Bank of America recently highlighted Apple as a top buying opportunity in the technology sector. The investment bank raised its price target on the tech giant to $256 from $230, citing a strong performance ahead of the next iPhone cycle. Analyst Wamsi Mohan emphasized that Apple is firing on all cylinders, especially with the anticipated release of products containing AI features. The bank’s research indicates that there is a high level of brand loyalty among Apple users, with many planning to upgrade to the latest offerings. With an expected multi-year iPhone cycle, strong services growth, and margin expansion, Apple remains a solid buy in the eyes of Bank of America.
Shopify
Another stock recommended by Bank of America is Shopify, a Canadian provider of websites for businesses. Analyst Brad Sills upgraded Shopify to a buy rating from neutral, highlighting a more balanced growth and margin profile. Sills noted that the company’s transformation under a new CFO is already underway, with promising revenue growth and disciplined spending. Shopify’s competitive advantages position it well to capture a significant share of the eCommerce market and achieve better scale and cash flow conversion. Despite being down 23% in the U.S. this year, Bank of America sees potential for big share gains in the future.
Bank of America also sees value in Sea Limited, a Singapore-based tech internet company. Despite a 61% increase in share price this year, analyst Sachin Salgaonkar believes there is still more upside potential. The company’s gaming and e-commerce divisions are showing improvement, particularly in the Southeast Asia market. Salgaonkar highlighted Sea’s dominant online marketplace, Shopee, as a key driver of growth, especially with its expansion into Brazil. While acknowledging the real competition in the industry, Bank of America reiterated its buy rating for Sea Limited, urging long-term ownership for clients.
The investment bank is also bullish on Micron Technology, emphasizing the company’s focus on AI, pricing, and mix improvement opportunities. Bank of America hosted key Micron executives for investor meetings, where the message was very bullish regarding pricing, visibility, supply discipline, and product mix. With a strong growth outlook in AI computing and enterprise storage products, Micron is poised for success in the tech sector.
Lastly, Bank of America highlighted Microsoft as a stock with sustained growth potential in the coming years. The company’s Azure cloud infrastructure platform, Office 365 productivity suite, and Xbox gaming segment are all expected to contribute to low double-digit growth. The bank sees Microsoft as well-positioned to capitalize on the increasing adoption of cloud-based services and profitable revenue streams in the gaming industry.
Bank of America’s recent research points to several promising investment opportunities in the technology sector. Stocks like Apple, Shopify, Sea Limited, Micron Technology, and Microsoft offer investors a chance to capitalize on the evolving tech landscape. With strong growth prospects, competitive advantages, and innovative product offerings, these companies stand out as top picks in a dynamic market environment.
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