3 days Ago
Tech stocks may have had a volatile past few weeks , but one chief investment officer is still bullish. Albion Financial Group's Jason Ware says that's thanks in part to the capital expenditure of large tech companies like Amazon , Microsoft , Nvidia and Alphabet 's Google that's "providing a bit of growth support as the economy begins to slow." These are three stocks he's buying: Nvidia, Oracle and Broadcom .
Nvidia This artificial intelligence darling continues to make headlines, with the stock up 141% over the year to date, despite falling around 9.7% in the last three months. Its shares picked up last Wednesday after CEO Jensen Huang's comments on the company's innovation plans and the future of AI.
That followed the sell-off after its quarterly results announcement on Aug. 28 . "We did swing the bat and pick up some Nvidia [shares] .
.. and then we got another opportunity just about a week ago and we added to that position," Ware told CNBC's " Street Signs Asia " on Sept.
12. "We are trying to build what we think is a sensible position for our clients. Over both the medium and long term, we still like Nvidia — the business is doing well [and] there's major drivers in AI," he added.
The chief investment officer believes Nvidia's stock is "reasonably valued," based on its two to three-year outlook. The stock is trading at around 30 times forward price-to-earnings, which he says is "sustainable over the next couple of years." There might be a "margin plateau" in Nvidia's stock in the next three to four years, Ware says, adding that investors "want to make sure you're this right in terms of valuations.
" "We've been doing that, and we've been pretty happy with the price we've been getting," he added. According to FactSet data, of the 63 analysts covering the stock, 59 give it a buy or overweight rating, while just four have a hold rating. Analysts' average price target is $149.
49, giving it 25.5% potential upside. Broadcom Chipmaker Broadcom is another popular stock that Ware likes.
"We've owned this in our dividend strategy for a number of years since 2020 because it pays a decent yield," he said. Ware said he bought more of the stock "on the dip" when its price fell below $140. That happened on Aug.
7 and again on Sept. 6, according to FactSet. The stock may have "less of a good current yield now," but he continues to like it for its dividend growth, which came in at over 20% in the past two decades.
He says he likes that Broadcom is well positioned for the AI boom, adding that it's the "second best player in the chip complex." Its fiscal third-quarter results surpassed Wall Street's expectations with adjusted earnings per share coming in at $1.24, better than the $1.
20 expected, while its revenue was $13.07 billion, higher than the $12.97 billion penciled.
With earnings growth exceeding 20% and a price-to-earnings multiple of 22 times, Ware says, he sees promise in the stock. Broadcom shares fell 7% in extended trading following its results announcement, but remain up close to 47.5% year-to-date.
Of 46 analysts covering the stock, 40 give it a buy or overweight rating, while the remaining six have a hold call, according to FactSet data. The stock's average price target of $191.94 gives it upside potential of 16.
6%. Oracle Corporation Ware sees potential in database software maker, Oracle. Calling it a "dinosaur," the CIO considers it a good play even though it isn't part of the so-called "Magnificent Seven," which includes Alphabet , Amazon , Apple , Meta Platforms , Microsoft , Nvidia and Tesla .
"The reality is that's been a fabulous growth story as they transition from relational databases [and] the legacy databases over to cloud," he said. Though it was late to jump onto the cloud, the segment now accounts for around 20% of Oracle's business, Ware noted. Its forward price-to-earnings of 22 times makes it a cheap stock, he said.
It has "growing, accelerating growth, and we think AI is a nice little kicker on their infrastructure cloud. So it's still a name we like, we're quite overweight, and we like the company," Ware added. The company raised its fiscal 2026 revenue forecast to at least $66 billion, more than the $64.
5 billion LSEG analysts were expecting. Oracle's shares rose about 6% in extended trading last Thursday after the announcement and are up nearly 53.1% year-to-date.
Nineteen of 33 analysts covering the stock give it a buy or overweight rating, according to FactSet data. The average price target of $171.69 gives it upside potential of 6.
4%. — CNBC's Kif Leswing and Jordan Novet contributed to this report..
