Could These Tech Stocks Be Worth Adding To Your Watchlist?
Tech stocks have had one of the hottest runs in 2020. How will these stocks continue to fare this year? There is certainly a lot of potential for them in the stock market this year. The reason for this is because of the wide reach that the tech industry has. Essentially, the tech industry comprises businesses that sell goods and services in software, computers, artificial intelligence, and other industries that fall under the broader category of information technology (IT). Some of the top tech stocks we have today are also companies with the largest market capitalizations in the world such as Apple (AAPL Stock Report) and Microsoft (MSFT Stock Report).
Although tech stocks may come with higher premiums, they do promise growth that other industries could only dream of. This has certainly benefited investors to have bet on them in the last few years. You may ask what fuels this growth? If you look at the news every other day, you hear about the newest and latest tech offerings. At the very core of it, we have tech that helps elevate almost every aspect of our lives. We are enjoying the highest quality of life in human history after all.
Is There Big Potential In Tech Stocks This Year?
With the grim milestone of 350,000 deaths on Saturday due to the coronavirus pandemic, the U.S. also recorded a new single-day high of almost 300,000 cases on the same day. While vaccine rollout is already taking place, it will likely take months to years before the entire country can be vaccinated. Seeing how the pandemic has accelerated the adoption of tech in 2020, this adoption could see further growth as we start the year 2021. With that in mind, here is a list of the top tech stocks to watch in the stock market today.
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Best Tech Stocks to Watch Right Now
Top Tech Stocks To Buy [Or Avoid] This Week: Micron Technology Inc.
Micron (NASDAQ: MU) is a world leader in innovative memory solutions that transform how the world uses information. These include random-access memory, flash memory, and USB flash drives. The company’s shares are up by over 50% since November. Today, shares of Micron Technology are up by more than 5% as of 10:18 a.m. ET after Citigroup upgraded the stock by two notches.
The company is also set to announce its first-quarter results on January 7, 2021, so there is certainly a lot of anticipation surrounding the company. In the company’s full-year financials posted in September last year, the company reported a revenue of $6.06 billion, an 11.3% increase year-over-year. Besides, the company posted a net income of $988 million or diluted earnings per share of $0.87. These strong earnings came from solid DRAM sales in cloud, PC, and gaming consoles.
Last month, Micron announced that it is increasing its revenue, gross margin, and EPS guidance for its first-quarter fiscal guidance. The company expects revenue of $5.70 billion to $5.75 billion. This is likely due to the pandemic causing spikes in demand from cloud companies. Micron in turn is trying to service a huge increase in the e-commerce and online streaming sectors. All things considered, is MU stock worth adding to your portfolio?
Top Tech Stocks To Buy [Or Avoid] This Week: Nvidia Corporation
Nvidia (NASDAQ: NVDA) is a California based company that designs graphics processing units (GPU) for the gaming and professional markets. The company seems to be benefiting from strong demand for its GPUs for gaming PCs and data centers. Nvidia processors are used in high-performance computing environments.
While we would attribute gaming as the primary driver for the demand for Nvidia’s GPUs, the sudden increase in cryptocurrency valuations has added another element to GPU consumption. This could benefit the company in the long run. Some analysts are also expecting Nvidia to hit a price target of $600 a share. The company’s shares are now being traded at $536.19 as of 4:00 p.m. ET. Shares of Nvidia have more than doubled in the last year.
In the company’s third-quarter fiscal posted in November, investors were delighted to see that the company’s total revenue was up by 57% year-over-year at $4.73 billion. Nvidia’s gaming segment contributed a record $2.27 billion, a 37% increase year-over-year. Its data center segment also hit a record high of $1.90 billion, a growth of 162% compared to a year earlier. This is no surprise as the RTX 30 Series received overwhelming demand. The RTX 30 Series has been receiving rave reviews as it offers the greatest-ever generational leap in performance in the company’s history for cost-competitive prices. With such interesting developments surrounding the company, will you consider having NVDA stock on your watchlist?
Top Tech Stocks To Buy [Or Avoid] This Week: Qualcomm
Qualcomm (NASDAQ: QCOM) is a multinational tech corporation that is based in California. It creates semiconductors, software, and services related to wireless technology. As investors continue to find ways to profit from the integration of fifth-generation (5G) networking services, could Qualcomm be the next big thing? Qualcomm has just announced its Snapdragon 480 5G, the company’s latest 5G processor which will power budget smartphones. This would allow the company to provide 5G connectivity to the broader budget smartphone market.
The company’s shares are up by over 100% since March last year and for good reason. Telco companies like AT&T (T Stock Report) and Verizon (VZ Stock Report) have spent billions of dollars to develop their 5G networks across the U.S. Furthermore, many smartphone companies have begun selling 5G capable smartphones. 5G connectivity is expected to be easily 10 or more times faster than the current 4G technology, so this could very well be only the beginning for Qualcomm’s long-term growth.
In the company’s latest quarter financials in November, Qualcomm reported an impressive revenue of $8.346 billion, a 73% increase year-over-year. The company also posted a net income of $2.96 billion or diluted earnings per share of $2.58. This impressive quarter was coming from the investments Qualcomm made into its 5G segment. With that said, the company is well-positioned for growth in 2021 and beyond. Will this be enough for you to have QCOM stock on your portfolio?