stock market’s dramatic comeback following the April sell-off triggered by President Donald Trump unveiling his tariff policy. Niles said companies should have a good second-quarter earnings season and geopolitics are improving. The Lehman Brothers alum also said he expects the Federal Reserve to cut interest rates despite his personal belief that the central bank does not need to lower the cost of borrowing. Niles said he is standing by his call for Cisco as a top pick into the second half of this year. The networking equipment maker has sold at multiples below other artificial intelligence plays, and the stock could benefit from a push to invest in the networking side of AI, the money manager said. Cisco shares have climbed more than 16% in 2025, on track for their third straight winning year. The stock hit a 52-week high in Friday’s session, its highest since the end of the dot-com bubble in 2000. The majority of analysts have a buy rating on Cisco, according to LSEG. The consensus 12-month price target suggests the stock might rise another 3%. Niles also highlighted Nvidia and Microsoft , saying the two are his favorite members of the “Magnificent Seven.” Niles said Nvidia is coming off a major write-down and that Microsoft is turning a corner with its Azure business. Both stocks hit all-time highs in Friday’s session. Nvidia shares have risen more than 17% so far in 2025 after more than doubling in 2024 and more than tripling in 2023. The consensus rating among Wall Street analysts remains a buy, with the average price target suggesting more than 12% upside. Shares of Microsoft have jumped about 18%, also placing the stock on track for its third straight winning year. Most analysts also have a buy rating on Microsoft but an average price target implying about 3% upside, according to LSEG. NVDA MSFT YTD mountain Nvidia and Microsoft in 2025 Correction — An earlier version of this story incorrectly identified the name of Niles’ current investment firm.