Bank of America says there are still plenty of top tech stocks to buy amid continued market uncertainty. The Wall Street bank listed several companies that analysts believe are selling at attractive entry points. CNBC Pro combed through Bank of America research to find the top tech stocks with buy recommendations. What we found were Amazon, Netflix, Palantir, Uber, Nvidia, and Apple. Apple “The best is yet to come,” analyst Wamsi Mohan said of the iPhone maker. Bank of America is backing the Tim Cook-led company after its revenue and net income beat analysts’ expectations earlier this month. “Furthermore, we see the potential for significant (smartphone) unit growth in the December quarter and across F25 as a result of the rollout of Apple Intelligence,” he wrote. With Apple Services hitting record sales and new products debuting in September, Apple shares have plenty of room to rise going forward, Mohan concluded. “We see the rollout of Apple Intelligence as another tailwind for Apple Services growth,” he added. Apple shares have fallen about 3% this month. “Given the multi-year iPhone upgrade cycle, gross margin tailwinds, and strong cash flows, we see the potential for consensus estimates to be revised upwards, and we reiterate our buy rating,” he continued. Netflix analyst Jessica Leif Ehrlich holds shares of the video streaming service. The company reported second-quarter earnings in mid-July, with sales and earnings beating expectations with solid guidance. Leif Ehrlich noted strong subscriber growth. “NFLX’s existing scale advantage is coming to fruition, with healthy revenue growth and effective cost management boosting operating leverage and raising our 2024 margin outlook to 26%,” she wrote. Bank of America also said advertising tailwinds are beginning to benefit Netflix. “In general, we remain bullish on advertising’s long-term potential, but expect stronger contributions in ’25 and ’26,” Leif Ehrlich said. Meanwhile, Netflix shares have fallen about 8% in the past month. “In our view, Netflix is best positioned in the media industry and has multiple growth drivers, including accelerating fast-growing advertising business,” she said. The ride-sharing platform is on a roll, according to Uber analyst Justin Post. Uber released a stellar earnings report earlier this week, beating analysts’ expectations on both revenue and profit. Uber also issued solid future guidance. Post acknowledged that it’s been tough for Uber, but said the company has made it through. “With the help of improved efficiency, advertising growth and massive cost leverage, Uber is meeting tough expectations and our outlook suggests steady growth going forward,” he wrote. BofA said the results could ease investor concerns that a slowdown is on the way. Additionally, Post said he’s bullish on the company’s self-driving future. “Uber has signaled news coming soon that suggests new or expanded partnerships (for self-driving),” he said. Meanwhile, Uber shares have fallen about 4% over the past month.“We remain constructive on the fundamentals given the company’s large market size and the potential for technological advances to reduce reliance on drivers and improve profit margins,” Post continued. Apple: “The best is yet to come. A slight forecast overrun and accretion will suffice for now. … Additionally, we also see the potential for significant unit growth in the December quarter and across F25 due to the rollout of Apple Intelligence. … Given the multi-year iPhone upgrade cycle, tailwinds to gross margins, and strong cash flows, we reiterate our buy recommendation as consensus estimates are likely to be revised upwards.” Amazon: “AWS was a surprise, but retail is not immune to macro. It remains well positioned for AI. … We believe Amazon’s focus on customer and buyer experience is well-positioned for the Internet. We believe Amazon is well-positioned to capitalize on the global growth of e-commerce and other secular trends such as cloud computing, online advertising, and connected devices.” Netflix: “NFLX is best positioned in the media industry in our view, with multiple growth drivers, including an accelerating fast-growing advertising business. … NFLX’s existing scale advantage is supported by healthy revenue growth and effective cost management that will drive operating leverage and support our 2024 margin outlook.” “The company’s AI-powered software market position, differentiated end-to-end, Ontology-powered, highly secure solutions, and first-mover advantage should support revenue growth and margin growth in the medium term. The growing urgency to modernize military and intelligence capabilities could be a big opportunity for Palantir.” Uber “With the help of improved efficiencies, advertising growth, and large cost leverage, Uber is meeting stringent expectations and our outlook suggests steady growth going forward. … On the self-driving car front, Uber has announced news coming soon that suggests new and expanded partnerships. … We are constructive on fundamentals given the large TAM and technology advancements that are likely to reduce dependency on drivers and improve margins. ” Nvidia “Blackwell’s transition may dampen upside in the near term. … Either way, any pushout could put further pressure on NVDA shares amid continued market uncertainty around interest rates and geopolitics. However, as the challenge lies with supply, not demand, we view the selloff as an expanding buying opportunity and would not fundamentally disrupt NVDA’s long-term momentum.”
BofA says tech stocks like NVIDIA should be bought on the dip amid uncertainty
By NvidiaDaily
