Gary Black, a seasoned Wall Street investor, has made a significant shift in his investment strategy. Black, who recently sold off his remaining shares in Tesla Inc. TSLA, is now focusing on what he sees as major opportunities in big tech.
What Happened: Black, the managing partner at Future Fund LLC, recently divested his Tesla holdings amid valuation concerns, helping clients avoid a selloff triggered by a public dispute between CEO Elon Musk and President Donald Trump. Black, in an interview with Market Watch, revealed that he has now turned his attention to what he considers to be significant opportunities in big tech, such as Nvidia NVDA, Meta META, Amazon AMZN and DoorDash DASH.
Black’s investment approach begins with identifying “ten long-term circular mega trends,” including e-commerce, 24/7 information technology, and artificial intelligence (AI).
He is particularly bullish on Nvidia due to its AI roadmap and high demand for its high-end AI chips. Despite Tesla’s recent decline, Black believes Nvidia, with a forward earnings multiple of around 32 times, is a more attractive investment.
Meta is another major position in Black’s portfolio, with its growth in Instagram and Facebook. Amazon’s expanded offerings and DoorDash’s increasing restaurant partnerships also make them appealing investments, according to Black.
Despite the ongoing market rally, Black remains optimistic about the market’s future, anticipating that the Federal Reserve will likely begin cutting interest rates, albeit not as rapidly as Trump would prefer.
“…there are areas where people are just getting overly exuberant about prospects. And that’s always negative,” cautioned Black.
Why It Matters: Black’s shift in investment strategy reflects the evolving landscape of the tech market. Big tech companies have been driving significant market gains, with the Magnificent 7 stocks leading nearly 55% of the S&P 500's market capitalization recovery since the April lows.
Black’s move also aligns with the broader trend of tech megacaps dominating the market. In May 2025, the Magnificent Seven added nearly $2 trillion in market value, marking their strongest monthly performance in years. This trend underscores the enduring appeal of big tech companies, making them attractive investment opportunities, as recognized by Black’s recent portfolio adjustments.
Roundhill Magnificent Seven ETF MAGS, which invests in Magnificent Seven stocks, surged 24.20% over the past year, according to data from Benzinga Pro.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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