Expect markets to grind higher into the end of the year, says Hightower’s Stephanie Link
Спикеры
Stephanie Link
— Главный инвестиционный стратег, Hightower
Stephanie Link argues the U.S. economy and earnings are strong enough to keep investors fully invested and grind the market higher into year-end despite geopolitical worries. She likes AI/semiconductor exposure and expects good Walmart and Target reports. Among tech and momentum names, she specifically favors Amazon, Micron, NVIDIA, and SpaceX.
- Link sees economic momentum accelerating, citing the Atlanta Fed GDP tracker and broad earnings growth.
- She expects markets to grind higher into year-end and favors staying fully invested and diversified.
- AI and the semiconductor food chain remain a key driver, supported by Cisco, Applied Materials, CoreWeave, and Supermicro.
- She expects strong Walmart and Target reports on resilient consumer spending.
- Amazon is her best-positioned Magnificent Seven name on AWS acceleration and retail strength.
- She recently bought Micron and NVIDIA for the first time.
- She is also buying SpaceX after its pullback.
Идеи
AI food chain still working.
She argues the economy is accelerating because AI and its food chain are still working, citing recent reports from Cisco, Applied Materials, CoreWeave, and Supermicro as evidence. This keeps her positive on the AI/semiconductor supply chain as a continuing driver.
Expect very good Walmart and Target reports.
Banks report a strong consumer, with the low end improving and lending growth of 8-10%; ISM services and retail sales are also solid. Against this backdrop, she expects very good quarterly reports from Walmart and Target.
Stay fully invested; markets grind higher.
Earnings growth is broad-based, with 10 of 11 sectors growing last quarter and 7 of 11 posting double-digit growth; revenues and gross margins are expanding. She thinks investors should stay fully invested and diversified and that markets will grind higher into the end of the year despite geopolitical worries.
Amazon best positioned mega-cap tech.
Amazon is the best-positioned Magnificent Seven name because it can win in many ways: AWS growth is accelerating to 38% from 27%, retail comps are running about 9%, and margins are expanding.
Micron has $100 billion bookings.
She recently bought Micron after it fell 20% from its highs, and she cites $100 billion of bookings between now and the end of the year as support.
Nvidia cheapest since 2019, growing fast.
She recently bought NVIDIA for the first time because it is the cheapest since 2019 while growing revenue about 85%, carrying 75% margins, and expected to double free cash flow.
SpaceX pulled back, monetization within year.
She has been buying SpaceX after it pulled back about 30%; it had a great quarter and management talked about monetization within a year, making her comfortable with 65% capex growth.
