According to Wall Street analysts, stocks like NVIDIA and Apple have room to rise further this summer. The tech-heavy Nasdaq Composite Index rose 2.4% this week, bringing its gains in 2024 to more than 14%. Additionally, the S&P 500 ended the week up more than 1.3%. CNBC Pro combed through Wall Street’s top research to find must-hold tech stocks. Among them are Broadcom, Uber, Apple, Datadog and NVIDIA. Broadcom Melius Research analyst Ben Reitzes recently initiated research coverage of the semiconductor manufacturer with a buy recommendation. Reitzes called Broadcom a “must-hold” AI stock, as competition from companies like NVIDIA remains intense. Broadcom completed its acquisition of VMware in late 2023, which Reitzes said will be a long-term catalyst. “The rest of AVGO will likely benefit from a cyclical economic recovery in 2025, and we are very confident in VMware’s strategy,” he said. Broadcom CEO Hock Tan is also great, Reitzes said. “Tan has put Broadcom on a strong trajectory that will continue into the future,” he wrote. Meanwhile, the company’s stock is up 26% this year. “All told, we believe AVGO is on the path to delivering $70+ EPS power within a few years,” Reitzes continued. Datadog The cloud monitoring platform is “establishing itself as the next generation of high-quality large caps,” according to Bank of America. Analyst Koji Ikeda recently upgraded Datadog to Buy from Neutral, saying the company is on a roll. “Since the IPO, Datadog has beaten revenue and operating margin guidance pretty consistently,” he wrote. Additionally, Datadog is benefiting greatly from artificial intelligence. Ikeda believes AI will be a “meaningful growth driver” for Datadog over time. Moreover, customer demand is solid and Datadog’s “value proposition” is too attractive to ignore, Ikeda said. Though the company’s stock is down 10% this year, Ikeda still supports the stock. He put it succinctly: “It’s the best it can be.” Uber Wealthy consumers are spending, and that’s been a big driver of Uber’s stock, Oppenheimer analyst Jason Helfstein said recently. “Retail sales continue to be strong, and that’s coming from affluent customers, which are Uber’s primary customers,” he said. Memorial Day travel was also strong, and consumer spending shows no signs of slowing, he said. Positive drivers for Uber include improved transportation solutions, expanding markets and new developments in autonomous technology, Helfstein said. The company’s shares are up nearly 13% this year, but they remain attractively undervalued and “have the most upside potential of any large-cap stock,” he added. “On the other hand, a correction from the highs could be a big factor in the stock’s future.” [an] Attractive entry point…,” he continued. Nvidia – Wells Fargo, Overweight “Our overweight rating is based on Nvidia’s competitive positioning in gaming GPUs and our positive stance on expanding growth opportunities in data center, HPC and emerging/expanding AI opportunities….We see Nvidia as one of the most compelling secular growth stories in large-cap semiconductors.” Apple – Goldman Sachs, Buy “We recommend Buying AAPL as we believe the market’s focus on slowing product revenue growth is masking the strength of the Apple ecosystem and the associated revenue sustainability and visibility….Valuation is attractive relative to AAPL’s historical multiples (both on an absolute and relative basis) and relative to major technology peers.” Broadcom – Melius Research, Buy “We believe the rest of AVGO will also likely benefit from a cyclical economic recovery in 2025, and we are very confident in VMware’s strategy….Broadcom is one of the AI stocks to own given its leadership as a fabless semiconductor provider in many categories. … [CEO] Tan has put Broadcom on a strong trajectory that will continue into the future. … Overall, we think AVGO is on track to deliver $70+ EPS power within a few years.” Datadog – Bank of America, Buy “Best in show. … Establishing itself as the next generation of high-quality large caps… DDOG has a robust platform with 22 products. Its value proposition is attractive to spend consolidators and those looking for cutting-edge technology. We believe this is just the beginning of DDOG’s AI journey, which will likely be a significant growth driver. … Datadog has delivered fairly consistent upside to revenue and operating margin guidance since its IPO.” Uber – Oppenheimer, Outperform “Core consumer remains strong. Reaffirmed $90 target, most upside potential among large caps. … Meanwhile, correction from highs provides attractive entry point, with expectations higher than pre-analyst day, shares are trading lower. Travel remains a tailwind. … Retail sales continue to perform well, driven by high net worth customers, UBER’s primary customer.”
