# Portfolio manager favors AI & value barbell strategy

> David Wagner's barbell strategy combines AI infrastructure and value stocks for sentiment-driven pullbacks.
- Title: Portfolio manager favors AI & value barbell strategy
- Summary: David Wagner's barbell strategy combines AI infrastructure and value stocks for sentiment-driven pullbacks. David Wagner recommends AI infrastructure stocks…
- Keywords: david wagner, aptus capital advisors, ai infrastructure, copart inc, amphenol corporation, quanta services, barbell strategy, sentiment-driven pullback, market volatility, equity portfolio, business, finance
- Source: Yahoo Finance — https://finance.yahoo.com/markets/stocks/articles/portfolio-manager-favors-ai-value-153300952.html
- Published: 2026-09-17T15:33:00+00:00
- Read time: 2 min
- Topics: david wagner, aptus capital advisors, ai infrastructure, copart inc, amphenol corporation, quanta services, barbell strategy, sentiment-driven pullback, market volatility, equity portfolio, business, finance
## Wagner's market outlook
David Wagner, head of equity at Aptus Capital Advisors, sees a sentiment-driven pullback rather than a growth-driven crash in stocks.

> I'd vehemently answer sentiment risk. I mean, anywhere you look right now, there is growth everywhere.
## Sentiment vs growth pullbacks
Wagner distinguishes between sentiment-driven pullbacks caused by fear and growth-driven pullbacks reflecting weakening business conditions.
## 2025 tariff example
Wagner describes the 2025 tariff tantrum as a growth scare that produced a 17% market decline from peak to trough.
## 2024 Iran conflict example
Wagner characterizes the Iran conflict pullback as a sentiment scare with the market down about 7% to 8%.
## Oil and rates impact
Wagner says oil at $100 a barrel is more noise than a fundamental threat, while 10-year Treasury yields at 5% could weigh on sentiment.
## AI spending as structural risk
Wagner identifies a meaningful slowdown in AI spending as the market's main structural risk rather than temporary macro concerns.

> AI has been the center story. It's been the main character for the market for the last three years, and I think it's going to continue to be the main character over the next few years.
## AI infrastructure focus
Wagner prefers companies selling physical inputs for AI buildouts over chipmakers and hyperscalers.
## Amphenol as AI connectivity
Amphenol provides connectivity systems for AI server racks and sells components across copper, fiber-optic, and hybrid designs.
## Amphenol's growth metrics
Amphenol's data-communications business has grown at 18% with a valuation of 36 to 37 times forward earnings.
## Quanta Services power side
Quanta Services provides power infrastructure for AI data centers with a $53 billion backlog up 50% year over year.
## Copart as value pick
Copart, Inc. operates an online marketplace for used vehicles with shares down double digits year-to-date.
## Copart's market position
Copart gained market share from 2020 through 2024 due to technological advantages after Ritchie Bros. acquired IAA.
## Copart's recovery signs
Copart returned a former CEO, has substantial stock ownership, and implemented a new growth plan with share buybacks.
## Momentum screening method
Wagner uses momentum in stock prices and earnings expectations to identify investments without chasing every winner.
## Avoiding low-quality stocks
Wagner avoids non-earners, especially smaller firms with high leverage and slowing growth.
## Investor decision process
Investors should distinguish fear from weakening fundamentals, demand evidence of improving earnings, and ensure each position has a business-specific catalyst.
## Key takeaway

David Wagner recommends AI infrastructure stocks like Amphenol and Quanta Services alongside value stocks such as Copart for sentiment-driven market pullbacks.