Portfolio managers will continue to bet on chip stocks for years - Trivariate Research’s Adam Parker

[Historic buildings of Wall Street in the financial district of lower Manhattan, New York City]
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Adam Parker, founder and CEO of Trivariate Research, expressed optimism about the market despite some pressure on Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) ahead of its earnings report.

In an interview with CNBC, Parker noted that while short interest in Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) is at its highest since June – approximately 192.12M shares, or about 0.82% of its float – and Goldman Sachs appears less bullish than in previous quarters, he maintains a positive outlook on tech stocks.

Parker highlighted expectations for numerous IPOs (IPO [https://seekingalpha.com/symbol/IPO]) in the coming weeks, suggesting continued positive market activity. He added that most institutional investors would return the following week to gather Q3 data points and assess market progress.

Despite September’s reputation for poor market performance, Parker doesn’t anticipate a significant sell-off without major policy changes. “Everybody I know who runs a lot of money wants to buy high quality U.S. equities if they go down 15% for the specter of productivity in ‘26 and ‘27,” he stated, noting that companies aren’t indicating substantial slowdowns in their reporting.

He also emphasized the growing dominance of growth stocks (SPYG [https://seekingalpha.com/symbol/SPYG]), (SCHG [https://seekingalpha.com/symbol/SCHG]) in the market, particularly in technology. According to Parker, “77% of the mega cap universe market cap is growth, 3% is value,” representing a significant shift from historical distributions.

He identified AI semiconductors (PSI [https://seekingalpha.com/symbol/PSI]), (SMH [https://seekingalpha.com/symbol/SMH]), (SOXX [https://seekingalpha.com/symbol/SOXX]), compute infrastructure, power, and select software (IGPT [https://seekingalpha.com/symbol/IGPT]), (XSW [https://seekingalpha.com/symbol/XSW]), (ARKW [https://seekingalpha.com/symbol/ARKW]) as key investment themes that would remain intact regardless of short-term market fluctuations.

Parker described the S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500]) as “a superior asset class” with significant resilience, pointing out that the index regularly replaces underperforming companies. He concluded that the bull case for U.S. equities remains strong if margins expand due to AI infrastructure investments and if the Federal Reserve maintains a relatively accommodative policy, making it difficult to justify shorting U.S. equities under these conditions.

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