Following a five-week market selloff that pushed major averages into correction territory, Gibbens Capital Management CIO Mark Gibbens says the pullback has created a prime buying opportunity for long-term investors eyeing the tech sector.
Despite recent geopolitical headwinds and inflation concerns weighing heavily on the broader markets, Gibbens remains decidedly bullish on technology. Pointing to the roughly 10% drop across major indices, he noted that fundamentally strong companies are now trading at attractive multiples.
“If you’re a long-term investor, I think it’s a great time to get in,” Gibbens said in a Schwab Network interview. “You’re getting these great companies at great prices.”
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Among his top broad tech picks are industry giants Nvidia Corp. and Alphabet Inc.. Gibbens highlighted the significant shift in Nvidia’s valuation, noting that the chipmaker is trading at a much more palatable 20 times forward earnings—a steep drop from the 40 times multiple seen in the recent past.
According to Benzinga Pro, the stock was trading at a forward price-to-earnings of 20.284x, as compared to its industry average of 37.030x.
He dismissed concerns about a broader slowdown in the artificial intelligence (AI) trade, emphasizing the ongoing hardware infrastructure boom. “We can’t get enough compute power out there,” Gibbens explained. “The demand is just insatiable.”
Beyond hardware, Gibbens pointed to Palantir Technologies Inc. as a standout in the software space. While acknowledging the stock’s recent pullback alongside other software names, he argued that Palantir’s enterprise and government businesses are uniquely positioned to survive what he calls the “AI scare”—the fear that AI will eat all software.
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Unlike some enterprise software peers like Salesforce Inc. or Adobe Inc., which Gibbens views as slightly more at risk of being disrupted by AI, Palantir is actively integrating with large language models.
He noted that the company is “working with the LLMs and working with AI as opposed to possibly being overtaken by it.”
While monitoring high-frequency economic data, Gibbens remains largely unconcerned about the labor market. Instead, his focus stays fixed on geopolitical tensions and inflation.
