Investment Insights from CNBC’s Halftime Report
On CNBC’s “Halftime Report,” investors Steve Weiss and Kevin Simpson discussed their current investment strategies amidst ongoing concerns about AI’s impact on the market. Weiss shared that he recently sold his shares in Nvidia, a prominent player in the tech sector. He expressed worry about the rising competition from other major companies like Meta, Microsoft, Google, and Amazon, which are now entering the chip manufacturing space. “The stock is hovering around the $180, $190 range. I think it will go up over time, but I think it will stay there in the short term,” Weiss remarked.
Additionally, he decided to sell Amazon shares as well. While he acknowledges that the company’s capital spending plans are sound and likely to yield positive returns, he’s uneasy about how potential disruptions from AI in the labor market might impact stock performance. Amazon’s shares have dropped over 9% since the start of the year.
On a more optimistic note, Weiss increased his investment in Warner Bros. Discovery after Netflix backed out of its acquisition plans. He believes that with this deal falling through, streaming companies will have more resources to invest in original content, positioning them better for future growth. Following the termination of the contract, Netflix’s stock surged nearly 22%.
Simpson, on the other hand, picked up shares of Apple, believing that its stock would remain resilient against AI capital spending concerns since Apple has fewer investments in the sector compared to its competition. He noted the fruitful partnership between Apple and Google on Siri, suggesting, “How many years have we been sitting here saying that one day we’ll learn to use Siri properly? I think this year is the year that will bear fruit.” Apple’s shares have declined about 2% this year.
Moreover, Simpson saw an opportunity with Microsoft, considering its stock was undervalued. The company’s shares have dropped nearly 19% this year. Lastly, he invested in Norfolk Southern, citing the company’s robust financial position and reduction in capital spending as promising signs. He mentioned that if the merger with Union Pacific goes ahead, it could pave the way for significant growth: “This may not be something that can be replaced by AI. They’re not going to go out there and build rail.”
