Investors may be buying momentum in some major tech stocks after this week’s market selloff, said Eddie Gabour, managing partner at Key Advisors Wealth Management. Stocks tumbled this week on concerns that the AI-powered bull market will be hurt by a slowing economy and historically high valuations. Data released Friday showed consumer sentiment near record lows amid concerns about a record U.S. government shutdown. The Nasdaq Composite Index suffered its worst week since April as major tech stocks fell. But Gabour sees this week as a buying opportunity for Tesla, Nvidia and Palantir. Tesla has become one of investors’ top picks, especially after CEO Elon Musk was approved by a majority of Tesla shareholders for a historic $1 trillion pay package on Thursday. The investor believes Tesla stock could surpass its all-time high set in December 2024 and reach $500 per share by the end of this year. This is more than 16% higher than Friday’s closing price of $429.52 per share. The stock price fell 5.9% this week. The company’s stock, a laggard among tech stocks, is up 6.4% this year. TSLA 1Y Mountain Tesla stocks over the past year. “(Musk) has a trillion reasons to want to win the AI race, and when you look at Tesla, I think that’s the big difference,” Gabour said on CNBC’s “Power Lunch” on Friday. “…bulls and bears will debate whether it’s a car company or an AI technology deal. And obviously we believe this is an AI deal,” he said. “As long as we continue to grow in this AI bubble, which we believe will extend into 2026, we are not going to bet on Elon.”Investors believe the newly approved pay plan could help turn Tesla into a robot powerhouse as the company strives to gain market share outside of increasingly competitive electric vehicles. The compensation package consists of 12 tranches of stock that will be awarded to Musk if Tesla reaches certain milestones over the next 10 years, with the first tranche to be paid out if Tesla’s market capitalization reaches $2 trillion. Other goals related to the new plan include Tesla reaching 20 million vehicle deliveries, reaching 10 million active fully self-driving subscriptions, and delivering 1 million Optimus humanoid robots. “This incentive-based concept has been welcomed by shareholders, so I see this as a very bullish development for the name. As long as it’s a bull market, we’re going to buy on the edge,” Gabour said. Gabour said he would buy more of Nvidia and Palantir because of their weakness, as he has a six-month outlook. Their stock prices have risen 40% and 135%, respectively, this year. “NVIDIA is the most important company not only in AI but also in the Nasdaq 100 in terms of weight on the Nasdaq 100,” he said. “So if you think, like we do, that the market is going to rise in the coming months, you want to own the most important stocks. … We think these two companies will continue to rise significantly through this AI boom.” Indeed, Gabour said investors need to remain nimble when it comes to investing in growth stocks in the current market environment. “When you get into a bear market, you want to sell early because they’re going to be hit the hardest,” he said. “But for now, I don’t think we’ve seen the last part of this bull market yet, so we’re going to continue riding.”
