Nvidia, Apple, Oracle: How to navigate tech sluggishness

Tech stock seeing sharp declines to start September the NASDAQ Composite shedding about 5% so far this month and some of the worst performers are Nvidia and apple we're looking at how to navigate the big picture with the Yahoo finance Playbook Dan flax newberger Burman senior research analyst is joining us now Dan it's good to see you uh those two names among others are still among your top picks and you know obviously we've had some volatility come into the tech trade um there are different stories with the two of them let's start with apple since we just had the event yesterday we had the EU tax ruling this morning why you sticking with that one good to see you I think what's going on with apple is that they're demonstrating that they can continue to innovate we we see with iPhone 16 the the the camera control Apple intelligence uh the journey around that is beginning that'll play out over many months but the user experience is continuing to change I think the developer Community remains healthy and what we'll see over the coming months is that uh growth should be a little little bit better you're seeing the installed base continue to increase China while while a concern uh Apple has continued to navigate that pretty well and so Services uh remains durable and the the the wearables opportunity in my view remains early and so I expect better growth over the next year which will contribute to stock price out performance in My View From current levels let me also get your take on Nvidia Dan you know one concern there I want to get your take on this is this idea that big Tech is going to start coming under some pressure uh from their investors to just kind of slow down this Rush of AI spending uh how what do you make of that concern Dan what could it mean for NVIDIA Brian excuse me Josh we're s we're sitting at a very interesting uh juncture here because you have the cloud vendors uh Amazon and and Microsoft um Google investing aggressively because they see Revenue growth opportunities in their core businesses and new opportunities around generative Ai and so they're spending aggressively there is some concern around the capacity but in my view they're going to be able to to absorb that uh as we think through the coming quarters and over the next year or two as far as uh Nvidia is concerned there's a little bit of a delay in in Blackwell their new platform but demand for Hopper remains healthy and and I think the key for NVIDIA is to continue uh to execute on its product Cycles what what's happening wi with uh artificial intelligence this really a whole host of new uh use cases if you think about the healthcare world uh drug Discovery uh studies around climate change in manufacturing you have uh digital Twins and so there are a lot of new opportunities for both the cloud companies as well as traditional Enterprises to to uh transform themselves over the next couple of years and Nvidia really sits at the heart of that opportunity so we continue to like that name appreciating of course that there is some near-term volatility Dan how quickly and at what magnitude are these companies going to have to start to um really show more profit directly tied to some of these this AI technology I I think for the traditional Cloud vendors uh they're seeing a revenue like Microsoft Azure in the billions of dollars today I think that will continue now clearly they're investing to drive that growth but if the market uh sees and the companies are demonstrating that they large Revenue pools to be captured in both the near and perhaps as importantly the medium and long term I think the market will be okay with that the the key for these companies is to drive growth in these newer areas while at the same time demonstrating that in the core the existing businesses uh things are healthy so if you think about the cloud businesses uh you're continuing to see a a a uh a shift towards the cloud and when we speak to Enterprise customers many of them are relatively early in their Journey part of what they're getting is that they're getting access like with generative AI to the newest tools and Technologies and so that's why they're going to the cloud in addition to the ability to to turn turn on the capacity like like flipping a light switch it's uh it's very quick and that that's a contrast with a lot of the traditional it infrastructure and so it's a journey and our focus is on the companies like in Nvidia that can innovate and really Empower their customers as we think about uh um the customer's ability to to capitalize on all this as we move into next year and Beyond Dan also want to get your take on Oracle Larry Ellison's company reports investors clearly like what they see Dan the stock up about 12% right now what did you make of that print Dan and also just your take on the broader business software landscape uh the results were solid oracles demonstrating that that they're really able to to invest and drive growth in the Oracle cloud and and when we speak to their customers they like what Oracle is is doing as they extend um uh their their ability to deliver value uh for their workloads in the different clouds we saw the Amazon web services announcement last night so Oracle customers are are liking the fact that you can continue to uh run workloads on premise but also move into the cloud I think the growth for Oracle cloud is likely to remain robust over the next few years it's certainly lumpy quarter to quarter but the company's investing customers are seeing results um from from uh migrating to the cloud and I think it sets the company up well as as I look out into next year so we continue to like that name as well all right you WI a lot of investors Dan thank you so much to always coming on the show appreciate it thank you