Stocks like Nvidia and Apple have more room to run this summer, according to Wall Street analysts. The tech-heavy Nasdaq Composite increased by 2.4% this week, bringing its 2024 gain to more than 14%. In addition, the S & P 500 finished the week up more than 1.3%. CNBC Pro combed through top Wall Street research to find the must-own tech stocks. They include: Broadcom , Uber, Apple, Datadog and Nvidia. Broadcom Melius Research analyst Ben Reitzes recently launched research coverage of the semiconductor manufacturer with a buy rating. Reitzes called Broadcom a “must-own” AI stock even as competition remains fierce from companies like Nvidia. Broadcom completed its acquisition of VMware in late 2023, which Reitzes says is a long term catalyst. “The rest of AVGO is likely to also benefit in 2025 from a cyclical upturn and we are very confident in the strategy for VMware,” he said. Broadcom CEO Hock Tan is also impressive, Reitzes says. “Tan has put Broadcom on a strong path that should carry on,” he wrote. Meanwhile, shares of the company are up 26% this year. “All told, we think AVGO is in the process of demonstrating over $70 in EPS power within a few years,” Reitzes went on to say. Datadog The cloud monitoring platform is “establishing itself as the next high quality large cap stock,” according to Bank of America. Analyst Koji Ikeda recently upgraded Datadog to buy from neutral, saying the company is firing on all cylinders. “Since its IPO, Datadog has been delivering pretty consistent upside to its revenue and operating margin guidance,” he wrote. In addition, Datadog is a major artificial intelligence beneficiary. In time, AI will be a “meaningful growth driver” for Datadog, Ikeda believes. Further, customer demand is robust, Ikeda said, while Datadog’s “value proposition” is too attractive to ignore. Shares of the company are down 10% this year, but Ikeda is standing by the stock. “Best in show,” he said succinctly. Uber Wealthier consumers are spending and that’s a major catalyst for shares of Uber, Oppenheimer analyst Jason Helfstein said recently. “Retail sales continue to be strong, driven by affluent customers, which are UBER’s core consumers,” he said. Memorial Day travel was robust as well, he said, while consumer spending is showing no meaningful sign of slowing, Oppenheimer wrote. Other positive catalysts ahead for Uber include improved transportation solutions, market expansion and new developments in autonomous technology, Helfstein said. Shares of the company are up almost 13% this year, but remain compelling and undervalued with the “most upside in Large-Cap,” he added. “Meanwhile, correction from highs provides [an] attractive entry point…” he went on. Nvidia – Wells Fargo, overweight “Our Overweight rating is based on our positive stance on Nvidia’s competitive positioning in gaming GPUs and expanding growth opportunities in data center, HPC, and emerging / expanding AI opportunities. … . We see Nvidia as one of the most attractive secular growth stories in large-cap semis.” Apple – Goldman Sachs, buy “We are Buy-rated on AAPL as we believe that the market’s focus on slower product revenue growth masks the strength of the Apple ecosystem and associated revenue durability and visibility. … .Valuation is attractive relative to AAPL’s historical multiple — both on an absolute and relative basis — and compared to key tech peers.” Broadcom – Melius Research, buy “The rest of AVGO is likely to also benefit in 2025 from a cyclical upturn and we are very confident in the strategy for VMware,. … .Broadcom is one of the must-own AI stocks due to its leadership as a fabless semiconductor provider across many categories. … [CEO] Tan has put Broadcom on a strong path that should carry on. … .All told, we think AVGO is in the process of demonstrating over $70 in EPS power within a few years.” Datadog – Bank of America, buy “Best in show. …. .Establishing itself as the next high quality, large cap stock … .DDOG has a robust platform with 22 products. Its value proposition is attractive for spend consolidators and…those who are yearning for bleeding edge tech. We believe this is only the beginning of DDOG’s AI journey. AI will likely be a meaningful growth driver. … .Since its IPO, Datadog has been delivering pretty consistent upside to its revenue and operating margin guidance.” Uber – Oppenheimer, outperform “Core Consumer Remains Strong; Reiterating $90 Target & Most Upside in Large-Cap. … .Meanwhile, correction from highs provides attractive entry point as estimates now higher than pre-Analyst Day, while stock is lower. Travel remains a tailwind. … .Retail sales continue to be strong, driven by affluent customers, which are UBER’s core consumers.”
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