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 META, Alphabet Inc GOOG and Apple Inc 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 CRWD
• Palantir Technologies Inc PLTR
• Zillow Group Inc Z
• Etsy Inc 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.

Read Next: Portfolio Manager Has The 'Most Conviction' In This China Tech Stock Despite Staggering Drop In Share Price

Photo: Innova Labs from Pixabay.