Brianne Gardner Identifies Large-Cap Leaders for August 2025
IBM, Salesforce, and Brookfield Infrastructure headline Brianne Gardner’s large-cap strategy as markets weigh rate cuts and resilient earnings.
Markets on both sides of the border are navigating a delicate balance between slowing inflation, cautious central banks, and resilient corporate earnings. In the United States, the tone shifted after Federal Reserve Chair Jerome Powell hinted at Jackson Hole that rate cuts may finally be on the horizon. Inflation has cooled to 2.7 per cent on the headline number, though core inflation remains sticky at 3.1 per cent. That persistence keeps policymakers watchful, even as investors grow optimistic that a soft landing is possible.
Canada mirrors the U.S. narrative, albeit at a softer pitch. Headline inflation has dropped to 1.7 per cent, thanks largely to lower energy costs, but core inflation near three per cent has kept the Bank of Canada cautious. With the policy rate at 2.75 per cent, traders are split over whether a September cut is likely. Meanwhile, the Toronto Stock Exchange has held its own, lifted by financials and materials, even as energy plays lagged.
Against this backdrop, Brianne Gardner, Senior Wealth Manager at Velocity Investment Partners, Raymond James, advises staying anchored in quality. Her focus for the second half of the year is on large-cap names with strong cash flows and the ability to sustain pricing power.
IBM (NYSE: IBM)
IBM is no longer just a legacy tech player. The company has remade itself into a force in hybrid cloud and artificial intelligence, with Red Hat and watsonx as the twin pillars of its strategy. Software revenue continues to drive growth, rising eight per cent last quarter, though some clients have temporarily slowed spending. For Gardner, those pauses are minor speed bumps in an otherwise strong trajectory.
IBM’s generative AI pipeline has swelled to US$7.5 billion in booked business, an increase of US$1.5 billion in just one quarter. Margins are improving as higher-value software becomes a bigger share of revenue, while automation trims costs. Expected cash flow of US$13.8 billion this year provides ample flexibility for investment and debt management, even after a series of acquisitions.
Perhaps most importantly, IBM is one of the rare companies building real quantum hardware, with a goal of enterprise-ready systems by 2029. If achieved, this could unlock commercial applications far ahead of peers. For long-term investors, IBM remains both a turnaround story and a genuine contender in the next frontier of computing.
Salesforce (NYSE: CRM)
Salesforce has come to embody the software-as-a-service model, and its evolution has taken it far beyond its original roots in customer relationship management. Gardner highlights its Customer 360 platform, Data Cloud, and Agentforce as game-changers for businesses looking to convert raw information into actionable, AI-driven insights.
The company’s push into artificial intelligence is already paying dividends. Recurring revenue from AI and Data Cloud products has surpassed US$1 billion, marking a 120 per cent year-over-year surge. Deals increasingly include AI components as standard, making the technology core to Salesforce’s growth engine.
From a valuation standpoint, Salesforce is trading at roughly 22 times forward earnings, near the low end of its historical average. That multiple looks reasonable given the scale of its platform, the pace of margin expansion, and its ongoing shareholder returns. For Gardner, Salesforce has become the operating system for the modern enterprise, with AI firmly embedded in its future.
Brookfield Infrastructure (TSX: BIP.UN)
Brookfield Infrastructure represents a different kind of large-cap opportunity, rooted in essential services rather than high tech. The company’s portfolio spans pipelines, railroads, telecom towers, and data centres worldwide. Its latest quarter delivered a beat on expectations, with strength in both midstream energy and digital infrastructure.
The data segment, in particular, has become a growth powerhouse, up 45 per cent year-over-year. Recent investments in Indian telecom towers and fibre networks are paying off, while new deals such as a stake in Colonial Pipeline and a U.S. fibre business add further momentum. Together, those investments total US$1.3 billion.
At the same time, Brookfield is recycling capital effectively, generating US$2.4 billion in asset sales that free up cash without tapping equity markets. The stock currently yields about 5.5 per cent, and Gardner views it as undervalued relative to its history. With a global footprint and proven ability to allocate capital wisely, Brookfield Infrastructure remains a reliable compounder through economic cycles.
Conclusion
Brianne Gardner’s outlook reflects a pragmatic balance. Markets may be celebrating cooling inflation and resilient earnings today, but stretched valuations leave little margin for error. Her top picks — IBM, Salesforce, and Brookfield Infrastructure — embody a focus on quality, cash flow, and strategic positioning in technology and essential infrastructure. For investors looking ahead to year-end, these names represent resilience in a market that still has its share of unknowns.