Morgan Stanley has highlighted Nvidia as a top tech stock to watch ahead of earnings season, citing positive catalysts that could drive share gains in the coming months. The firm’s analyst, Joseph Moore, is optimistic about the AI chipmaker’s prospects, pointing to strong spending trends in AI and robust demand for the company’s GPUs. Despite Nvidia’s shares being up 77% this year, the firm sees plenty of upside potential. However, it is essential to consider the potential risks associated with investing in a high-growth stock like Nvidia, such as market volatility and regulatory challenges.
Another tech stock that Morgan Stanley is bullish on is Keysight Technologies, an electronic test equipment and software company. Analyst Meta Marshall believes that Keysight is well-positioned to capitalize on the AI/ML tailwind due to its diverse portfolio and broad customer base. While the company’s shares are currently down around 7% this year, the firm sees room for growth, especially considering the double-digit earnings growth story and defensive market exposures. However, investors should exercise caution and conduct thorough research before investing in Keysight Technologies, as the tech sector can be highly volatile.
Fortinet: Cybersecurity at the Forefront of Investor Interest
Fortinet is another tech stock that Morgan Stanley is bullish on ahead of earnings season. Analyst Hamza Fodderwala is optimistic about the cybersecurity company’s prospects, citing regulatory tailwinds and steady demand for its services. While Fortinet’s shares are up nearly 10% this year, the firm sees further upside potential, especially in the second half of the year. Investors interested in Fortinet should be aware of the inherent risks associated with investing in cybersecurity stocks, such as data breaches and regulatory changes.
Dell is another tech stock that Morgan Stanley believes has significant growth potential. The company’s strength in AI server orders and expanding cloud customer base are key catalysts for its growth trajectory. While Dell’s guidance suggests margin pressure, the firm believes that the company’s revenue and earnings outlook are conservative. However, investors should be cautious as Dell’s AI narrative is still in its early stages, and market conditions can change rapidly.
Apple: A Strong Performer Despite Market Volatility
While Apple is not immune to market volatility, Morgan Stanley believes that the tech giant will beat earnings estimates in the near term. The firm points to Apple’s upcoming WWDC event as a potential catalyst for share price growth. However, investors should exercise caution and monitor market conditions closely, as Apple’s stock price can be influenced by a variety of factors, including trade tensions and economic indicators.