Infrastructure Capital Advisors CEO and CIO Jay Hatfield highlighted four stocks he believes can perform well despite the Federal Reserve’s interest-rate policy decision, in a conversation with Phil Rosen.
High-Conviction Tech and Defense
Chief among his top recommendations is semiconductor maker Marvell Technology Inc. (NASDAQ:MRVL), which Hatfield called “the pick of the year, if not the pick of the decade.”
Highlighting a major partnership deal with Google’s parent Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) that implies $120 billion in potential revenue against a $12 billion revenue base, Hatfield set a $300 price target for MRVL stock, implying a 35.32% upside potential from current levels.
To cushion against broader market volatility, Hatfield recommended defense contractor Lockheed Martin Corp. (NYSE:LMT). Describing it as a “super boring stock” with a “0.3 beta,” he noted that a massive backlog of missile orders driven by Middle East conflicts offers stable performance and strong call-writing upside regardless of central bank policy.
Contrarian Wall Street Bets
Hatfield also identified asset manager KKR & Co Inc. (NYSE:KKR) and enterprise software giant Oracle Corp. (NYSE:ORCL) as contrarian opportunities, noting both are “well-hated by hedge funds” due to short-term basket trading.
Hatfield also identified asset manager KKR & Co. (NYSE:KKR) and enterprise software giant Oracle Corp. (NYSE:ORCL) as top opportunities. He argued that concerns around KKR’s private-credit exposure have been overblown, noting that private credit accounts for only about 15% of its assets.
He also highlighted that the firm recently secured $3.3 billion in proceeds from an asset sale, creating $2 billion in gains. Meanwhile, Hatfield defended Oracle’s heavy capital expenditure, arguing that its enterprise database systems represent mission-critical operational tools backed by high-return, multi-year contracts.
Macro Outlook and Rate Expectations
Despite macroeconomic headwinds, Hatfield maintains a street-high S&P 500 year-end price target of 8,250, 8.76% from its current level, based on 20 times next year’s earnings.
He harshly criticized central bank decision-making, calling the Federal Reserve a “fatally flawed” institution that miscalculates inflation through distorted indicators while ignoring rapid declines in core CPI and real-time shelter data.
Currently, the CME FedWatch tool is pricing in about a 92.5% probability of a 25-basis-point rate hike at Wednesday’s Federal Open Market Committee meeting, which would lift the benchmark target range to 3.75%–4.00%.
How Have Hatfield’s Stock Picks Performed?
| Stocks | 1-Month | 6-Months | YTD | 1-Year | 5-Years |
| MRVL | -0.14% | 152.33% | 160.88% | 228.79% | 254.95% |
| LMT | -12.36% | -17.42% | 10.29% | 12.72% | 54.59% |
| KKR | -12.29% | 16.37% | -21.56% | -30.87% | 54.75% |
| ORCL | -6.76% | -9.52% | -27.99% | -53.55% | 59.98% |
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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