Brianne Gardner’s Top Picks for Aug. 28, 2026

Brianne Gardner, Portfolio Manager & Senior Wealth Manager, Velocity Investment Partners of Raymond James Ltd

Focus: North American large-caps

Top Picks: Broadcom, Constellation Energy, RB Global

MARKET OUTLOOK:

The U.S. market still has plenty going for it, but the easy part of the rally may be behind us. This week’s results from Nvidia and Salesforce were important because they validated both sides of the artificial intelligence (AI) story. Nvidia showed that demand for AI infrastructure remains enormous, while Salesforce showed that software companies can integrate AI into their existing platforms rather than simply be disrupted by it.

The challenge is expectations. Earnings remain healthy, but valuations are elevated in parts of the market and the 10-year Treasury yield is still around 4.7 per cent. We are not stepping away from U.S. equities, but we are becoming more selective. We still like technology and AI infrastructure, while also looking beyond the biggest winners as leadership broadens.

Canada gives us a different opportunity set through financials, energy, materials and infrastructure. All six major Canadian banks just beat earnings expectations, which tells us credit and the consumer have held up better than many feared. But financials have also had a tremendous run, so we like the exposure without wanting to be overweight.

Diversification remains at the centre of the strategy.

Different sectors, geographies and sources of growth rather than depending too heavily on one theme.

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TOP PICKS:

Broadcom (AVGO NASDAQ)

We own Broadcom and see it as one of our favourite ways to participate in the next stage of the AI buildout. While Nvidia gets most of the attention, Broadcom is another critical supplier, designing custom AI chips and the networking equipment that connects thousands of chips together.

A great example is OpenAI’s new Jalapeño chip, developed with Broadcom, which the company says delivers more AI work per watt (better efficiency) than Nvidia’s Blackwell.

That highlights a broader shift toward custom-designed chips for large technology companies, creating another major opportunity for Broadcom.

With valuation becoming more reasonable after the recent pullback, we continue to like it as a picks-and-shovels AI play that combines AI infrastructure with recurring software revenue, although we would still describe it as a high-growth stock rather than a cheap one.

Constellation Energy (CEG NASDAQ)

We own Constellation Energy and see it as one of our direct ways to play the enormous increase in electricity demand coming from AI. Constellation owns the largest nuclear fleet in the U.S., giving it something increasingly valuable: reliable electricity that can run 24 hours a day.

AI data centres need enormous amounts of power, and dependable baseload is becoming increasingly valuable to data centres and other large users that cannot afford interruptions. This demand is allowing Constellation to sign very long-term contracts directly with major companies. Its latest agreements included 15 plus year nuclear power contracts, including Walmart. The Calpine acquisition added natural gas and geothermal generation, making Constellation much more diversified and creating the largest electricity producer in the U.S. The deal added debt and some volatility, but the story remains strong and management raised its outlook.

Power could become the most important resource for AI buildouts, and CEG owns some of America’s most valuable power assets.

RB Global (RBA TSX)

We like RB Global after the recent pullback, which we think has created a more attractive entry point into a high-quality marketplace business. Most Canadians know it by its old name, Ritchie Bros. Today it sells everything from damaged cars to excavators, trucks and farm equipment. The reason for the pullback is worth explaining simply.

RB handled 11 per cent more transaction value last quarter, but it earned a slightly smaller percentage on each transaction. That was partly because newer acquisitions carry lower fees and partly because it used incentives to drive more automotive volume. We do not view that as a broken business. Revenue increased, profits continued to grow, the company gained automotive market share and management raised its full-year expectations. The next opportunity is agriculture.

The Big Iron acquisition gives RB Global a much larger position in U.S. farm equipment, land and livestock and another marketplace it can expand over time. We like the setup after the pullback. Management raised its outlook, while the lower share price gives us a more attractive entry.

PAST PICKS: AUG. 25, 2025

IBM (IBM NYSE)

Then: US$239.43

Now: US$236.79

Return: -1%

Total Return: 2%

Salesforce (CRM NYSE)

Then: US$247.87

Now: US$260.81

Return: 5%

Total Return: 6%

Brookfield Infrastructure (BIP.UN TSX):

Then: $42.69

Now: $54.00

Return: 26%

Total Return: 32%

Total Return Average: 13%