Defiance ETFs: 'It's a great time to get into the market,' buy tech megacaps and Nvidia
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Defiance ETFs CEO Sylvia Jablonski said Tuesday that the current stock market has left a lot of high-quality names "on sale," especially tech megacaps like Apple (AAPL), Alphabet (GOOGL) (GOOG), Microsoft (MSFT) and Amazon (AMZN). She added that Nvidia (NASDAQ:NVDA) also looks attractive, even with its recent warning, which sent the stock tumbling earlier this week.
"It's a great time to get into the market and start thinking about thematic investing," the CEO, CIO and co-founder of Defiance ETFs told CNBC.
Jablonski argued that the recent earnings season has shown that "there's been a resilience" in these higher-quality names to the economic pressures brought on by high inflation and slower growth. While they remain "a bit risky" in the short run, she sees them as buying opportunities for investors with longer-term horizons.
Defiance ETFs CEO praised firms like MSFT, AMZN, AAPL and GOOGL for strong balance sheets and operating margins that can absorb higher inflation.
Turning to NVDA, Jablonski acknowledged the company's recent sales warning, which sent the stock lower by 6% on Monday amid signs of weakness in its gaming sector. 
However, she called the semiconductor maker "a strong, strong company" longer term, which will be well-positioned to take advantage of the general demand for computer chips in an economy that will become more automated over time. As such, Jablonski said she was comfortable buying here for a three-to-five-year time horizon.
Asked her least-favorite parts of the market, Jablonski pointed to the work-from-home segment that surged during the pandemic but has fallen off lately. Specifically, she pointed to Peloton (PTON) and Netflix (NFLX) as two names she was avoiding.
Looking at some of Jablonski's favorite names, NVDA has been the worst performer in the group, falling by about 41% so far in 2022. MSFT, GOOGL and AMZN have all declined between 16% and 20% since the end of 2021.
Of these names, AAPL has held up the best during 2022, slipping by 9%. It's also the only member of the group to outperform the broader market, with the S&P 500 retreating about 14% year to date.

For another perspective on NVDA's pre-announcement, see a bearish take from Seeking Alpha contributor Sustainable Development Holdings, who says "investor pain has just started."