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Bank of America Picks 5 Tech Stocks for Turbulent Markets

Bank of America has recommended buying five technology stocks—Microsoft, Meta Platforms, Apple, PicPay Holdings, and Payoneer Global—amid market turbulence. The bank cites Microsoft's leadership in AI and cloud services, Meta's upcoming AI-driven products, Apple's iPhone upgrade cycle and services growth, PicPay's fintech expansion in Brazil with a large user base, and Payoneer's significant addressable market in B2B payments. All stocks except Payoneer have seen recent price declines, presenting potential entry points. Analysts provide specific price targets and highlight growth drivers such as AI adoption, operational leverage, and market opportunities, reflecting confidence in the tech sector's resilience.

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Bank of America Picks 5 Tech Stocks for Turbulent Markets

Bank of America analysts have identified Microsoft, Meta Platforms, Apple, PicPay Holdings, and Payoneer Global as top tech stock buys in the current volatile market, citing AI growth, fintech opportunities, and recent price corrections.

Microsoft

  • Analyst Tal Liani reinstated coverage with a buy rating and a $500 price target.
  • Positioned as a key beneficiary of AI in applications and infrastructure.
  • Robust demand for Azure cloud platform expected to drive sustained mid double-digit growth over three years.
  • Stock down 30% in the past six months, considered attractive at current levels.

Meta Platforms

  • Buy rating based on AI catalysts, including the delayed "Avocado" launch and other AI services like video tools, Agentic, search, and subscriptions.
  • Multiple AI-based consumer services in development could launch this year, supporting long-term monetization.
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Apple

  • Buy rating driven by an expected strong iPhone upgrade cycle in fiscal 2025 and 2026 to enable Gen AI features.
  • Higher growth in Services revenue, improved margins from custom silicon, and continued capital returns.
  • AI features anticipated to boost institutional ownership; legal risks viewed as manageable.

PicPay Holdings

  • Brazilian fintech with approximately 43 million active users, recently IPO'd at $19 per share on Nasdaq.
  • Services for small and medium enterprises and credit offerings support revenue expansion.
  • Strong earnings momentum from monetizing existing clients and operational leverage gains.
  • Valuation multiples discounted versus Latin American and global peers.
  • Stock down 39% in March, recommended as a buy-the-dip opportunity.

Payoneer Global

  • Addresses a B2B total addressable market of about $6 trillion, with marketplace payouts around $300 billion.
  • Differentiated by broad regulatory coverage, partner rails, and account-centric experience for SMB workflows.
  • Building a competitive moat in B2B payments, with robust cash generation.
  • Analyst Aditya Buddhavarapu initiated coverage with a buy rating and $6 price target.
  • Stock up 11% over the past month, still seen as attractive at current prices.
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