CNBC’s Halftime Report: “The Surging Tech Trade” – June 10, 2025
Hosted by CNBC’s Scott Wapner, the June 10, 2025 episode of Halftime Report delves deep into the remarkable resurgence of the technology sector. Featuring insights from top investors Brenda Vingelo, Malcolm Etheridge, Alex Cantowicz, Christina Partsinevelos, Steve Kovac, and analyst Eric Woodring, the episode explores the factors driving the tech trade, key stock performances, and future market outlooks.
1. Introduction and Market Overview
Scott Wapner opens the episode from One Market in San Francisco, highlighting the significant uptick in the technology sector over the past month. The S&P 500 and NASDAQ have surged five of the past six days, nearing new all-time highs.
Notable Quote:
“The surging tech trade... the sector up big over the past month and that has sent stocks within spitting distance of a new all-time high.”
— Scott Wapner [00:59]
2. Technology Sector Resurgence
Malcolm Etheridge discusses the tech sector's strong performance, noting that it was a laggard in the first quarter but has rebounded due to robust corporate earnings and continued investment in AI.
Notable Quote:
“Corporate earnings were fantastic for the group... and the group continues to be a leader, a projected leader for next quarter in terms of overall revenue growth.”
— Malcolm Etheridge [02:13]
Alex Cantowicz adds a note of caution regarding high valuations but remains optimistic about the sector's momentum.
Notable Quote:
“We should at least be cautiously optimistic. But I definitely understand that the momentum is on the side of pushing past those February highs.”
— Alex Cantowicz [03:10]
3. Key Drivers: AI Investments and Corporate Earnings
Christina Partsinevelos highlights the pivotal role of AI in driving the tech resurgence, citing increased enterprise deployment and substantial infrastructure demand.
Notable Quote:
“Enterprise AI adoption surged this year but still remains below 10%. So it's still early and that is where the upside is for investors.”
— Christina Partsinevelos [04:56]
Steve Kovac emphasizes the strategic partnerships among tech giants, fostering an environment of rapid innovation and collaboration despite rivalries.
Notable Quote:
“Silicon Valley is all about frenemies... you have to work with your rivals. And if you do, it's sort of like may the best technology win.”
— Steve Kovac [08:29]
4. Major Stocks Analysis
Alphabet and Meta (Facebook)
Malcolm Etheridge expresses concerns about Alphabet’s reliance on its traditional advertising-driven search model amidst its AI investments. In contrast, Meta is praised for its strategic AI investments and global expansion.
Notable Quotes:
“What happens to their traditional advertising-driven search model?”
— Malcolm Etheridge [09:40]“Meta is positioned to be a continued winner in this environment where traditional search is being disrupted.”
— Malcolm Etheridge [10:47]
Nvidia and Semiconductor Stocks
The episode underscores Nvidia's dominance in the AI infrastructure space, driving significant stock gains. Christina Partsinevelos elaborates on the positive momentum for semiconductor stocks, including Micron and TSMC.
Notable Quote:
“Nvidia is up more than 20% over the last month. A lot of that on inference, demand and sovereign AI.”
— Christina Partsinevelos [06:23]
Malcolm and Alex Cantowicz discuss the importance of maintaining exposure to key semiconductor players despite high expectations and rapid gains.
Notable Quote:
“This group has come a long way fast and the expectations are pretty high.”
— Malcolm Etheridge [06:50]
5. Analyst Insights and Market Sentiments
Eric Woodring of Morgan Stanley provides a critical perspective on Apple’s recent performance post-Worldwide Developers Conference (WWDC), emphasizing the market’s impatience for tangible AI advancements from the tech giant.
Notable Quote:
“What we didn't get at the developer conference was tangible signs of significant progress.”
— Eric Woodring [19:59]
Brenda Vingelo and Alex Cantowicz discuss potential investment opportunities in Apple, anticipating upcoming hardware innovations could reignite investor excitement.
Notable Quote:
“I'm probably on the cusp of a hardware event that is actually going to impress.”
— Alex Cantowicz [24:14]
6. Special Segments
Double Downgrades and Sector Impacts
Kate Rogers reports on Redburn’s rare double downgrade of McDonald's, citing concerns over GLP1 impacts and declining foot traffic, which also affect other chains like Domino's and KFC.
Notable Quote:
“Foot traffic declines are expected at lunch and dinner and will impact not only McDonald's but also other chains...”
— Kate Rogers [27:56]
Disruptor 50 List and AI Influence
Julia Boorstin discusses CNBC’s annual Disruptor 50 list, emphasizing the transformative impact of AI on the selected companies. This year's list features a significant increase in AI-centric firms, with defense tech company OpenAI leading the pack.
Notable Quote:
“AI has to be essential to your business. AI is the new technology.”
— Christina Partsinevelos [44:26]
7. Final Trades and Market Strategies
Malcolm Etheridge and Alex Cantowicz share their final trades, focusing on Apple and Alphabet. They highlight Apple’s resilience and the strategic advancements of Alphabet in consumer and enterprise AI sectors.
Notable Quote:
“Time to buy Apple.”
— Alex Cantowicz [46:06]
Steve Kovac adds:
“Alphabet bets in consumer AI bets on the enterprise side with Google Cloud.”
— Steve Kovac [46:24]
8. Conclusion and Future Outlook
As the episode wraps up, Scott Wapner previews upcoming discussions on AI-driven investing and the next wave of technological innovations. The consensus among guests is a cautiously optimistic outlook on the tech sector, driven by AI advancements and strategic corporate maneuvers.
Closing Remark:
“We're sticking with our position.”
— Malcolm Etheridge [31:29]
Key Takeaways:
- The technology sector is experiencing a robust resurgence, nearing new all-time highs.
- AI investments and strong corporate earnings are primary drivers behind the tech trade.
- Major tech stocks like Nvidia, Alphabet, and Apple remain focal points for investors, with nuanced views on their future trajectories.
- Analyst insights highlight both opportunities and caution, particularly regarding high valuations and market expectations.
- Strategic partnerships and innovation in AI continue to shape the competitive landscape, fostering both collaboration and rivalry among tech giants.
This comprehensive analysis from Halftime Report offers valuable perspectives for investors seeking to navigate the dynamic technology market landscape.