According to Bank of America, there are still plenty of top tech stocks to buy despite ongoing market turmoil. The Wall Street bank named several companies that analysts are selling at an attractive entry point. CNBC Pro combed through Bank of America’s research to find the best tech stocks to buy. Our finds included Amazon, Netflix, Palantir, Uber, Nvidia and Apple. Apple “The best is yet to come,” analyst Wamsi Mohan said of the iPhone maker. BofA is backing the Tim Cook-led company after revenue and net income beat analyst estimates earlier this month. “We also see the potential for a significant acceleration in (smartphone) units in the December quarter and overall in F25 with the launch of Apple Intelligence,” he wrote. Apple Services posted record revenue, leading Mohan to conclude there is still plenty of upside for Apple shares when new products launch in September. “We see the launch of Apple Intelligence as another tailwind for Apple Services growth,” he added. Apple shares have fallen about 3% this month. “Confirm Buy as we see potential for a rise in consensus estimates given the multi-year iPhone upgrade cycle, gross margin tailwinds and strong cash flows,” he continued. Netflix analyst Jessica Reif Ehrlich is holding onto shares of the streaming movie service. The company beat expectations on revenue and earnings and provided solid guidance following its second-quarter earnings report in mid-July. Reif Ehrlich noted that strong subscriber growth is continuing. “NFLX’s existing scale advantage is bearing fruit as healthy revenue growth and effective cost controls are boosting operating leverage, leading to an increased 2024 margin forecast to 26%,” she wrote. BofA also says the tailwinds from Netflix’s promotion are starting to pay off. “Overall, we remain optimistic about the longer-term potential in advertising, although we expect a larger contribution in 2025/2026,” Reif Ehrlich said. Meanwhile, Netflix shares have fallen nearly 8% over the past month. “In our view, Netflix remains the best-positioned company in media and has several growth drivers, including accelerating its burgeoning advertising business,” she said. Uber The ride-sharing platform is running on high steam, according to analyst Justin Post. Uber reported a blowout earnings report earlier this week in which it beat analyst estimates on both revenue and profit. Uber also provided robust future guidance. Post acknowledged that the setup has been difficult for Uber, but said the company has pulled through. “Using efficiency gains, advertising growth and cost levers at scale, Uber is meeting high expectations and has an outlook that points to stable growth from here,” he wrote. BofA said the results could allay investor fears that a slowdown is imminent. In addition, Post said he is optimistic about the company’s future in autonomous driving. “Regarding (autonomous mobility), Uber has hinted at more news coming soon, suggesting new and/or expanded partnerships,” he said. Meanwhile, Uber shares have fallen nearly 4% in the past month. “We are optimistic about fundamentals as a large overall market and technological advances should reduce dependence on drivers and improve margins,” Post continued. Apple “The best is yet to come; a slight beat and an increase will do for now. … We also see the potential for significant unit acceleration in the December quarter and overall in F25 with the launch of Apple Intelligence. … Reiterate our Buy rating as we see the potential for consensus estimates to increase given the multi-year iPhone upgrade cycle, gross margin tailwinds and strong cash flows.” Amazon “AWS surprises, but retail is not immune to macroeconomics; still well positioned for AI. … We think Amazon’s focus on the customer and the shopper experience is right for the internet. We think Amazon is well positioned to benefit from global growth in e-commerce and other secular trends such as cloud computing, online advertising and connected devices.” Netflix “In our view, NFLX remains the best-positioned company in the media space and has several growth drivers, including accelerating growth of its burgeoning advertising business. … NFLX’s existing scale advantage is bearing fruit as healthy revenue growth and effective cost controls are driving operating leverage, leading to an increased 2024 margin forecast to 26%. … Overall, we remain optimistic about the longer-term potential in advertising, although we expect a larger contribution in 2025/2026.” Palantir “PLTR’s dominant position in the AI-powered software market, differentiated end-to-end, ontology-driven and highly secure solutions, and first-mover advantages should support revenue growth and boost earnings over the medium term. The increasing urgency of modernizing military and intelligence capabilities could provide significant opportunities for Palantir.” Uber “Using efficiency gains, ad growth, and cost leverage at scale, Uber is meeting high expectations and an outlook that points to stable growth from now on. … .On AV, Uber soon hinted at more news pointing to new and/or expanded partnerships. … .We are optimistic about fundamentals, with a large TAM and technological advancements likely to reduce driver dependency and improve margins.” Nvidia “Blackwell’s transition could dampen upside in the near term. … .Notwithstanding, any shifts could put further pressure on NVDA’s share price given ongoing market uncertainty regarding pricing/geopolitics. However, we view any sell-off as (an) enhanced buying opportunity as challenges lie not in demand but in supply, which will not fundamentally affect NVDA’s long-term momentum.”
