Dale Smothers, CEO of RDS Wealth, is positioning his portfolio for what he describes as a potentially weaker September and October, while remaining firmly bullish on artificial intelligence and several of the market’s biggest technology companies.
In a recent interview, Smothers detailed the stocks he is buying, the positions he is trimming for seasonal reasons and the companies he would consider adding if the broader market experiences a deeper pullback.
His strategy is not centered on abandoning the market. Instead, Smothers said RDS Wealth is taking some profits, temporarily moving capital into broader-market exposure or cash-like positions and preparing to redeploy that money if valuations become more attractive.
Marvell Is Smothers’ Top Technology Addition
Marvell Technology (MRVL) was one of the clearest highlights of Smothers’ interview.
Although the semiconductor stock has already experienced a significant move, Smothers argued that investors may still have room to participate in the company’s long-term growth as artificial intelligence infrastructure continues to expand.
He described Marvell as a potential long-term value opportunity within the AI buildout and said he sees a possible path toward $400 per share. He also referenced recent call options positioned around $380.
Smothers believes Marvell and Nvidia do not necessarily compete for the same role in an AI-focused portfolio.
He compared Nvidia to an engine powering AI infrastructure, while describing Marvell as a company that can provide specialized components and technologies supporting those systems.
When asked to choose between Marvell, Nvidia and Broadcom at current prices, Smothers selected Marvell.
Nvidia: Taking Profits Without Changing the Long-Term Thesis
Despite remaining bullish on Nvidia (NVDA), Smothers said RDS Wealth recently trimmed part of its position.
The move, he emphasized, was not a change in his long-term view of the company. Instead, the portfolio adjustment was driven largely by seasonal considerations.
Smothers said September and October have historically been periods when investors may experience increased market volatility. Rather than attempting to predict the exact bottom, his firm is holding some capital aside and considering re-entry around the beginning to middle of October.
He remains positive on Nvidia’s fundamentals and described its recent earnings performance as exceptionally strong.
For Smothers, trimming Nvidia means taking some profits—not abandoning the stock.
CoreWeave: Profits Shifted Toward Other Opportunities
CoreWeave (CRWV) is another stock where Smothers has been taking profits.
According to the interview, RDS Wealth initially added to the position around the $60–$65 range and subsequently saw the stock climb toward the mid-$90s.
Smothers said the decision to trim was partly about reallocating profits into other opportunities rather than changing his long-term assessment of CoreWeave.
One concern he highlighted was the company’s spending, debt and relatively limited cash flow. He contrasted CoreWeave with Nebius, which he described as a potentially leaner alternative within the AI infrastructure space.
For the time being, some of the capital was moved into RSP, an ETF providing broader-market exposure.
Apple Remains a Long-Term Favorite
Apple (AAPL) remains another important holding in Smothers’ strategy.
He said RDS Wealth had taken some profits after Apple’s recent run to record levels, again primarily because of seasonal considerations.
However, his long-term view remains bullish.
Smothers pointed to Apple’s enormous installed base, brand recognition, ecosystem and continued innovation as reasons he believes the company remains attractive for investors with a long time horizon.
He also discussed Apple’s upcoming foldable iPhone, arguing that strong consumer demand could eventually show up in third- and fourth-quarter results.
Apple’s AI Opportunity
Artificial intelligence remains one of the biggest questions surrounding Apple’s future.
Smothers acknowledged that Apple’s AI capabilities, particularly Siri, have not yet reached the level some consumers expect.
However, he argued that investors should not necessarily wait until Apple’s AI strategy is fully visible before considering the stock. His reasoning is that a successful AI rollout could already be reflected in the share price by the time its impact becomes obvious.
For investors with a decade-long horizon, Smothers said he continues to view Apple as a long-term buying opportunity.
Microsoft: A $600 Price Target
Microsoft (MSFT) also remains high on Smothers’ list.
He reiterated a $600 price target, arguing that the company’s combination of cloud infrastructure, software, artificial intelligence and recurring business relationships provides significant long-term growth potential.
Microsoft’s integration across multiple technology platforms is particularly important to his investment thesis.
Smothers said RDS Wealth continues to hold its Microsoft position rather than taking profits because he believes the stock could move quickly once its growth story gains further momentum.
He indicated that $600 would be the level where the firm would begin looking more closely at taking profits.
Tesla and Meta Are Not Currently on His Buy List
While Apple, Microsoft and Nvidia featured prominently in Smothers’ portfolio discussion, he was less enthusiastic about several other major technology names.
He specifically identified Tesla (TSLA) and Meta Platforms (META) as companies RDS Wealth would currently avoid under its stated strategy.
With Meta, Smothers questioned the company’s spending and its investments in areas such as the metaverse and AI.
Tesla, meanwhile, remains on his watch list, although he said the company’s volatility and speculative characteristics make it less attractive to his current investment approach.
He also mentioned SpaceX as a company he likes from a founder and vision perspective, while noting that speculation and volatility are considerations.
Royal Caribbean Offers a Different Way to Play the Consumer
Smothers’ portfolio is not exclusively focused on technology.
Royal Caribbean (RCL) is another stock he highlighted, particularly as a long-term consumer and experience-based investment.
He said RDS Wealth has held Royal Caribbean since the COVID-era recovery and believes the company still has room to appreciate.
His stated price target is around $350 or higher.
Interest rates remain an important variable because Royal Caribbean carries debt. Smothers said the company’s efforts to reduce debt and buy back shares are factors he views positively.
He also sees an advantage in the company’s business model: vacations and experiences are difficult for artificial intelligence to replace.
Smothers acknowledged that Carnival and Norwegian Cruise Line may trade at steeper discounts, but said he prefers Royal Caribbean because of its combination of family-oriented offerings, ships and overall experience.
Preparing for a Potential September-October Pullback
A central theme of the interview was Smothers’ description of a possible “financial winter.”
He stressed that he was not predicting a market disaster.
Instead, he was referring to the possibility of seasonal weakness during September and October.
His approach is to take some profits when stocks have risen significantly and maintain capital that can be redeployed if prices fall.
Smothers said investors should not automatically become fearful if the market declines 5% or 10%. In his view, such declines can create opportunities to purchase companies with strong long-term fundamentals at lower prices.
What Is on His Pullback Shopping List?
If the market experiences a significant correction, Smothers said he would return to several of the technology leaders he already follows.
Microsoft is near the top of that list, with the possibility of adding to his existing position.
Apple would also be considered.
Amazon (AMZN), which was not currently part of his primary buy list, could become attractive following a meaningful decline.
Nvidia would also be a potential purchase if the stock experiences a major drop.
Smothers said Marvell would remain a holding rather than a stock he is looking to abandon.
He also discussed the possibility of using options tied to the broader market rather than simply buying the index itself if a substantial market discount emerges.
Smothers’ Rapid-Fire Stock Picks
The interview ended with a series of rapid-fire questions that provided a snapshot of Smothers’ preferences.
Asked which stock he would own for the next five years if he could select only one, he chose Nvidia.
Asked which stock he would cut first, he selected CoreWeave.
His first stock purchase on a market pullback would be Apple, while he identified Marvell as the stock he expects could double first.
For an economic slowdown, he selected Apple as the more resilient name.
For a scenario involving higher Federal Reserve interest rates, he pointed to Nvidia, while also highlighting the HDV dividend-focused ETF.
He identified Nvidia as having the biggest competitive advantage among the companies discussed.
The Biggest Risk: AI Falls Out of Favor
Despite his strong conviction in AI-related stocks, Smothers acknowledged the central risk to his strategy.
If investor enthusiasm for artificial intelligence fades substantially, many of his preferred technology stocks could be affected.
That makes the AI investment theme both a major opportunity and a significant source of portfolio risk in his current framework.
For now, however, Smothers remains bullish. His strategy is to maintain exposure to companies he believes have strong long-term fundamentals while using seasonal market weakness as a potential opportunity to reposition.
The broader message from his portfolio moves is therefore less about abandoning technology stocks and more about managing entry points, taking profits selectively and keeping capital available for the next market opportunity.
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