The panorama for tech has turned decidedly extra bullish after a tricky 2022 which noticed the Nasdaq Composite tumble over 33% amid aggressive rate of interest hikes. Now up 9.7% year-to-date, the Nasdaq is the best-performing main U.S. index this 12 months. However the path of rate of interest hikes stays unsure amid stubbornly excessive inflation and the persevering with power of the U.S. shopper, whereas the prospect of a recession persists within the minds of buyers. Towards this backdrop, tech investor Mark Hawtin believes Apple could possibly be a safer wager inside the mega-cap house. “I believe the result for Apple relies upon actually on the view you’re taking in regards to the macro. I believe if the macro stays unsure, then Apple stays inventory to carry, as a result of it supplies certainty in an unsure setting. It is the type of high-quality, low-growth however dependable title inside these large cap shares,” Hawtin, funding director at GAM Investments, informed CNBC Professional Talks on Wednesday. Earlier this month, Apple r eported earnings for the vacation quarter that missed Wall Avenue expectations on income, revenue, and gross sales for a lot of of its strains of enterprise. It marked a uncommon earnings miss by the tech big, its first in virtually seven years. Apple’s well-documented provide chain disruptions contributed to the miss, with fewer iPhone 14 Professional and iPhone 14 Max fashions obtainable on the market on the again of a Covid-induced shutdown of a key meeting plant in China. Manufacturing is, nevertheless, now again to ranges the corporate is comfy with, in keeping with Apple CEO Tim Cook dinner. “I believe [Apple] will at all times overcome the provision chain obstacles ultimately. It is an enormous firm. It has a really dominant place. It’s extremely highly effective when it comes to securing its provide chain. So that does not fear me,” Hawtin stated. A Berkshire favourite Warren Buffett can also be a fan of Apple; the corporate is the most important wager amongst Berkshire Hathaway’s reported holdings. Berkshire purchased an additional 20.8 million Apple shares value $3.2 billion final quarter, elevating its stake to five.8%, in keeping with a regulatory submitting. The transfer seems to have paid off for Berkshire, with shares of Apple up about 18% this 12 months. Analysts suppose the inventory might go greater, with about 78% of these overlaying the inventory ranking it a “purchase” and giving it common upside of round 15%.
'High-quality' and 'reliable': Investor says Apple is a good stock for a volatile market