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Tech Investor Paul Meeks Plans to Buy the Dip in Tech Stocks After Correction

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Tech Investor Paul Meeks Plans to Buy Tech Stocks After Correction

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Overview

Tech investor Paul Meeks intends to take advantage of the recent weakness in tech stocks once the correction has run its course. The S & P 500 has experienced a strong rally this year, largely driven by the strength of tech stocks. However, in August, the Wall Street index fell 1.8%, breaking its five-month winning streak. The tech-heavy Nasdaq Composite also dropped more than 2%. It remains uncertain if September, historically a weak month, will fare any better. Nonetheless, Meeks plans to buy the dip and add to his positions once the market stabilizes.

Reasoning

Meeks believes that the recent decline in tech stocks presents an opportunity for investment. He acknowledges that there is not much concern about the Federal Reserve raising interest rates again, but rather that they won’t lower them in the near future. Meeks expects artificial intelligence, which has played a major role in the market’s rally this year, to continue being significant. However, he emphasizes that the beneficiaries of AI are a smaller group than many investors realize.

Stock Picks

Meeks has identified several stocks that he is interested in buying once the correction in tech stocks seems to have exhausted itself. These stocks include Nvidia, Meta, Alphabet, Amazon, Oracle, Advanced Micro Devices, Microsoft, Arista Networks, Palo Alto Networks, Super Micro Computer, Harmonic, and Extreme Networks. Meeks refers to some of these stocks as “contrarian” smaller-cap stocks.

Nvidia

Meeks views Nvidia, a chipmaker that has experienced significant growth due to AI, as reasonably priced. He believes the stock may have further upside potential based on its price/earnings-to-growth ratio. Despite the recent decline in Nvidia’s share price, Meeks sees an opportunity for growth and would consider buying more shares once the dip has stabilized.

Meta and Alphabet

Meeks predicts that both Meta and Alphabet will experience a rebound in digital advertising, as they dominate the market. He suggests that Alphabet, in particular, will benefit from its strong focus on AI technology.

Amazon

Meeks considers Amazon to be his favorite among the mega-cap U.S. tech stocks due to the recovery of its cloud business in the United States. However, he advises waiting for the outcome of the company’s anti-competition lawsuit before making any investment decisions.

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