The state of the tech trade as SK Hynix opens for trading
Speakers
Kevin Simpson
— Investment Committee Member
Bill Baruch
— Investment Committee Member
Steve Weiss
— Chief Investment Officer, Short Hills Capital Partners
Jenny Harrington
— CEO, Gilman Hill Asset Management
Summary
The Halftime Report panel debates the tech trade after SK Hynix begins Nasdaq trading. Kevin Simpson initiates a new Meta position, buys Nvidia and Broadcom, and calls for Magnificent Seven outperformance in the second half as capital‑expenditure fears ease. Bill Baruch adds to Meta, citing Zuckerberg’s AI vision and cloud‑monetization opportunity. The group emphasizes that tech needs positive earnings guidance and catalysts, with record inflows into the sector providing support.
- Kevin Simpson buys Meta (META) for the growth portfolio, seeing a pivot to AI‑driven revenue and cloud‑compute sales that makes it a competitor to Google and Amazon.
- Kevin Simpson also buys Nvidia (NVDA) and Broadcom (AVGO) as momentum picks up and money flows into Mag‑7 names.
- Kevin Simpson’s base call is that the Magnificent Seven (MAGS ETF) will outperform in H2 2025 as capex‑spending fears have reversed.
- Bill Baruch adds to Meta (META), highlighting Zuckerberg as a visionary CEO who intends to monetize excess AI compute via cloud services.
- Steve Weiss cautions that tech is catalyst‑dependent and that marginal buyers are hard to find at current levels, though the AI narrative remains intact.
- Jenny Harrington notes that Q2 earnings must significantly exceed already elevated expectations to drive the next leg higher.
- Bank of America reports a record $19B inflow into tech year‑to-date, supporting a bullish rotation rather than a retreat from risk.
- SK Hynix opens on Nasdaq, but no panelist offers a direct trade thesis on the stock.
Ideas
MAG-7 to outperform on easing capex fears
MAG-7 will outperform in the second half because the capitulation on capex fears has made a U‑turn and money continues to flow into tech. The Mag‑7 ETF (MAGS) holding its 200‑day moving average at 65 is key, and investors will reload longs or bullishly rotate rather than retreat from risk assets.
Nvidia and Broadcom are buys right here
Nvidia is waking up after digesting and holding its 200‑day moving average, and Broadcom is similarly set to run. Both are buys right here as the Mag‑7 rotation continues and new money is put to work.
Meta monetizes AI compute, becoming cloud competitor
Meta is on the verge of a major comeback from its lowest level since late 2022/early 2023. Zuckerberg is the visionary among Mag‑7 CEOs and is ahead of peers in AI innovation. He plans to turn excess compute into a cloud‑like revenue stream, selling it at a premium, which removes the cloud over AI monetization. Bought more on the unjustified dip.
