The second half of the year is underway, and investor Andrew Graham thinks technology stocks will continue to lead the market higher. The S & P 500 has climbed 15% in 2024 to record highs, propelled by the artificial intelligence trade. Year to date, graphics processing unit manufacturer Nvidia has soared a whopping 148%.
Investors have debated whether technology stocks can sustain their lofty gains, or if the market rally is due to broaden. But Graham, founder and managing partner of Jackson Square Capital — which manages around $500 million in assets — said that this tech revolution can build on its momentum. "I don't think this should be downplayed," he told CNBC in an interview Monday.
Graham said he is heavily invested in the artificial intelligence theme, with technology making up his biggest overweight position. The investor likes semiconductor names such as Nvidia and Micron , which he said should benefit from the ongoing memory cycle. "Micron has more upside, and is really going to shock people in terms of earnings power," he said.
Micron shares are up 55% year to date. MU YTD mountain MU year to date Outside of tech, Graham favors industrials, which are adjacent to the AI theme. The investor listed Vertiv and Eaton as top picks for their exposure to cooling systems for data centers.
Other tech- and industrial-adjacent names Graham is bullish on include Arista , Dell , Coherent , AT & T , Arm Holdings and Broadcom . The portfolio manager also has positions in Nex.