With the Magnificent Seven controlling nearly 30% of the S&P 500's value, the tech sector may feel crowded out. However, there are other value-based tech picks that investors may be overlooking.
The Futurum Group Chief Market Strategist Cory Johnson and Deepwater Asset Management Managing Partner Doug Clinton join Yahoo Finance to discuss hidden gem stocks within tech.
Johnson explains that investors may need to reframe their investments in tech beyond growth: "We've seen tech as growth and indeed a lot of tech companies without profits are hard to value as value stocks, but I think a lot of that has changed over time and we've seen the king of all value investors Warren Buffett with his giant holdings in Apple (AAPL) and in this notion that technology can't be valued is just wrong, and then there's timing and that's when investors have to think about what they're investing for and what kinds of returns and when they need them and to understand if it's worth a long wait."
Clinton emphasizes that it may be important to look downstream of tech giants. SK Hynix (000660.KS), he points out, is a provider of tech to Nvidia: "Nvidia uses the Hynix's high bandwidth memory in their chips that are in huge demand right now from hyper-scalers and now potentially sovereign nations and other industrial companies that are building their AI infrastructure, so we see Hynix which a holding in our Deepwater Frontier Tech index, that powers the Loup ETF (LOUP) –– we see Hynix as a potential beneficiary of continued demand for those Nvidia chips. "
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