The two tech stocks to buy despite major sector sell-off

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Nasdaq Composite News

Apple,Amazon,Algorithmic Trading

Nvidia (NVDA) and Apple (AAPL) are driving the tech-heavy Nasdaq Composite (^IXIC) into turmoil amid a major sell-off on Wall Street. D.A. Davidson senior...

major sell-off on Wall Street"There's traders selling because they're covering their yen carry trade. There's computer algorithmic trading that's selling because those traders sold. And then there's index fund computers that are selling because those two sold. What's not happening is somebody didn't wake up this morning and say Apple, Amazon are worth 5% less than they were on Friday. That's not happening," Luria explains.

So gil should investors be viewing this the dramatic move that we're seeing lower in a name like Apple and a name like NVIDIA.Again, companies that will do well, I don't think anybody is changing their estimates materially for the outlook for these companies for the next 3 to 5 years.One of which is that some uh problematic stories came up over the weekend.

And the reason that's important is that it's not just a delay and via has a window to sell to Microsoft Amazon and Meta while those companies are hot and bothered about building out data centers as quickly as they can that window will shut at some point either next year or the year after that, if NVIDIA is missing out on some of those sales during that window, that does have an impact on Nvidia's value.

Again, their window is finite and if there's less chips sold in that window, that's not good for them.But I, I guess your take away from the selling that we have seen and kind of this reversal in terms of some of the narrative and sentiment, especially surrounding Big Tech. But again, these are very important businesses that have been solid, uh, prospects and good visibility into realizing the 3 to 5 year prospect that hasn't changed this morning.

 

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