In a time of heightened market volatility, investors are looking for opportunities to put their money to work. With the CBOE Volatility Index briefly soaring to 66 during a recent selloff, concerns about an imminent recession have led to a global market sell-off. Tech stocks have been particularly impacted, with the S & P 500 Information Technology index and the Invesco QQQ Trust both down by more than 4% over the past month.
Amidst these market conditions, Bernstein has outlined a basket of its top technology, media, and telecommunications stock ideas. These stocks have a median upside of 26% to Bernstein’s price targets, making them attractive options for investors looking to capitalize on potential gains in the tech sector.
Uber: A Dominant Player in Tech
One of the stocks highlighted by Bernstein is Uber, a dominant player in the rideshare and delivery space. Bernstein sees a “substantial” turning point for Uber, with EBITDA expected to grow at a 40% compound annual rate from 2023 to 2026. This growth, along with a “wave of consumers leaning into convenience,” positions Uber for further success. With shares up 17% this year, Bernstein remains bullish on the stock, giving it an outperform rating and a target price of $95, implying a 31% upside from the current price.
Another top pick from Bernstein is Dell, which has seen its stock climb more than 45% in 2024. The firm has a price target of $155 for Dell, representing a 39% upside from the current price. Bernstein sees strong demand for AI servers driving revenue growth for Dell’s Infrastructure Solutions Group, with potential for improved profitability in the coming year. Additionally, the firm believes that Dell’s PC business is poised to benefit from a cyclical rebound and increased demand for AI offerings.
Bernstein also recommends Broadcom as a stock to watch in the tech sector. While details on the specific rationale for including Broadcom in their basket of top stock ideas are not provided, the recommendation from Bernstein suggests that the firm sees growth potential in this tech company.
Amidst heightened market volatility, it is crucial for investors to carefully select tech stocks that have the potential for strong upside. By considering recommendations from firms like Bernstein, investors can make informed decisions about where to put their money in the ever-changing tech landscape.