ETFs
These ETFs Hold the Best Ideas for the Second Half of 2024
This article was originally published on ETFTrends.com.
Friday marks the end of the second quarter and the close of the first half of the year. That means it’s time for investors to reflect on what worked in the first six months and strategize for the second half. Some of those answers might be the same.
For example, as of June 27, the Nasdaq-100 Index (NDX) was up 17.9% year-to-date, a 220 basis point advantage over the S&P 500. That’s good news for the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM)popular exchange traded funds tracking the NDX.
Much of the optimism QQQ and QQQM accumulated in the first half was attributable to Nvidia (NVDA) – the third-largest ETF asset. As of June 27, shares of the semiconductor giant are up 150.37% year-to-date. The stock could continue to climb in the second half of the year, or it could slow down. For investors eyeing QQQ and QQQM as second-half ideas, the good news is that some analysts believe other members of the ETF list could be winners through the end of the year.
It’s not Nvidia, but other NDX names could shine
Rosenblatt Securities recently unveiled its top 10 stock ideas for the second half of 2024. Nvidia didn’t make the cut, but several other QQQ/QQQM holdings were included, including: Advanced Micro Devices (AMD) And Apple (AAPL)These two stocks together represent more than 10% of QQQ/QQQM portfolios.
Rosenblatt Analyst Hans Mosesmann is constructive on AMD not because the company can surpass rival Nvidia in artificial intelligence (AI) chip market share, but because AMD can grab enough AI market share to propel the stock higher.
AMD can “potentially gain accelerator share over the next couple of years, a better-than-expected MI3xx lineup heading into 2025, continued CPU share gains (yes, that was a few years ago) versus Intel, and a broader non-AI recovery coming out of 2025,” the analyst wrote.
Rosenblatt’s Barton Crockett is bullish on Apple, the second-largest holding in Invesco ETFs. The analyst has set a $260 price target on the stock and sees the recent iPhone 12 reboot as a catalyst.
“This led to a 39% increase in iPhone sales in FY21 as consumers rushed to upgrade to 5G-enabled devices. If AI smartphone adoption becomes a similar driver to platform change, our new estimate of 15% AI-powered growth for iPhone in FY2026E appears reasonable, following a slow acceleration in FY2025E,” Crockett noted.
Micron Technology (MU) And Crowdstrike Holdings (CRWD)both owned by QQQ and QQQM, are also among Rosenblatt’s best ideas for the second half.
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