Technology bellwether Cisco reported earnings on Wednesday that topped analysts’ expectations. So does this signal better news for the rest of the sector going forward? David Eiswert, vice president and portfolio manager at T. Rowe Price Associates, shared his favorite tech plays.
“We’ve gone through eight to nine years where we’ve gone through multiple compression and tech hadn’t really been a space where people had been particularly interested in investing,” Eiswert told CNBC.
Eiswert said the sector has been showing signs of improvement financially in the last year—especially the large-cap tech stocks.
“So we’re at a point in time where we’re beginning to see a little bit of an economic recovery and you’ve got to spend now to take advantage of business getting better,” he said.
“You’re seeing that in Cisco and you’re seeing that elsewhere.”
Eiswert said he is particularly optimistic about the supply and demand for memory stocks.
“All these devices need memory to work and to process—you need memory to store digital photos, music,” he said.
“If you look at the memory semiconductors, we really haven’t seen any capital expenditure in the last two to three years so you’re in this situation where these devices are proliferating, but no one’s building any capex.”
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Eiswert and his firm own shares of SNDK, MU, ASML, LRCX, JDSU and JNPR.