U.S. markets closed
  • S&P 500

    -4.88 (-0.11%)
  • Dow 30

    +73.94 (+0.21%)
  • Nasdaq

    -125.50 (-0.82%)
  • Russell 2000

    -4.92 (-0.21%)
  • Crude Oil

    +1.48 (+1.79%)
  • Gold

    +11.20 (+0.63%)
  • Silver

    +0.22 (+0.91%)

    +0.0018 (+0.15%)
  • 10-Yr Bond

    -0.0210 (-1.25%)

    -0.0036 (-0.26%)

    -0.5280 (-0.46%)

    -2,131.38 (-3.41%)
  • CMC Crypto 200

    -49.69 (-3.31%)
  • FTSE 100

    +14.25 (+0.20%)
  • Nikkei 225

    +96.27 (+0.34%)

Boost Your Portfolio With These 3 Promising Tech Stocks

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Modern technologies are offering us amazing resources, making lives more efficient and increasing work productivity. Thus, with the use of technology increasing rapidly across the world, the investment opportunities have also risen manifold.

Rising Tech Adoption

The technology sector excelled last year, backed by rapidly increasing dependency on online solutions for work. Thus, with changing habits and technology companies disrupting older markets and lifestyles, long-term revenue growth for players belonging to the space is inevitable.

Migrating operations to the cloud has been becoming a common affair for every company across the world. The pace has picked up since the onset of the coronavirus pandemic. With cloud computing and remote work becoming essential, there has been a rise in demand for cybersecurity services. Thus, to support computing power, demand for companies that design and manufacture computer chips has skyrocketed.

With technology companies becoming a great long-term investment option, we have employed our proprietary stock screener to zero down on three prospective stocks. All the three firms carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

3 Stocks in the Spotlight

Microsoft Corporation MSFT is the second largest provider of cloud infrastructure. Of the total cloud infrastructure services spending in the second quarter of 2021, the share of Microsoft Azure was 22%, only lagging Amazon Web Services (AWS) that accounted for 31% of the total spending, according to Canalys – a leading analyst firm. In terms of revenue growth in the June quarter, Microsoft Azure, however, outpaced AWS.

In all of technology, Microsoft offers the most comprehensive cloud software backed by its leading cloud products comprising Azure, Office 365 and Dynamics CRM. The company has gained 33.6% so far this year, driven by strength in its Azure cloud platform amid accelerated global digital transformation. For fiscal 2022, the company has witnessed upward earnings estimate revisions in the past 60 days, reflecting earnings growth potential.

NVIDIA Corporation NVDA, a semiconductor chip company, is among the world’s leading producers of graphics processing units (GPU). Being a pioneer in GPU production, the company has gained advantages over other players in the space in designing semiconductors for the AI industry. Since companies across the world are spending massively on AI, NVIDIA is well placed to generate significant cashflows in the long term.

While designing GPUs for high-end computer game graphics, the company has embarked on a venture. The company, headquartered in Santa Clara, CA, continues to have a strong foothold within its key gaming markets. So far this year, the stock has gained 69.9%, backed by contributions from gaming, data center and professional visualization markets.

ASML Holding NV ASML is a well-known player in the market since it is a leading supplier of photolithography machines to semiconductor manufacturers. So far this year, the stock has gained 75% on mounting demand for chip manufacturing equipment.

The company will bank on its fat order book, which is at a record 8.3 billion euros, comprising 4.9 billion euros for extreme ultraviolet (EUV) systems. Thus, the company is well-positioned to generate significant cashflow over the long run. The stock has witnessed upward earnings estimate revisions for 2021 and 2022, respectively, in the past 60 days.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
ASML Holding N.V. (ASML) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research