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Pro Picks: Beyond Nvidia with Shane Obata’s Top 3 Tech Trades

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AI has driven tech stocks to new heights — but are we starting to see cracks in the story? Amber Kanwar sits down with Shane Obata of Middlefield to find out whether the AI trade is running out of steam or just gearing up for its next phase. From Nvidia’s dominance to rising capital costs across the sector, Shane explains where investors should stay cautious and where the next wave of profits could come from — and why, in this market, all roads still lead to OpenAI.

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Samsung Electronics (SSNLF)
Current performance has seen the stock rise nearly 100% this year. The memory market remains in a significant supply crunch, driven by high-bandwidth memory (HBM) demand for AI GPUs, which is tightening overall DRAM availability. Samsung’s semiconductor business is heavily exposed to memory, with strong earnings potential in conventional DRAM used in servers and other applications. NAND supply is also constrained, as hard disk drives (HDDs) are sold out through 2027, pushing demand toward more expensive solid-state drives (SSDs).

  • Fiscal 2026 EPS estimates have increased 25% over the past three months, with memory prices rising daily due to tight supply-demand dynamics.
  • The stock trades at approximately 13x fiscal 2026 EPS of ~11,000 Korean Won.
  • Price target: 143,000 KRW, representing 40% upside.

Take-Two Interactive (TTWO)

The core business is performing strongly, led by the 2K basketball series and mobile operations. Grand Theft Auto 6 has been delayed to November 2026, but the company is using the additional time to refine the title, which is expected to become one of the largest entertainment launches in history.

  • The delay allows for enhanced product quality, while current franchises continue to drive revenue and profitability.
  • Fiscal 2028 EPS is projected at $12.68, reflecting a full year of GTA 6 contribution.
  • At a 25x multiple, the price target is $317 from a current level near $240, indicating 35% upside.

Alibaba Group (BABA)

A shift in China’s regulatory environment has created a more supportive backdrop for domestic technology leaders. Alibaba is positioned as a key cloud and AI player, with its cloud business accelerating despite representing a smaller portion of overall revenue compared to e-commerce. The company is developing open-source AI models, in-house chips, and a full-stack cloud offering.

  • Fiscal 2027 EPS is estimated at $10.60.
  • Applying a 21x multiple yields a price target of $218 from the current ~$160 level.
  • This represents 36% upside, with potential for further gains if cloud growth exceeds expectations.

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