Veteran investor Jed Ellerbroek, Jr., portfolio manager at Argent Capital Management, has named Microsoft Corporation (NASDAQ: MSFT) and Nvidia Corporation (NASDAQ: NVDA) as his top investment picks—underscoring the continued strength of the technology sector and its role in fueling a broader wave of economic innovation.
In a recent appearance on the Schwab Network, Ellerbroek shared his confidence in both companies, noting their powerful positions at the forefront of artificial intelligence, cloud computing, and global infrastructure transformation.
Why Microsoft Remains a Tech Titan
Microsoft, once under pressure due to investor concerns over its cloud business, Azure, has successfully turned the tide. The company delivered upbeat guidance in its latest earnings report, putting to rest any worries about growth stagnation. “Microsoft’s core business is strong, and the rollout of its AI-powered Copilot products is going smoothly,” Ellerbroek noted.
The momentum continues to build following Microsoft’s AI-themed Build Conference, which reaffirmed the company’s leadership in integrating generative AI into both consumer and enterprise software. Analysts at Raymond James have reiterated their “Outperform” rating, signaling robust confidence in Microsoft’s trajectory.
Nvidia: The Backbone of the AI Revolution
Nvidia, meanwhile, is not just riding the AI wave—it’s powering it. From cloud data centers to government AI infrastructure initiatives, Nvidia’s chips are in unprecedented demand. “Entirely new customer segments are emerging for Nvidia’s hardware,” Ellerbroek emphasized, citing international interest in AI investment, including recent developments from the Middle East.
Recent data highlights just how central Nvidia has become: since the debut of ChatGPT in late 2022, venture capital firms have poured over $306 billion into AI and machine learning startups globally—with Nvidia’s hardware providing the computing foundation for much of that innovation.
In fact, Microsoft and Meta together now spend nearly half of their annual capital expenditures on Nvidia chips. This trend speaks volumes about the long-term importance of Nvidia’s technology, not just in AI but in shaping the future of computing itself.
A Stronger Economy, Driven by Innovation
The bullish outlook for Microsoft and Nvidia isn’t happening in a vacuum. The broader economy is benefiting from a wave of capital investment in AI, automation, and digital infrastructure. In Q1 2025 alone, global venture capital investment in AI and machine learning topped $76 billion, accounting for over 70% of all VC deal value. In the U.S., that figure reached a remarkable $66 billion—an unmistakable signal of optimism about the future of technology and productivity.
Investors are taking note: Nvidia’s shares have surged over 670% since the launch of ChatGPT, compared to a 42% rise in the S&P 500. With Nvidia set to report earnings on May 28, analysts anticipate a 66% jump in revenue and a 44% rise in earnings per share—evidence of sustained demand and long-term opportunity.
The Bigger Picture: Opportunity and Upside
While some investors might be on the lookout for under-the-radar AI plays, Microsoft and Nvidia continue to offer compelling upside with strong fundamentals, visionary leadership, and massive tailwinds from the AI revolution.
The convergence of innovation, capital investment, and enterprise demand is shaping a remarkably resilient and promising economic environment. And for long-term investors, that means the future is looking brighter than ever.
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