Big Tech names like Nvidia (NVDA) continue to make gains, sending the Nasdaq (^IXIC) soaring. Nvidia alone is up almost 165% year-to-date.

Deepwater Asset Management Managing Partner Doug Clinton joins Market Domination to share his playbook for investors wanting to incorporate Big Tech into their portfolios and which lesser known stocks they should keep an eye on.

Clinton elaborates on one of his hidden gem picks for tech: "We still like Arista (ANET). And it actually had a great week last week on top of those Broadcom (AVGO) earnings. Broadcom talked about strong networking demands. And they actually upped their networking revenue guidance on the reality that there is strong demand for Ethernet based products in AI data centers. Arista has built their portfolio around Ethernet. And so I think they stand to be a good beneficiary of that trend that we're seeing from Broadcom."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino

Video Transcript

Tech is on a hot streak as we have discussed frequently, the NASDAQ composite hitting Intraday highs after notching a perfect week in Friday session, five straight record closes while Tech Giant Apple maintains its weekly streak of gains as well.

We're looking at how to navigate the big picture with the Yahoo Finance playbook and Doug Clinton, managing partner, Deepwater Asset Management is joining us now to discuss Doug, it's good to see you and we continue to see these sort of mega cap tech giants continuing to climb here.

I know that you watch them closely, but you also watch a lot of the sort of ones that maybe we don't talk about every day.

So just big picture here.

Are you feeling like things are getting overstretched or do you feel like there is a lot more upside?

We do still feel that there's more upside.

And the bottom line for us, Julie is we still think we're in the relatively early innings of this A I driven Bull market.

It may feel like we're late in the cycle here and we actually just did a survey of 1300 people on X, almost 90% of respondents either said they think we're already in a bubble that's about to keep going or crash or that we're not in a bubble yet, we're going to get one.

And so the bottom line is, it feels like the market is really attuned to the realities of A I right now.

And our view is that it is still early.

The way to position yourself for it though is I think where you can kind of add alpha and prepare your portfolio properly.

What we like to do in deep water is invest in both the public and private markets.

On the public side, we really like the hardware space.

It's been the outperforming space, the best performing space of the year.

We still think there's a lot of room to go in terms of A I infrastructure spend that's still to come on the private side.

That's where we're getting our A I software exposure because that's where the pure play A I companies like a data bricks like a hugging face.

Uh and like Xa I, which we just recently invested in a deep water.

That's where you can find those types of investments.

And hey, Doug, you know, in, in the public markets, these some of these A I hardware names, Doug, you know, Aisa, it's had such a, you know, that's had a strong run away.

Doug, would you be, would you be adding there or, or maybe waiting for a pullback at this point?

We do own Aisa.

Josh, we still like Aisa and it actually had a great week last week on top of those Broadcom earnings, Broadcom talked about strong networking demands and they actually upped their networking revenue guidance on the, the reality that there is strong demand for Ethernet based products in A I data centers, a risk that has built their portfolio around Ethernet.

And so I think they stand to be a good beneficiary of that trend that we're seeing from Broadcom.

Um and also you, you know, what strikes me as I looked at, at your various picks, whether you're talking about Arria or some of the memory chip makers like an SK he like a Mikron, is that for lack of a better word, they're sort of the less sexy areas that in other words, they haven't gotten as much attention, right?

Um during this whole situation, does that mean was, I mean, the the stocks have still done well?

But do you think that they maybe are more attractively valued than some of those that are getting more attention?

I think some are and I think what's even beyond that is to think about kind of what's been priced in so far?

You look at a stock like NVIDIA, obviously, they've had incredible earnings growth that has supported how that stock has moved.

Um I think companies like an ERISA Verta is another name that we like that does liquid cooling solutions.

I think those are stocks that actually still have upside to numbers.

And that's really what we're trying to find as we look beyond the big cat names, like the NVIDIA, like the broad Coms.

We want to see that there's still potential that hasn't been fully recognized yet by the market.

And I think that makes these stocks actually probably cheaper than they might appear if you just look at the numbers and Doug, you know, I, I haven't had the chance to talk to you since Apple's big software show.

I'm, I'm curious to get your take Doug because you know, the narrative there heading into the show, I mean, at least in some quarters as well.

You know, Apple's falling behind in this A I race and, and, and Tim Cook obviously tried to take the stage and really kind of change that narrative change.

That story.

Doug.

Do you think he did it?

There's two sides to it.

Yeah, it's hard because if you're an A I nerd like me, you probably weren't blown away.

We didn't see anything from Apple if you're really closely following the A I space that we haven't really seen before from Google from open A I. Um And so I wasn't blown away, but what I think is important, more important is that the average Apple customer, the person who doesn't care about chat GP T maybe doesn't even use it on any regular basis.

I think they probably saw some features for example, a Siri that might actually just work for once.

I think that that is a big deal for the average Apple customer when you think about customers that need to upgrade and really drive device growth where we haven't seen that device growth from Apple for the last kind of 18 months or so.

I think those are the customers that matter and I think Apple probably did enough with A I to excite them to come and get a new iphone over the next year or two with these A I features.

So were you one of the folks buying Apple shares, sort of the day after the beginning of the presentation?

As the, as we saw the stock surge to a new record, I couldn't speak to, to kind of recent trading activity for us.

But what I would tell you is this on the large cap side for this whole year?

Really Google and Meta have been our two favored names and the reason is because they both are leaders in the A I generative model space.

I think there's only four companies really that have a chance at creating artificial general intelligence and sort of winning the A I race.

It's open A I, it's Google, it's Meta and it's Xa I Elon's company that as I mentioned, Deepwater did actually invest in that one as well.

We think that's a good space to deploy capital too well, and that I think that's a really interesting point because a lot of people don't necessarily have access to, you know, you talk about that on the software side in A I, a lot of the exciting stuff is happening with still private companies.

So what can people who maybe don't have access to those raises?

How can they get access or as you brought up earlier?

Is it better to sort of play on the vendors maybe to those companies?

I think that's the easy answer is you want to probably look back to some of those hardware companies uh and maybe wait until some of these A I companies come public or if you do have access, if you have a vendor that you can work with, to get access to private markets, that might be something worth exploring too.

But I think the easiest path is and I do think the window is open right now for a lot of these A I companies is probably to wait for them to come public.

And I do expect we'll see some of that happening over the next 6 to 12 months.

Doug always great to have you on the show.

Thanks for coming on, my friend.

Thanks, Josh.

Thanks Julie.