July kicks off with a mix of seasonal strength and election-year caution, leaving investors to weigh fresh opportunities in technology stocks. Popular creator Mark Roussin points to Broadcom, Nvidia, Netflix, Microsoft, and Booking Holdings as picks tied to durable trends like AI, cloud, and digital entertainment.
Broadcom (AVGO) is highlighted as a diversified AI play through custom chips, networking, and infrastructure software. Revenue grew 24% last year, and free cash flow exceeded $27 billion. Analysts see a 12-month target around $524, implying over 40% upside.
Nvidia (NVDA) remains the backbone of AI infrastructure. Demand for Blackwell and upcoming Vera Rubin chips is robust, and even at a forward earnings multiple of about 19, Roussin calls it cheap given nearly 60% growth in revenue, EBITDA, and earnings. The average analyst target sits near $300, roughly 50% above recent levels. Separately, analysts maintain a Strong Buy consensus with targets around $309, and China Renaissance initiated coverage with a $319 price target.
Netflix (NFLX) benefits from ads, password crackdowns, and international expansion, while Microsoft (MSFT) rides Azure's 40% growth and deep AI integration. Booking Holdings (BKNG) offers exposure to resilient travel demand and a light-asset model enhanced by AI.
Meanwhile, Alphabet, Amazon, and Nvidia enter July with their own catalysts. Alphabet's cloud revenue jumped 63% year-on-year to $20 billion, accelerating past AWS and Azure growth rates. Fund manager Dan Niles calls Google his favorite Magnificent Seven name due to its "full AI stack." Amazon's AWS raised prices on GPU capacity blocks effective July 1, a move Wall Street treated as proof that AI compute demand still outstrips supply. AWS revenue hit $37.6 billion in Q1 with a backlog of $364 billion. CEO Andy Jassy touts the custom Trainium chip as a margin booster. Wells Fargo maintains a Buy and $312 target. Nvidia remains the common infrastructure provider across all AI builders, with the next Vera Rubin cycle expected to sustain its lead.
Broader markets were buoyed by an easing of U.S.-Iran tensions and a JOLTS report showing 7.59 million job openings, though higher Treasury yields and a strong dollar added macro complexity.
