Aptus Capital Says 'Absolutely' Buy The Dip In Nvidia, Microsoft And Broadcom—But Amazon And Meta Are The Top Picks

Amid a two-day pullback in the tech sector, Aptus Capital Advisors is urging investors to capitalize on market weakness by aggressively buying premier mega-cap tech stocks.

The Mega-Cap Tech Play

David Wagner, head of equities portfolio manager at Aptus Capital Advisors, emphasized that the recent tech pressure represents a prime entry point rather than a broader market correction. When asked if investors should step in during this cooling-off period, Wagner responded, “Absolutely.”

While advocating for a broad approach to tech giants, Wagner pinpointed specific targets for investors. “I’d be buying your Amazon.com Inc. (NASDAQ:AMZN), I’d be buying your Microsoft Corp. (NASDAQ:MSFT). I’d be buying your Nvidia Corp. (NASDAQ:NVDA) and your Broadcom Inc. (NASDAQ:AVGO). There’s no doubt about it,” he stated.

However, he singled out two clear frontrunners for immediate allocation, adding, “I think Amazon and Meta Platforms Inc. (NASDAQ:META) are my favorite now.”

Wagner noted that despite recent volatility, these mega-cap names are trading at a substantial discount relative to their five-year and ten-year histories.

Back To Economic Basics

Addressing market anxieties regarding whether the AI-driven trade is sustainable, Wagner dismissed fears that corporate margins are artificially bloated.

He urged investors to “get back to the basics,” noting that the S&P 500 is growing earnings at nearly 27% year over year, driven by powerful corporate operating leverage.

For active managers trying to fade the tech rally, Wagner issued a sharp warning: “The beatings will continue until morale improves on the tech space and this overall AI narrative because I think it’s here to stay.” He characterized AI as a revolutionary, long-term force that will continue to reward risk assets.

Portfolio Strategy Over Bonds

Instead of pivoting to defensive fixed-income assets, Wagner warned that the 10-year Treasury yield could soon reach 4.8%. He suggested that investors look to equity options for downside protection rather than over-owning bonds.

“The biggest mistake that investors can do right now is be too conservative in their portfolio,” Wagner concluded, advising market participants to buy beta.

How Have These Picks Performed?

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.