Tech stocks are making a comeback, but it doesn’t look sustainable. Here’s how to play the sector.
Experts recommend sticking to large-cap stocks, having conviction in your picks and looking for short-term yield opportunities

It makes sense that investors are sticking to the Big Tech trade, since that is what has worked, said Jerry Sneed, Managing Partner at Third View Private Wealth. So if you’re already invested in the group of stocks known as the Magnificent Seven, stay invested but understand what you own, he added. The reason for that is twofold: First, investing in the AI trade is a long-term play, not a short-term one, which means there must be a willingness to accept the volatility and the time it takes for a company to reach its potential. Second, investors who understand the key drivers of a company’s success and its risks are less likely to panic sell on day-to-day headline news, because they are looking ahead.
Sneed’s statement even applies to Tesla Inc.’s stock TSLA, which has experienced increased volatility due to Chief Executive Elon Musk’s involvement in politics. Last week, a war of words erupted on social media between Musk and President Donald Trump, and while Tesla’s stock has rallied in the past two sessions, it’s still down 7% since Wednesday’s close, before the feud began.