Full Video Transcript Below:

CAROLINE WOODS: OK, so it could be a bumpy ride to 6600. Then what would you buy on a pullback, and what would you buy regardless if we see a pullback or not?

ART HOGAN: Yeah, I don’t think this sort of weak September or the normal 5% to 10% pullbacks should change your long-term investment views and positioning. But if you are under-allocated to equities right now because you’ve been nervous about all sorts of things this year, it will give you that opportunity to have an entry point.

We certainly think the three things you want to think about are the winners in artificial intelligence—they’re clearly starting to emerge. And it’s not just NVIDIA anymore. Companies like Broadcom are showing that they can do well. But I think the biggest name giving the best entry point right now is Apple, and I’ll tell you why. Three quick reasons. The alphabet soup that just got thrown out of court means that Alphabet can continue to pay Apple to be their default browser on 2 billion Apple devices. That also means Apple doesn’t need to spend a lot of money developing their own large language models. And they can partner with somebody like Alphabet to enhance what they’re doing with Siri. Then there’s going to be a massive rollout at the end of the week of new Apple products. Probably the best thing I can tell you is, if you’ve missed a lot of these great moves that are AI-adjacent, any pullback in September might be a great time to get involved.

CAROLINE WOODS: OK, so you said three names. I heard Apple, which of course is down, what, still 5% year-to-date. What are the other two names?

ART HOGAN: Yeah, NVIDIA is down 20% off from its recent high. I certainly think that represents an opportunity. Every time NVIDIA pulls back, people start to get concerned about either competition or CapEx spend slowing. Neither one has shown itself. NVIDIA likely gets a license for the H20 to sell them to China, which right off the top would be another $5 billion.

The third name I’ll throw in here is going to come out of the blue a little bit—TJX, which is TJ Maxx and Marshalls. It’s the biggest beneficiary right now of this consumer uncertainty. Folks love the treasure hunt that is TJX. TJX isn’t over-indexed to imported goods and continues to outshine the rest of the discounters.