[ad_1]
The market rally will fade soon, but certain tech names are poised to outperform, according to hedge fund manager Dan Niles. The stock market is ending the first quarter higher , with tech stocks leading the way. The Technology Select SPDR ETF is up 9% in March, more than any other sector ETF. One name in the sector that Niles has liked for a while is Meta . He bought shares of the Facebook parent after the stock was crushed in late October following its guidance for “horrific expense growth,” he said in an interview Friday with CNBC’s ” Squawk on the Street .” However, since cutting expenses through layoffs and restructuring, the stock has rallied and is up nearly 75% year to date. META YTD mountain Meta’s climb this year There will also be certain companies that benefit from artificial intelligence. Nvidia will be the big winner, he said. The company recently unveiled new products at partnerships at its developer conference and launched its DGX Cloud, which can be used to train models behind generative AI applications. “We are going to need more powerful microprocessors as well and Intel is very, very inexpensive,” Niles said. Intel’s earning figures are going to be “OK” because of their draconian cuts heading into this quarter, he said. Outside of tech, Niles sees opportunity in sports-betting name DraftKings . Overall, he expects the market rally to be short lived. On April 14, earnings season kicks off with big banks reporting, including JPMorgan Chase . “That’s sort of your sell by date on this rally,” he said. “Earnings are going to have get cut anywhere between 10% to 20% on bank EPS just because you’ve had deposit rates go up a lot, which squeezes their net interest income margins,” Niles said.
[ad_2]
ReportWire
ReportWire newsroom contributor.