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Nvidia may have enjoyed a red-hot run on the back of the artificial intelligence craze, but many other tech stocks have also benefited. CNBC Pro speaks to fund managers to find out the best alternatives to Nvidia that investors can consider. ASML will also continue to benefit "because without ASML there's no TSMC, without TSMC there's no Nvidia," Cvetanovski said. Ray Wang, principal analyst and founder of Constellation Research, also named TSMC, saying that it "always wins." Super Micro Computer Meeks, who is co-chief investment officer at Harvest Portfolio Management, says Super Micro Computer is his favorite alternative AI stock to play right now.
Persons: Paul Meeks, Taiwan's TSMC, TSMC, Cvetanovski, ASML, Ray Wang, Vertiv, Meeks, astronomically, Wang, Meta —, Sam Altman's Organizations: Nvidia, Veteran, CNBC Pro, Tech, CNBC, Semiconductors, Sydney, Pella Funds Management, Generations Fund, Devices, Constellation Research, AMD, Portfolio Management, Microsoft, Big Tech, Cisco, Meta, Google Locations: Pella, United States
Top hedge fund manager David Neuhauser says the world is in a "boomer renaissance" and investors should be betting big on certain sectors that play the theme. "They are the one demographic which owns the most assets (homes, stocks, bonds, etc) with low fixed rate mortgages," Neuhauser said. He told CNBC Pro, "I think the world is in this boomer renaissance now and there are some stocks that are seeing great moves." He added that the stocks "are not mega tech which shows you other areas tied to the wealth [effect] are helping broadening out gains." Below are the stocks he named and the buy ratings and average upside given by analysts covering them, according to FactSet.
Persons: David Neuhauser, Neuhauser, CNBC's Organizations: Livermore Partners, Big Pharma, CNBC
Bitcoin prices have rebounded since 2023, recovering from steep declines in the couple of years before. On Tuesday, bitcoin prices reached a two-year high of over $56,000. Ark Invest's chief futurist, Brett Winton, believes that a "responsible allocation to innovation generally is really, really critical." On average, Ark Invest's research shows that the "optimal" allocation to maximize risk-adjusted returns — on a five-year time horizon — would be 4.8% on average since 2015. The breakdown of Ark Innovation ETF's tech investments is as follows: cryptocurrencies make up 6.9% of it, and digital wallets 8.8%, among other tech themes.
Persons: Ark, Brett Winton, CNBC's, Winton, , bitcoin's Organizations: Invest, Innovation, Ark Invest Locations: bitcoin, U.S, Europe
That's Super Micro Computer , a Nasdaq-listed company which makes AI systems and graphics processing unit servers. Navellier, who has held shares of Super Micro Computer for over two years, told CNBC's " Street Signs Asia " that "Super Micro is hotter than Nvidia. There are only two companies that dominate in that area, according to him: Nvidia and Super Micro Computer. Wall Street analysts have also recently been giving Super Micro Computer their votes of confidence. Super Micro Computer received a 71% buy rating from analysts covering the stock, according to FactSet data.
Persons: there's, Louis Navellier, That's, CNBC's, Navellier, Rosenblatt, , Samantha Subin, Hakyung Kim Organizations: Nvidia, Navellier, Associates, Nasdaq, Super, Computer, Micro, Wall Street, Bank of America
The bank increased its price target for Nvidia to $820 from $575 in a Feb. 22 note. TD Cowen said in a Feb. 21 note that the company is likely to maintain strong data center growth in the coming years. It raised its price target for Nvidia from $800 to $925. Luria only has a neutral rating for Nvidia, giving it a $410 price target — implying a 47% downside. Bottomline: According to FactSet, analysts covering Nvidia gave it a 93% buy rating, with an average price target of $850.97, implying upside of 8.4%.
Persons: Jeff Pu, CNBC's, TD Cowen, BofA, Gil Luria, D.A, Davidson, Luria, — CNBC's Michael Bloom Organizations: Nvidia, Citi, Haitong, Apple, NVIDIA, Microsoft, Google, AMD, Intel Locations: BofA
Investors have been bullish on Japan stocks since last year, repeatedly driving them to record highs. Goldman Sachs has named "Seven Samurai" stocks in Japan, which it says could be an equivalent of the United States' "Magnificent Seven." The "Magnificent Seven" comprises Apple , Amazon , Alphabet , Meta , Microsoft , Nvidia and Tesla , which were behind much of the gains that drove the S & P 500 up a whopping 24% or so in 2023. In a Feb. 18 report, Goldman answered clients' requests for the Japanese equivalent of the "Magnificent Seven." With that criteria, Goldman has come up with a list of seven stocks, and they are: Screen Holdings, Advantest, Disco, Tokyo Electron, Toyota Motor, Subaru and Mitsubishi.
Persons: Goldman Sachs, Goldman, they've, CNBC's Ying Shan Lee Organizations: Nikkei, Apple, Microsoft, Nvidia, Tesla, Screen Holdings, Tokyo Electron, Toyota Motor, Subaru, Mitsubishi, Tokyo Stock Exchange Locations: Japan, United States, Tokyo
Treasury yields shot up last year, and investors flocked to allocating to cash which have yielded around 5% or even more. Morgan Stanley Investment Management's Jim Caron believes the 10-year Treasury yield is very likely to hover between 5% and 5.5%. Caron, who is chief investment officer at its Portfolio Solutions Group, explained that historically, 10-year Treasury yields are "usually a good match" for nominal gross domestic product. How rising yields affect stocks But are rising yields bad for stocks, as commonly thought? "If yields are rising because the economy is running hot, and data and labor markets are stronger, the rising yields need not negatively affect stocks."
Persons: Morgan Stanley, Jim Caron, Caron, CNBC's Organizations: Treasury, U.S . Federal, Morgan, Morgan Stanley Investment, Solutions Locations: U.S
Dividend stocks came under the spotlight after Meta unexpectedly announced a dividend for the first time. BofA has also been bullish on dividend stocks lately, saying investors may flock back to such stocks for income if yields fall this year, in turn driving up this segment of stocks. Wall Street and other pros share their tips on how to pick good dividend stocks and what names will generate sustainable income. In fact, using that strategy mitigates the risk of relying only on dividend income if higher rates affect dividend distributions, according to Stutland. "This combination provides a buffer against future interest rate hikes and offers the possibility of capital appreciation alongside dividend income."
Persons: Meta, BofA, Brian Stutland, Stutland, Goldman, Stocks, It's, — CNBC's Michael Bloom Organizations: CNBC Pro, Morningstar, Walmart, Target, Depot, Verizon, Treasury
Many U.S. companies have caught the attention of investors amid the artificial intelligence boom, but there are "underappreciated beneficiaries" in Asia-Pacific, according to Morgan Stanley. Beneficiaries could be both AI adopters and enablers — or those that are a mix of both, according to Morgan Stanley. The greatest share of AI beneficiaries in Asia and emerging markets were found in IT and communications, it said. At the opposite end of the spectrum, sectors Morgan Stanley said had "unknown" AI impact included real estate, materials and energy. Here are some names in Morgan Stanley's screens of AI beneficiaries — enablers, adopters and those that are both — that it says have the "most potential for outperformance over the next 12 months."
Persons: Morgan Stanley, Financials, Morgan Stanley's, Organizations: U.S Locations: Asia, Japan, States, Pacific, United States, Morgan
Overall, the MSCI Asia-Pacific index gained 11.8% for 2023, with the MSCI China index losing around 11%. Those interested in stock-picking rather than passive investing can look to Morgan Stanley's list of Asian stocks it calls "alpha" opportunities for February. India's Tata Consultancy , an IT services and consulting company, which was upgraded by Morgan Stanley to overweight in January, was named as another top idea. Morgan Stanley believes "resilient revenue, strong [earnings before interest and taxes] margins, and positive management commentary will likely sustain valuation premium if execution improves." These are some stocks from the full list of Morgan Stanley's top overweight-rated stocks for February.
Persons: Morgan Stanley's, Morgan Stanley, MediaTek, — CNBC's Michael Bloom Organizations: Investors, Nikkei, BSE, Alpha, Tata Consultancy Locations: Asia, China, India, Japan,
The enthusiasm for Japan's stocks was reflected on Tuesday when its benchmark index Nikkei 225 climbed to a 34-year high. Will its bull run continue though, and how should investors play this Asian market? Here’s what Wall Street and other pros say, and how to invest — including the stocks to buy. Jeremy Schwartz, global chief investment officer at WisdomTree, told CNBC’s “Squawk Box Asia” on Friday that Japanese stocks are a “catalyst-rich” asset class. How – and what – to invest Global investors may find it more accessible to invest in Japan markets via exchange-traded funds.
Persons: Morgan Stanley, Jesper Koll, Monex, Jeremy Schwartz, CNBC’s, , buybacks, ” Schwartz, Eastspring, Oliver Lee, Morgan Stanley’s, Morningstar, Kao, industrials, CNBC's Ganesh Rao Organizations: Nikkei, Eastspring Investments, , Tokyo Stock Exchange, Ivailo Locations: Japan, China, Tokyo
But in recent months, many have called for investors to return to bonds as prices are expected to recover soon. Falling yields may prompt investors to wonder which corners of the fixed income market still offer higher yields of up to 6%. He prefers developed market bonds — especially the U.S. — to emerging market bonds, of longer durations exceeding seven years. Emerging market debt can also offer high yield because of the very high real rates in many such economies, Olu-Pitan says, with Latin America debt offering "easily" above 7%. In investment-grade bonds, investors can get above 6% in U.S. financials, she added.
Persons: Brandon Huang, Huang, financials, Remi Olu, Fannie Mae, Freddie Mac, — CNBC's Michael Bloom Organizations: Treasury, LGT Private Banking Asia, CNBC Pro, Agency MBS, U.S ., MBS Locations: U.S, Australia
Tech stocks already had a good run, and investors may be wondering if they still have further to go. The iShares Global Tech ETF, which comprises tech stocks around the world, for instance, had more than 50% returns in 2023, beating the S & P 500's 24%. Citi, which has an overweight rating on information technology within the growth cyclicals segment, is optimistic on the sector in certain markets. Overall, the bank says that it sees more gains for global stocks, giving the MSCI AC World 5% potential upside by end of the year. Investors looking for more upside in tech can consider some tech stocks in Citi's list of top "high-conviction" picks from markets across the United States, Europe, Asia-Pacific and Latin America.
Persons: It's, capex, Michael Bloom Organizations: Tech, iShares Global Tech ETF, Citi, Arista Networks, Arista Locations: China, United States, Europe, Asia, Pacific, America
But Jason Hsu, chairman and chief investment officer of Rayliant Global Advisors, believes that one stock will come out ahead. Hsu believes that as the EV market consolidates, BYD is "for sure going to emerge a winner." One potential curveball for the Chinese EV market is a U.S. decision to raise tariffs, which is reportedly under discussion . But Hsu believes that the markets have already priced in the possibility that those tariff hikes will be imposed. For global investors who want to buy BYD, its shares are listed on the Hong Kong exchange.
Persons: Tesla, Jason Hsu, CNBC's, Hsu, BYD, CNBC's Tanvir Gill, Evelyn Cheng Organizations: Rayliant Global Advisors, Toyota, Hong, BYD, China Clean Technology, China Growth Locations: That's Hong Kong, BYD, China, U.S, Europe, Hong Kong
Artificial intelligence took the investing world by storm in 2023, and was behind much of Big Tech's gains for the S & P 500. The S & P 500 jumped a whopping 24% or so last year, with much of the increase coming from the "Magnificent Seven." The health-care sector is one example it cited, with AI set to be used across multiple areas such as biopharma, medical devices and services. Over the long term, it will be integral to drug discovery and clinical trial design processes, Goldman said. Here are some names in its basket of long-term AI beneficiaries whose earnings per share Goldman said might get a boost from a rise in sales and margins.
Persons: Goldman Sachs, Goldman, ChatGPT, , haven't, CNBC's Michael Bloom Locations: Big
Citi's target price for Mineral Resources: 71 Australian dollars ($46.8), implying nearly 20% upside. Citi's target price for Stockland: AU$5.10, or around 12% potential upside. Citi's target price for Intuitive Surgical: $428, or around 11.5% potential upside. Prosus Citi says Amsterdam-listed investment group Prosus is one of the European stocks most exposed to China and is set to be a "beneficiary of improving sentiment" to China. Citi's target price for Prosus: 42.50 euros ($46.2), implying 52.5% upside.
Persons: Stockland, Prosus, — CNBC's Michael Bloom Organizations: Citi, Mineral Resources Citi, Mineral Resources, Stockland, Prosus Citi Locations: United States, Europe, Asia, Australia, Amsterdam, China
Family offices have boomed in the last few years, thanks in part to the growing number of wealthy individuals. Family offices typically cater to investors with $100 million or more in net worth. Themes for the coming years What type of assets are family offices looking to buy in the next few years? Other themes that family offices are bullish on include health care and longevity, the energy transition and generative artificial intelligence, said Citi's Hofmann. Alternative assets are also becoming more popular with family offices, such as private equity, private debt and infrastructure, according to the providers.
Persons: There's, Hannes Hofmann, Citi's, That's, Robin Harris, Harris, Citi's Hofmann, Ocorian's Harris Organizations: Oxfam, Economist Intelligence, KPMG, UBS, CNBC, CNBC Pro, Citi, Tech, Equity, U.S . Federal Reserve Locations: United States, Asia, India, Europe, America, U.S, Ocorian, Japan, Middle East, Africa, Pacific, North America,
One stock frequently showed up among analysts' top calls this month: South Korean chipmaker SK Hynix . In December, HSBC raised the price target for the stock from 150,000 Korean ($112) won to 180,000 Korean won ($134). "We also expect positive impact from ongoing AI demand on expanding On-device AI adoption. For global investors who wish to buy SK Hynix shares, its shares are listed on the Korea Stock Exchange and its depository receipts are listed on the Luxembourg Stock Exchanges. Investors can also buy into SK Hynix via the ETF route.
Persons: Trent Masters, CNBC's Michael Bloom Organizations: Korean chipmaker SK Hynix, SK Hynix, Nvidia, SK Hynix's, UBS, HSBC, Korean, Trent, Alphinity Investment Management, CNBC, Samsung, SK, Korea Stock Exchange, Luxembourg Stock Exchanges, Franklin FTSE, Franklin FTSE South Korea ETF, Korea ETF Locations: Franklin FTSE South Korea, Korea
Prefer BYD to Tesla Jones prefers Tesla's Chinese EV rival BYD , which he says is his top EV pick. "I haven't seen anything that would suggest to me that they don't have sales momentum, business momentum, new model release momentum, and indeed, now export momentum," Jones said. Two other EV alternatives Another EV company that Jones likes is Volvo Trucks, a unit under Swedish automaker Volvo . "The reason we like [electric] trucks is that it's the area where Western manufacturers are still pretty strong," he said. Volvo has a "very good" truck business, he said, adding: "In particular, they're making a good transition in terms of electric trucks.
Persons: Tesla, Kingsley Jones, Jevons, , Jones, Tesla Jones, BYD, they're Organizations: EV, CNBC, BYD, Volvo Trucks, Volvo, Nio Locations: U.S, United States, BYD, China, Swedish
But this week, China embarked on monetary easing as it pledged to reduce the amount of liquidity that its banks are required to hold as reserves. Earlier this week, Bloomberg News, citing sources, reported that China is considering a $278 billion package to rescue its stock markets. Andrew Lapping, chief investment officer at Ranmore Fund Management , says the sharp decline in China markets is an "opportunity." "So the stock market is certainly putting much higher equity risk premium ... there are also concerns about policy direction, policy clarity ... Renewable energy: China Longyuan Power Group, China Resources Power.
Persons: Brendan Ahern, CNBC's, Andrew, Winnie Wu, Guy Spier, CNBC's Tanvir Gill, , Wu, what's, Ahern, Amundi, It's, Morgan Stanley, Michael Bloom, Evelyn Cheng Organizations: Bloomberg, Investors, Ranmore Fund Management, BofA Securities, CCP, JPMorgan, EV, UBS, Baidu, China Communications, China Construction Bank, Ping An Insurance, China Longyuan Power Group, China Resources Power Locations: China, United States, Industrials
To look for biotech stocks that did well last year and that analysts are still positive on, CNBC Pro screened the iShares Biotechnology ETF and the SPDR S & P Biotech ETF. Potential upside to average price target of more than 40%. Four stocks stood out for being given on average more than 100% potential upside: Humacyte , Marinus Pharmaceuticals , Olema Pharmaceuticals and Ovid Therapeutics . Another three stocks in the screen drew 100% buy ratings from analysts: Ardelyx , Cabaletta Bio and Rocket Pharmaceuticals . Of these three, Rocket Pharmaceuticals got the highest potential upside of 81.4%.
Persons: Marinus, Biomea Organizations: Citi, Federal Reserve, CNBC Pro, Biotechnology, P Biotech ETF, Marinus Pharmaceuticals, Olema Pharmaceuticals, Ovid Therapeutics, Rocket Pharmaceuticals
The health-care sector may have done poorly in the last couple of years, but analysts are bullish on it right now, citing biotech as an area to watch. "Just two weeks into 2024, the healthcare sector has shrugged off the title of being a notable laggard in 2023," Citi said in a recent note. To look for biotech stocks that did well last year and that analysts are still positive on, CNBC Pro screened the iShares Biotechnology ETF and the SPDR S&P Biotech ETF. Subscribers can read more here. — Weizhen Tan
Persons: Weizhen Tan Organizations: Citi, CNBC Pro, Biotechnology, P Biotech ETF
Morgan Stanley and JPMorgan named their key China internet picks and the themes to watch right now. Focus is on resilient content leaders, unique growth opportunities, and AI enablers," Morgan Stanley said in a Jan. 18 note. Baidu Morgan Stanley described Baidu as the "best AI play" in China. Morgan Stanley pointed to its steady operating margin expansion and record-high subscription revenue growth in the second to third quarter of 2023. Morgan Stanley's price target is $150, or 67.7% potential upside.
Persons: Morgan Stanley, JPMorgan, Pinduoduo, Morgan, Baidu Morgan Stanley, Baidu, NetEase, — CNBC's Michael Bloom Organizations: JPMorgan, Alpha, Baidu Locations: China, United States
Dividend stocks in the Asia-Pacific beat the broader market in the fourth quarter of 2023 — bucking the trend in other regions. According to Morgan Stanley, the MSCI Asia Pacific ex Japan High Dividend Index outperformed the MSCI Asia Pacific ex Japan index by 1.76% in the fourth quarter last year. For the Asia-Pacific ex Japan region, Morgan Stanley produced a screen of what it called its "conviction list" of dividend stocks, using these criteria on a 12-month forward-looking basis: Likely to outperform the MSCI Asia Pacific ex Japan High Dividend Index. Low risk of having dividend cuts, as rated by Morgan Stanley analysts. Here are some stocks that appeared in Morgan Stanley's screen.
Persons: Morgan Stanley, Morgan, — CNBC's Michael Bloom Organizations: MSCI Asia, Asia, Fed Locations: Asia, Pacific, MSCI Asia Pacific, Japan, Asia Pacific
Here are four areas that are "clear beneficiaries from the coming integration of AI into everyday business and personal lives," according to Citi. AI infrastructure Key suppliers along the global semiconductor value chain are set to be big beneficiaries in 2024, Citi said. That will include chipmakers, semiconductor equipment and data centers. The continuing manufacturing and e-commerce boom will lead to the need for more automation and robotics, according to Citi. Cybersecurity Citi warned of a sinister side to the proliferation of AI: hackers using AI chatbots to write the code to carry out cyberattacks.
Persons: Kristen, there's, Cybersecurity Organizations: Nvidia, Citi, Citi Global Wealth, Semiconductor, FDA, Citi Research, Robotics, Cybersecurity Citi Locations: Singapore
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