McMahon: "This Is the Year" For MSFT, Likes SMERY in AI Trade
•March 5, 2026
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Why It Matters
McMahon’s bullish stance on Microsoft and other AI‑infrastructure stocks signals where capital may flow as rate cuts and AI demand reshape market dynamics, offering investors a roadmap for high‑growth, lower‑volatility exposure.
Key Takeaways
- •Expect two Fed rate cuts this year, boosting equities.
- •Microsoft seen as undervalued “halo stock” with AI upside.
- •Siemens Energy positioned to profit from AI power infrastructure.
- •Deere’s farm equipment cycle poised for strong growth.
- •Broad market broadening could lift “Mag Seven” stocks 12‑13%.
Summary
Chris McMahon, CEO of Aquinas Wealth Advisors, used the Opening Bell interview to flag 2024 as a pivotal year for AI‑driven “halo” stocks, with Microsoft at the forefront. He argued that despite recent volatility and a 20% dip, Microsoft’s massive cash reserves and AI infrastructure spend make it a prime candidate for a 2,025% upside over the next 18 months, potentially returning to its historic 5.55 price‑to‑earnings multiple by early next year. McMahon also projected two Federal Reserve rate cuts this year, which he believes will underpin a broader market rally that could lift the Mag Seven stocks 12‑13% by year‑end. He highlighted the shift from traditional SaaS to heavy‑asset, low‑obsolescence “halo” stocks, citing Siemens Energy’s AI‑related power backlog and Deere’s upcoming farm‑equipment buying cycle as key beneficiaries. Specific examples punctuated his outlook: Siemens Energy’s sizable order backlog positions it to power AI data centers, while Deere stands to gain from bonus depreciation and lower borrowing costs for agricultural equipment. He also noted Tesla’s evolving role beyond automobiles, referencing a recent robot demonstration as evidence of broader AI disruption. The analyst’s message to investors is clear: blend prudent tech exposure with undervalued, asset‑heavy names that will power the AI economy. By diversifying into Microsoft, Siemens, and Deere, portfolios can capture upside from AI infrastructure while mitigating volatility from rate‑sensitive sectors.
Original Description
Chris McMahon thinks the U.S.-Iran war will be short and expects two rate cuts from the Fed this year. When market broadening takes place, he thinks there’s opportunity in companies outside the Mag 7, especially HALO (heavy assets, low obsolescence) stocks. He’s excited around AI disruption and “loves” energy and raw materials, particularly rare earths and copper. Chris likes one of the Mag 7: Microsoft (MSFT). “This is the year for Microsoft,” he argues, expecting big returns. He also likes Deere & Co. (DE) and Siemens Energy (SMERY).
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