Large cap tech stocks like Nvidia are a deal now, says Silvant Capital's Michael Sansoterra

Core Perspective - The recent volatility in oil prices has raised questions about the stability of the market and the risk-on trade, but statistically, it has not derailed the overall market direction [2][3][15]. Oil Market Impact - Oil prices surged to $119 per barrel after hours but have since dropped below $95, indicating rapid market fluctuations [2]. - The ongoing geopolitical tensions, particularly related to the Iran war, have exacerbated concerns about the AI slowdown trade, presenting potential buying opportunities in tech stocks [6][15]. Technology Sector Insights - Large-cap tech stocks, particularly Nvidia, have seen a significant reduction in forward earnings multiples from 38 times to around 20-21 times, despite earnings growth exceeding 60% [5]. - The tech sector, especially companies involved in the AI supply chain, is viewed as a long-term opportunity despite short-term market shocks [6][10]. - The Russell 1000 growth index, which is 50% tech, indicates the importance of getting tech investments right for long-term success [10]. Specific Company Focus - Eli Lilly is highlighted as a strong investment due to its positioning in the GLP-1 and weight loss market, with expectations for its oral medication, Zepbound, to capture significant market share [14]. - The company has been held since 2021 and is seen as well-positioned compared to competitors like Novo [14]. Market Volatility and Future Outlook - The current market volatility is considered normal after three strong years of equity returns, particularly in technology [9]. - The messaging from the administration regarding geopolitical tensions will be crucial in determining market sentiment and risk appetite moving forward [15][16].