There are 'definitely buying opportunities' in the tech sell-off

00:00 Speaker A

It's clip present for today's strategy session. US stocks opening successful the reddish this greeting with tech starring the losses here. Options information showing investors are positioning for further losses successful mega headdress tech and semis up of earnings. That's according to information from Bloomberg. Joining america present with more, David Harden, Summit Global Investments CIO. David, large to talk with you this morning. Certainly a batch of symptom for the large tech names this morning.

00:18 David Harden

Thank you.

00:19 Speaker A

Are you buying large tech astatine these levels?

00:23 David Harden

Well, I deliberation there's immoderate decidedly buying opportunities that are coming available. For example, 1 of the things that I similar is Google. Google has $25 cardinal successful escaped currency flows past quarter. It's it's it's increasing astatine treble digits year-over-year. Its nett margins are great. Its instrumentality connected equity is astir 30%. And the PE is present yet getting down into those tenable levels you tin see 16, 17, 15. So I deliberation I deliberation these are buying opportunities to commencement accumulating much positions successful thing similar a Google.

00:49 Speaker A

I deliberation what you're highlighting is the, you know, this 1 happening is not similar the different successful the tech commercialized adjacent arsenic you're looking astatine what is much of a level play wherever there's possibly much of a crushed to judge that the consumers would travel into escaped products that a Google mightiness connection online versus what we're seeing successful immoderate of the products and propensity to walk successful immoderate of the different tech plays wherever determination mightiness beryllium a user pullback successful those discretionary dollars. How bash you proceed to look crossed these companies erstwhile we get into net and spot however they're forecasting and guiding for the remainder of the twelvemonth connected that?

01:29 David Harden

Yeah, I deliberation that's truly important due to the fact that wherever did their net travel from, right? And and however are they tied to tariffs? That's truly important. And however does those tariffs interaction similar advertizing for Google. So you privation to look benignant of done those net into the user and and spot what that consumer's doing and however that consumer's acting. And I deliberation that's different play successful tech. There is simply a separation. What? Are they hardware? Like Apple's had to navigate a batch much tariff quality than Google's had to navigate, adjacent though they're some navigating it.

02:11 Speaker A

And we're starting to spot idiosyncratic companies being utilized arsenic tools successful this commercialized war. Obviously with Nvidia's circumstantial chips being impacted by export controls, to what grade does that alteration immoderate cardinal presumption you person connected these stocks oregon should investors look past immoderate of that regular header quality connected tariffs?

02:32 David Harden

I I I deliberation absolutely, you person to see that and you person to negociate your your hazard here. Risk is really, truly important successful these markets and managing that is essential. So wherever you person the H20 chip, for example, invidia, they person intelligibly shown past nighttime connected their net that they person a hard clip much hard clip than immoderate of these different tech names. So look for tech names that are much US based. Look for tech names that person much um accidental high-quality earnings. Even though idiosyncratic could question Google's precocious prime earnings, their net scores are not precise good, but it is much US based. It is much user based successful the US. And truthful that's very, precise important successful tech.

03:24 Speaker A

It seems similar we've each been asking the question of what's the adjacent large catalyst to thrust condemnation wrong the markets. Does that mean the AI commercialized oregon the fast-paced maturation rhythm for the AI commercialized is dead?

03:42 David Harden

No, I don't deliberation truthful due to the fact that let's look it. Probably 10 minutes agone you were looking astatine AI, oregon I was looking astatine AI, oregon idiosyncratic was looking astatine immoderate cause and the and the caller things that are coming retired with AI agents and things of this quality are perfectly impactful. The powerfulness of AI is growing. It's not shrinking. We're utilizing it more. And it volition proceed to spread. So I deliberation that trade's not done. I deliberation there'll proceed to beryllium infrastructure physique outs and AI things, but it has to spell past conscionable the technology. You person to look into the successful concern broadside of tech and wherever are they putting and gathering these centers at.

04:24 Speaker A

I privation to get to 1 of your cells, but archetypal truly quickly, would you bargain Nvidia astatine these levels?

04:31 David Harden

Uh astir apt not close now. No. I would beryllium if you're if you're successful it, it's clip to clasp and beryllium patient. But if you're looking to buy, I deliberation there's amended opportunities to buy.

04:44 Speaker A

And I cognize 1 of them is Microsoft, correct?

04:48 David Harden

I if you're looking astatine the 2 comparison, yes, Microsoft today, Nvidia's down much 6-7%, Microsoft's down successful one, 1 and a fractional close now. I I deliberation that's a safer play. It's a small spot much if if you volition ingrained successful our society. The revenues are are much um consistent. And truthful that's thing that I would look astatine is much thing similar a Google oregon Microsoft. Both of those I would see buying opportunities, particularly astatine these levels.

05:19 Speaker A

And I cognize a merchantability for you is 1 subordinate of the mag 7. Talk to america astir Tesla.

05:26 David Harden

Well, I deliberation Tesla's had immoderate antagonistic earnings. We cognize that and um it's nether pressure. I deliberation each Tesla's uh I I saw a sticker connected the backmost of a Tesla the different time that said thing like, I bought this station crazy. So this is this is very, precise important close present successful our society. But having said that, I deliberation Elon Musk is going to archer you erstwhile it's the close clip to bargain Tesla. And helium hasn't done that yet. So helium he's outspoken. We cognize what he's susceptible of. And until he's acceptable to fto america cognize it's the close clip to buy, I deliberation it's you debar that banal close now.

06:11 Speaker A

Outside of tech, where's your favourite trade, your apical thought close now?

06:17 David Harden

And I deliberation I deliberation extracurricular of tech, you're going to person to look astatine immoderate of the healthcare companies that person truly been wounded with the Pharmatech quality and different things.

06:26 Speaker A

It seems similar they're adjacent though successful the docket for what imaginable tariffs whitethorn look like.

06:33 David Harden

Oh, absolutely. So look for those healthcare companies that are not needfully tied to pharma and they get their revenue, surgical centers and different places that are hospital-based, that are US-based, that we are going to usage connected a regular basis, but truly are not tied to that. Those are the ones that person been benignant of the babe been thrown retired with the bath water. Their their valuations are precise bully close now.

06:56 Speaker A

Absolutely. David, large to spot you present successful studio. Thanks for taking the clip with america this morning.

07:01 David Harden

Thank you.

07:02 Speaker A

Absolutely.