Analyst: these three tech stocks will do well in 2023
The Neuberger Berman analyst explained why on CNBC Squawk Box.
Tech stocks are down significantly this year due to higher interest rates.
Tech stocks sure have had a rough 2022 as the Fed moved to aggressively lift rates in hopes of taming record inflation. But the next year, as per a Senior Neuberger Berman analyst, could be a different story, at least for a handful of stocks in this space.
Last month, Amazon.com Inc lowered its guidance for the holiday quarter. Still, Daniel Flax has reasons to believe that this tech behemoth will do well in 2023.
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They’re continuing to invest in Prime, more one-day delivery, more content like NFL. So, we think that’s an attractive name.
A week ago, Amazon announced its biggest layoff ever to cut costs in the midst of macro headwinds as we reported here.
We see them executing very well on their product cycle across the phone and wearables. So, we continue to like that story.
For the year, shares of the iPhone maker are down nearly 20%.
Lastly, he’s bullish on Nvidia Corporation that’s taken a big hit on the gaming side of its business (find out more) due to softening consumer demand. Still, Daniel Flax noted:
As we move through 2023, the market will see their new product cycle. Ultimately, markets about looking forward and I think we get visibility on a return to growth late next year.
Note that Wall Street has a consensus “overweight” rating on the Nvidia stock.
All in all, Flax agrees the near-term may remain challenging for these tech stocks as inflation is still flying high, rates are likely to remain elevated, and the possibility of a recession remains on the table.
But looking further out, these three beaten down quality names will be in recovery, he concluded.
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