Despite Big Tech's big run to start the year, Neuberger Berman's Daniel Flax still sees opportunity in a few of the mega caps heading into the back half of the year.
"I continue to see select opportunities into the second half and beyond. It's driven by the companies that can innovate, invest and ultimately, drive good growth," Flax said Wednesday on CNBC's "Squawk Box."
Flax's Three-Headed Giant: Apple Inc
"They do face choppy demand in some of the markets and I think that remains a challenge, but I think the bigger story is really this empowerment of the developers and the broader ecosystem, which remains vibrant," he said.
The company is executing well on its product cycles, Flax said, which has created a sense in the market Apple is able to navigate the choppy environment, driven by a broadening of its revenue drivers.
"It's not that they are immune from the challenges, but they are continuing to execute ... I think what the market will care about into the second half and next year is that growth is likely to improve," he said.
Alphabet Inc
The company is infusing generative AI into its Search platform, which should help Google maintain dominance in the space, he said.
Alphabet also offers investors strong growth prospects via YouTube and its cloud business is "underappreciated," Flax said.
E-commerce and cloud giant Amazon.com, Inc.
Flax also noted Amazon Web Services (AWS) remains "very well positioned for the next generation of workloads."
AAPL, GOOG, AMZN Price Action: At the time of publication, Apple shares were up 0.12% at $189.48, Alphabet shares were down 0.73% at $120.20 and Amazon shares were down 0.67% at $128.17, according to Benzinga Pro.
