A tough-on-the-eyes presidential debate may have left viewers with more worry than confidence (or questions than answers), but there are still plenty of reasons why investors should remain bullish on tech darlings like Nvidia ( NVDA ).
“From a technological perspective, the political environment will not change much under either [candidate],” Goldman Sachs portfolio manager Brook Dane told Yahoo Finance’s executive editor. Brian Sozzi on his ‘Opening Bid’ podcast (see video above or listen here).
Dane says a combination of entrenched bullish sentiment around technology stocks and their strong earnings and cash flow outlook should deflect election concerns. AI companies are particularly insulated from political concerns given how quickly they are expanding, Dane added.
Former President Donald Trump and current President Joe Biden left debate watchers stunned last week, with the former spewing falsehoods and the latter appearing fragile and out of touch.
Pressing topics like technology regulation and the growing influence of AI have remained on the back burner.
Tech investors noticed the lack of attention to controversial issues and continued to bet on the mega-cap winner, in large part because of the facts Dane laid out.
Nvidia (NVDA) recently reached a market cap of $3.34 trillion, making it the most valuable company in the world. Shares traded mostly sideways after the first contentious debate.
Apple (AAPL) shares barely moved – down only slightly from their 52-week high of $220.
Microsoft (MSFT) also held firm; it is just below the record high it closed on June 27th.
Regardless of who wins, Dane recognizes an environment of heightened scrutiny surrounding social media companies and the relationship between the US and China.
But AI names can still work well. “I think Washington in general is behind in understanding how profound this change is and how structural it is,” he said.
Calls from experts like Dane will be put to the test again soon.
Upcoming election cycle events include the Republican National Convention scheduled for July 15-18 in Milwaukee, the Democratic National Convention August 19-22 in Chicago, and another presidential debate on September 12.
Meanwhile, technology companies promise to show us that we haven’t seen anything yet.
“What we’ll see with these tools over the next two to five years is incredibly profound,” Dane said. “This will fundamentally change the way people work and interact with technology.”
Bradesco’s head of equity strategy, Ben Laidler, also believes that the election is not an event for investors in the medium term. He believes we are at the beginning of a bull market in stocks. Laidler explains his thesis in an episode of ‘Opening bid‘, which you can listen to below.
Opening bid List of episodes
Click here for the latest technology news that will impact the stock market
Read the latest financial and business news from Yahoo Finance
