Some Wall Street investors may be cautious on the technology right now, especially after the collapse of Silicon Valley Bank. But others are viewing the volatility as an opportunity to offload some tech stocks. After rallying at the start of the year, the Nasdaq Composite has fallen more than 5% in the past month. Morgan Stanley named it its top pick in tech in a March 13 note. Here’s what the bank’s analysts, including top strategists like Mike Wilson, write about three of them. Advanced Micro Devices Morgan Stanley said it has a long preference for buying semiconductor stocks at a point in the cycle when “companies are driving end-market demand and visibility is low.” That means Advanced Micro Devices is a buy, according to the bank, which has “targeted” half of the firm’s business under that scenario, with a recovery expected to come in the second half of 2023. “The other half of the company’s business, its data center compute products, are set up to capture significant share in one of the best end-markets in semiconductors, giving the company an edge against peers despite potential customer budget cuts.” Standing helps,” the bank’s analysts wrote. Morgan Stanley assigned an overweight rating to AMD, and a price target of $87 — a level the stock reached on March 14. ServiceNow cloud services company ServiceNow is one of the “best secularly positioned” names in software, according to Morgan Stanley. Companies are prioritizing “digital transformation” in their IT spending. “The combination of sustainable topline growth and operating efficiency makes Now our preferred top pick in the current environment,” the bank said. That gave ServiceNow a price target of $612, or up about 44%. Morgan Stanley sees Amazon best positioned as a large-cap Internet name with “sustainable retail revenue growth and impacting retail profitability.” The bank said that the company’s business may pick up again in August, improving margins. Analysts said Amazon is currently trading at a 55% discount to its historical average. That gave Amazon a $150 price target, or roughly 60% upside. — CNBC’s Michael Bloom contributed to this report.
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