There’s nonetheless loads of large tech-related shares to purchase forward of earnings, Morgan Stanley stated not too long ago. The agency stated buyers can purchase the weak point in shares like Nvidia and Apple earlier than the businesses ship their quarterly outcomes. CNBC Professional combed by Morgan Stanley analysis to seek out shares the agency likes as earnings season continues. The shares embrace: Dell, Nvidia , Keysight Applied sciences , Apple and Fortinet. Nvidia The agency stated it is standing by shares of the AI chipmaker forward of earnings in late Could. Analyst Joseph Moore sees a slew of optimistic catalysts that might drive share positive aspects within the months forward. “NVDA continues to see strong spending trends in AI, with upward revisions in demand from some of the newer customers such as Tesla and various sovereigns,” the agency wrote. Moore stated his checks present demand stays excessive for the corporate’s graphic processing models also called GPUs. Nvidia’s information middle enterprise can also be firing on all cylinders, he added. “We expect a beat to consensus for the April quarter and strong guidance, setting the stage for another series of positive EPS revisions,” he went on to say. Shares are up a whopping 77% this yr, however the agency stated it nonetheless sees loads of upside. Keysight Applied sciences The digital take a look at tools and software program firm is one other standout, in response to the agency. “Within the T & M [test & measurement] space, we believe KEYS is best positioned to capitalize on the AI / ML tailwind given exposures across the various layers of networks including physical, protocol, and application,” analyst Meta Marshall wrote. Keysight is nicely positioned for share positive aspects with a various portfolio engaging to buyers, she stated. “The company has [the] broadest set of customers across semi, componentry, traditional networking and hyperscalers, which combined with their depth of portfolio, should make them a share gainer in AI, ” she wrote. In the meantime, shares of the corporate are down round 7% this yr with a lot room to run, the agency stated. “We remain [overweight] KEYS as we believe valuation today fails to credit double-digit earnings growth story and defensive end-market exposures,” Marshall stated. Keysight is scheduled to report its leads to Could. Fortinet Fortinet is scheduled to report earnings on Could 2 and Morgan Stanley continues to pound the desk for the inventory. Analyst Hamza Fodderwala stated he is getting extra bullish on the cybersecurity firm after attending a current consumer convention. “Net, we see upside to Q1 estimates and remain confident in 2H topline acceleration,” he wrote. As well as, the agency’s survey checks point out demand stays regular. “Our partner conversations indicated more stability in overall demand after a turbulent 2H’23,” he famous. Fodderwala additionally says Fortinet has “regulatory tailwinds” and that the necessity to safe crucial infrastructure means bookings stay “strong.” “Nearing the trough, poised to accelerate in 2H,” he stated succinctly. Fortinet shares are up practically 10% this yr. Dell “The strength of AI server orders, backlog, pipeline, and expanding CSP/enterprise [cloud service provider] customer base show DELL’s AI story is early days and gaining momentum. … Guidance suggests margins will be pressured Y/Y, but we believe mgmt’s rev/EPS outlook is conservative; our FY25 EPS is 3% above the high-end of the guide. Further momentum in the AI server narrative, PCs inflecting to growth and S & P 500 inclusion remain key upcoming catalysts.” Apple “We believe Apple will slightly beat Mar Q ests, but guide to June Q revs/implied EPS 4-7% below Street. At $165, this appears priced in but in today’s volatile market, it’s a tricky setup. That said, with Apple’s biggest WWDC ever on June 10th, we’d buy post-earnings weakness. Remain OW; $210 PT.” Fortinet “Nearing the Trough, Poised to Accelerate in 2H. … Net, we see upside to Q1 estimates and remain confident in 2H topline acceleration. … Our partner conversations indicated more stability in overall demand after a turbulent 2H’23. … With growing regulatory tailwinds around securing critical infrastructure, demand for Fortinet OT [operational technology] security ( > 10% of bookings) remains strong.” Nvidia “NVDA continues to see strong spending trends in AI, with upward revisions in demand from some of the newer customers such as Tesla and various sovereigns. … We expect a beat to consensus for the April quarter and strong guidance, setting the stage for another series of positive EPS revisions. … We believe that NVIDIA should trade at a premium given its higher probability of upward revisions in the near term.” Keysight Applied sciences “Within the T & M space, we believe KEYS is best positioned to capitalize on the AI / ML tailwind given exposures across various layers of networks including physical, protocol, and application. … The company has broadest set of customers across semi, componentry, traditional networking & hyperscalers, which combined with their depth of portfolio, should make them a share gainer in AI. … We remain OW KEYS as we believe valuation today fails to credit double-digit earnings growth story & defensive end-market exposures.”
