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It's time now for today's strategy session. US stocks opening in the red this morning with tech leading the losses here. Options data showing investors are positioning for further losses in mega cap tech and semis ahead of earnings. That's according to data from Bloomberg. Joining us now with more, David Harden, Summit Global Investments CIO. David, great to speak with you this morning. Certainly a lot of pain for the big tech names this morning.

Thank you.

Are you buying big tech at these levels?

Well, I think there's some definitely buying opportunities that are coming available. For example, one of the things that I like is Google. Google has $25 billion in free cash flows last quarter. It's it's it's growing at double digits year-over-year. Its profit margins are great. Its return on equity is around 30%. And the PE is now finally getting down into those reasonable levels you can consider 16, 17, 15. So I think I think these are buying opportunities to start accumulating more positions in something like a Google.

I think what you're highlighting is the, you know, this one thing is not like the other in the tech trade even as you're looking at what is more of a platform play where there's perhaps more of a reason to believe that the consumers would flow into free products that a Google might offer online versus what we're seeing in some of the products and propensity to spend in some of the other tech plays where there might be a consumer pullback in those discretionary dollars. How do you continue to look across these companies once we get into earnings and see how they're forecasting and guiding for the rest of the year on that?

Yeah, I think that's really important because where did their earnings come from, right? And and how are they tied to tariffs? That's really important. And how does those tariffs impact like advertising for Google. So you want to look kind of through those earnings into the consumer and and see what that consumer's doing and how that consumer's acting. And I think that's another play in tech. There is a separation. What? Are they hardware? Like Apple's had to navigate a lot more tariff news than Google's had to navigate, even though they're both navigating it.

And we're starting to see individual companies being used as tools in this trade war. Obviously with Nvidia's specific chips being impacted by export controls, to what extent does that change any fundamental view you have on these stocks or should investors look past any of that daily headline news on tariffs?

I I I think absolutely, you have to consider that and you have to manage your your risk here. Risk is really, really important in these markets and managing that is essential. So where you have the H20 chip, for example, invidia, they have clearly shown last night on their earnings that they have a difficult time more difficult time than some of these other tech names. So look for tech names that are more US based. Look for tech names that have more um say high-quality earnings. Even though somebody could question Google's high quality earnings, their earnings scores are not very good, but it is more US based. It is more consumer based in the US. And so that's very, very important in tech.

It seems like we've all been asking the question of what's the next big catalyst to drive conviction within the markets. Does that mean the AI trade or the fast-paced growth cycle for the AI trade is dead?

No, I don't think so because let's face it. Probably 10 minutes ago you were looking at AI, or I was looking at AI, or somebody was looking at some agent and the and the new things that are coming out with AI agents and things of this nature are absolutely impactful. The power of AI is growing. It's not shrinking. We're using it more. And it will continue to spread. So I think that trade's not done. I think there'll continue to be infrastructure build outs and AI things, but it has to go past just the technology. You have to look into the in industrial side of tech and where are they putting and building these centers at.

I want to get to one of your cells, but first really quickly, would you buy Nvidia at these levels?

Uh probably not right now. No. I would be if you're if you're in it, it's time to hold and be patient. But if you're looking to buy, I think there's better opportunities to buy.

And I know one of them is Microsoft, correct?

I if you're looking at the two comparison, yes, Microsoft today, Nvidia's down more 6-7%, Microsoft's down in one, one and a half right now. I I think that's a safer play. It's a little bit more if if you will ingrained in our society. The revenues are are more um consistent. And so that's something that I would look at is more something like a Google or Microsoft. Both of those I would consider buying opportunities, especially at these levels.

And I know a sell for you is one member of the mag 7. Talk to us about Tesla.

Well, I think Tesla's had some negative earnings. We know that and um it's under pressure. I think every Tesla's uh I I saw a sticker on the back of a Tesla the other day that said something like, I bought this post crazy. So this is this is very, very important right now in our society. But having said that, I think Elon Musk is going to tell you when it's the right time to buy Tesla. And he hasn't done that yet. So he he's outspoken. We know what he's capable of. And until he's ready to let us know it's the right time to buy, I think it's you avoid that stock right now.

Outside of tech, where's your favorite trade, your top idea right now?

And I think I think outside of tech, you're going to have to look at some of the healthcare companies that have really been hurt with the Pharmatech news and other things.

It seems like they're next though in the docket for what potential tariffs may look like.

Oh, absolutely. So look for those healthcare companies that are not necessarily tied to pharma and they get their revenue, surgical centers and other places that are hospital-based, that are US-based, that we are going to use on a daily basis, but really are not tied to that. Those are the ones that have been kind of the baby been thrown out with the bath water. Their their valuations are very good right now.

Absolutely. David, great to see you here in studio. Thanks for taking the time with us this morning.

Thank you.

Absolutely.