Looking for tech stocks? CIO designates 3 companies to purchase | Wilnesh News
Tech stocks may have been volatile over the past few weeks, but one chief investment officer remains bullish. Jason Ware of Albion Financial Group said that was thanks in part to capital spending by big tech companies like Amazon, Microsoft, Nvidia and Alphabet’s Google, which “provided some growth support as the economy started to slow.” He bought three stocks: Nvidia, Oracle and Broadcom. Nvidia, the artificial intelligence darling, continues to make headlines, with the stock up 141% year to date despite falling around 9.7% over the past three months. The company’s shares rose on Wednesday after Chief Executive Jensen Huang commented on the company’s innovation plans and the future of artificial intelligence. The company sold off after reporting quarterly results on Aug. 28. “We did swing the bat and buy some Nvidia stock…and then about a week ago we got another opportunity and we added another,” Weir told CNBC’s “Street Signs Asia” on Sept. 12. This position. The chief investment officer believes that Nvidia’s stock is “reasonably valued” based on its two- to three-year outlook. The stock currently trades at about 30 times forward earnings, which he said is “sustainable over the next few years.” Weill said Nvidia stock could see a “margin plateau” over the next three to four years, adding that investors “want to make sure the company’s valuation is right.” “We’ve been doing it and we’re very happy with the price we’re getting,” he added. According to FactSet data, 59 of the 63 analysts covering the stock have a buy or overweight rating, while only 4 analysts have a hold rating. Analysts’ average price target is $149.49, representing a potential upside of 25.5%. Broadcom Chip maker Broadcom is another popular stock Weill likes. “We’ve been including it in our dividend strategy for years since 2020 because of its strong yield,” he said. Weill said he bought the stock “on the dip” when it fell below $140 More stocks. This happened on August 7 and again on September 6, according to FactSet. The stock’s “probably not a great yield right now,” but he still likes its dividend growth, which has grown more than 20% over the past two decades. He said he liked that Broadcom was well-positioned in the artificial intelligence boom, adding that it was the “second-best player in the chip space.” Its fiscal third-quarter results exceeded Wall Street expectations, with adjusted earnings per share of $1.24, better than the $1.20 expected, while revenue of $13.07 billion was higher than the $12.97 billion expected. Weill said he sees prospects for the stock with earnings growth of more than 20% and a price-to-earnings ratio of 22 times. Broadcom’s shares fell 7% in after-hours trading after the results were announced, but are still up nearly 47.5% so far this year. Of the 46 analysts covering the stock, 40 have buy or overweight ratings, while the remaining six have hold ratings, according to FactSet data. The stock has an average price target of $191.94, representing an upside potential of 16.6%. Oracle Corporation Ware sees potential in database software maker Oracle. Calling it a “dinosaur,” CIOs think it’s a good choice even though it doesn’t belong to the so-called “Big Seven,” which includes Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. “The reality is, as they transition from relational databases (and) legacy databases to the cloud, it’s a fantastic growth story,” he said. Weill pointed out that although it is too late to enter the cloud field, it currently accounts for about 20% of Oracle’s business. Its forward price-to-earnings ratio of 22 times makes it a cheap stock, he said. It “is growing, accelerating, and we think artificial intelligence is a nice little enabler on their infrastructure cloud. So it’s still a name that we like, we’re quite overweight, we like the company,” Weir added. The company raised its revenue forecast for fiscal 2026 to at least $66 billion, higher than the $64.5 billion expected by LSEG analysts. After the news was announced, Oracle’s stock price rose about 6% in after-hours trading last Thursday, and has risen nearly 53.1% so far this year. FactSet data shows that 19 of 33 analysts covering the stock have buy or overweight ratings. The $171.69 average price target gives it an upside potential of 6.4%. —CNBC’s Kif Leswing and Jordan Novet contributed to this report.
