Crispin Capital Management Likes Mellanox Technologies

The technology sector has been one of the frontrunners of this six-year rally. However, even after such a strong rally, many fund managers believe the technology space still provides unparalleled opportunities.

Among these bulls is Michael Cahill, founder of Crispin Capital Management, LLC. Cahill was on Wall Street Week recently to discuss where he currently sees opportunity in the market and to share one his favorite picks in the space – Mellanox Technologies, Ltd. MLNX.

Opportunity In Technology

"I see a lot of opportunity in the technology sector," Cahill began. "Growth is moderating at the margin, but margins are at peak levels, which has delivered a lot of cash flow to the balance sheets of these companies."

Related Link: Is Intel A Bellwether For The Semiconductor Industry?

Mellanox Technologies

Cahill was asked what his favorite picks in the tech space are. He replied, "Well, within the semiconductor space, we see a lot of M&A activity that we think will take place over the next couple of years.

"We are getting activist activity in technology, which we had not had before. They had previously shied away. But given the cash on the balance sheets of these companies, people are attracted to them, and there is a lot of synergies to be had from merging the companies together.

"So, within some growth areas in the semiconductor space, one on the data center side, we like a company called Mellanox. They accelerate basically the connectivity of the boxes in the data center. Automotive is a big area of growth; the semiconductor content within the automotive space is becoming much larger," Cahill concluded.

Image Credit: Public Domain