CrowdStrike, Palantir Among Stocks Poised To Double Or Triple Over The Next Year, Says Munster

The so-called magnificent seven should be a part of most portfolios, according to Deepwater Asset Management's Gene Munster.

However, the real growth opportunity over the next year is in select sub-$50 billion market cap companies, Munster argued on CNBC's "Squawk Box."

Investors should still own tech despite the sector's major move year-to-date, the investment fund manager said.

"I don't think you need to own all of the magnificent seven, but I think you should have some exposure," Munster added.

Several mega-cap tech names are currently trading near 52-week highs. Munster sees opportunity in some of the leaders such as Meta Platforms Inc (NASDAQ: META), Alphabet Inc (NASDAQ: GOOG) and Apple Inc (NASDAQ: AAPL).

"Even though these magnificent seven will continue to be steady ... and should be part of most people's portfolio, we think performance is going to come from the sub-$50 billion market cap companies," Munster said. 

See Also: Top 5 Tech And Telecom Stocks That You May Want To Dump In Q4

There are several tech companies with market caps below $50 billion that could help supercharge investor returns as we head into 2024. Deepwater is invested in about 20 of them; Munster shared five of Deepwater's picks:

• CrowdStrike Holdings Inc (NASDAQ: CRWD)
• Palantir Technologies Inc (NYSE: PLTR)
• Zillow Group Inc (NASDAQ: Z)
• Etsy Inc (NASDAQ: ETSY)
• Private lithium-ion battery company Redwood Materials. 

Munster believes these companies have a "2x or 3x upside opportunity over the next year."

CrowdStrike is an under-the-radar cybersecurity company set to report earnings after the close Tuesday. Etsy is poised to get a boost from holiday shopping and recent retail trends showing the consumer remains strong. And Zillow, which is changing the real estate sector, is currently working on a new version of its app.

Palantir is another underappreciated company that can continue to ride the artificial intelligence wave higher, Munster explained.

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Photo: Innova Labs from Pixabay.