Nvidia stands out amid macro uncertainty, strategist says

Market Domination anchors Julie Hyman and Josh Lipton sit down with UBS Global Wealth Management head of asset allocation Jason Draho to discuss the strategist's bullish view of Nvidia (NVDA) and the tech sector (XLK) at large amid macroeconomic uncertainties as the Federal Reserve considers rate cuts. The tech sector's "earnings numbers are coming through," Draho said, highlighting Nvidia's most recent quarterly report, in which he said "the results were still impressive" despite the market's reaction. "Perhaps didn't guide upwards as much as the market has liked in the past," he said, adding "the bar is just so high" for the chipmaker that "there's easy scope for disappointment." Draho said Nvidia's market position is promising, given that demand for its products outpaces supply as UBS expects artificial intelligence (AI) spending to accelerate in the next year. Nvidia CEO Jensen Huang spoke at the Goldman Sachs Communacopia & Technology Conference, saying there is "intense" demand for the company's chips. "It's not bad owning these kind of companies that have really strong earnings power, really dominant positions" rather than "taking either a lot of cyclical risk or getting too defensive in an environment where ultimately we still think it's going to be a soft landing and a relatively good macro environment over the next six to 12 months," Draho tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Naomi Buchanan. Read More...