It's time to buy tech stocks again, including Nvidia

  • The cloud: Nutanix
    "The cloud" is one of those game-changing technology developments that comes along once a decade. It's revolutionized the business world by giving companies access to vast server farms and the apps and storage they host. It's made life easier for millions of people who probably don't even know it exists — turning Jeff Bezos into the richest man in the world in the process. His AMZN, +0.39% offers the unstoppably popular cloud service called AWS.

    The "cloud" everyone talks about, though, goes far beyond the "public" clouds offered by companies such as It is actually a vast hodgepodge of smaller clouds, networks, apps, storage systems and desktop computers inside large companies.

    It's quite a jumble. So it can be confusing to navigate. Enter Nutanix NTNX, +1.75% Its software helps companies set up "hybrid clouds." This means they pick and choose what apps and services they want to run on various clouds and how to best serve them up. Nutanix calls this hyper convergence.

    If you missed the triple in this stock from the summer of 2017 to the summer of 2018, you are in luck. Nutanix stock fell hard in February when guidance came up light. But this is still the same company, and the same big-picture trends are still in place. Nutanix is a holding of the ARK Web x.0 ETF.

    The hidden risk: The technology grave yard is full of upstart innovators trounced by larger competitors that copy-cat the success. Dell Technologies DELL, +3.71% Hewlett Packard Enterprise HPE, +0.82% and Microsoft MSFT, +0.39% are working on this right now.

    3D printing: Stratasys and Materialise
    3D printers aren't as ubiquitous as some predicted. But deep inside companies, 3D printers are already widely used to make specialized parts and design prototypes in sectors ranging from auto makers and aerospace, to defense and footwear.

    Despite this, ARK Invest's 3D Printing ETF has been a bad performer. ARK still loves the space, though. "Our confidence in 3D printing has not diminished," says CIO Wood. She thinks uptake will be particularly strong in aerospace and medical devices. "We think this is a coiled spring."

    One favorite play here is Stratasys SSYS, +0.25% Its 3D printers, materials and software are used by Team Penske and Andretti Autosport in auto racing, and the British car maker McLaren Automotive. It also has a strong foothold in aerospace, health care and consumer products. Another favorite is Materialise MTLS, +0.97% which provides 3D printing software and services, with strengths in health care where it prints medical devices, implants and patient-specific surgical guides.

    Both companies are overweight positions in the 3D Printing ETF. They're also in the ARK Innovation and ARK Industrial Innovation ETFs.

    The hidden risk: 3D printing remains a niche market without much growth.

    At the time of publication, Michael Brush had no positions in any stocks mentioned in this column. Brush has suggested TSLA, F, GM, GOOGL and NVDA in his stock newsletter, Brush Up on Stocks. Brush is a Manhattan-based financial writer who has covered business for the New York Times and The Economist Group, and he attended Columbia Business School in the Knight-Bagehot program.

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