Do You Have These Tech Stocks On Your Watchlist?
The first few months of 2021 saw many tech stocks peaking at all-time highs in February. Despite taking a breather since then, things may be looking up for tech companies again. After all, continuous innovation in this sector provides investors with reasons to keep their eyes on top tech stocks. On Friday, there was news of a monkey with brain implants having the ability to play computer games. That was thanks to the technology of Neuralink, a brain implant company owned by Tesla’s (NASDAQ: TSLA) CEO Elon Musk. In detail, Neuralink is developing Bluetooth-enabled implantable chips that can communicate with computer receivers. The end goal is to enable people with paralysis to use a computer or phone with their brain activity alone.
With chip shortages plaguing many industries, chip maker stocks such as Intel Corporation (NASDAQ: INTC) and Taiwan Semiconductor Manufacturing Company (NYSE: TSM) announced that they will be investing huge amounts into their chipmaking capacity. Essentially, this could help prevent another shortage of chips in the future. In March, Intel announced that it will be investing $20 billion into chip-making facilities. Meanwhile, TSM also announced that the company will be investing $100 billion into advanced chips over the next three years to keep up with rising demand. This clearly shows that tech companies are still continuously expanding. It is safe to say that their confidence in the industry is with good reasons. So if tech stocks piqued your interest, here are four worth watching out for.
Top Tech Stocks To Buy [Or Sell] Now
- Alibaba Group Holding Ltd (NYSE: BABA)
- Sony Corp (NYSE: SONY)
- Microsoft (NASDAQ: MSFT)
- Nvidia Corporation (NASDAQ: NVDA)
Alibaba Group Holding Ltd
First on this list is technology giant Alibaba. The Chinese e-commerce giant grabbed the headlines on Saturday but not for the best of reasons. The company was hit with the highest ever antitrust fine imposed in China. The country’s regulator announced that it had slapped a fine of $2.8 billion on the tech giant. China’s State Administration for Market Regulation (SAMR) said that Alibaba abused its market dominance by punishing merchants that sell their merchandise on other platforms. The company has been punishing merchants if they use any rival sites.
Normally, this would be a huge cause of concern. However, if we take a step back and look at the bigger picture, the penalty is not even 1% of Alibaba’s market cap. It’s worth pointing out that the long-term potential of the company remains largely intact. E-commerce has been growing well even before the pandemic. With the pandemic changing people’s lives and routines, realizing how accessible e-commerce is. This has accelerated the growth of the industry. Now that Alibaba is able to move beyond this issue, would you be buying BABA stock?
Sony Corporation is a Japanese multinational conglomerate that engages in the development, production, and sale of various electronic equipment and devices. It is also involved in the development and distribution of many types of entertainment. On April 8, its subsidiary Sony Pictures Entertainment (SPE) announced a multi-year, exclusive first pay window licensing deal with Netflix (NASDAQ: NFLX) in the U.S. for theatrically released SPE feature films. The deal covers titles including Morbius, Uncharted, the sequel to Spider-Man: Into the Spider-Verse, and future installments of Venom and Spider-Man.
Earlier in April, Sony confirmed the acquisition of Som Livre, owner of the biggest domestic-born record label in Brazil. Som Livre is home to many of Brazil’s most popular artists including Marillia Mendonca, Jorge & Mateus, and many more. This goes to show Sony is still actively expanding its territories despite being one of the market leaders in its industry.
Also, the company boasts decent financial figures over the nine months ended December 31, 2020. Its revenue increased by 4% to $61.8 billion and net income skyrocketed by an impressive 87% to $9.7 billion. Thus, it may not come as a surprise that SONY stock has risen by over 40% in the past 6 months. With all these in mind, would you consider buying SONY stock?
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Next on the list would be tech giant Microsoft. Besides its operating systems and productivity software, the company also has a strong presence in cloud computing and video game consoles. CNBC recently reported that Microsoft is in advanced talks to acquire the speech-recognition company Nuance Communications (NASDAQ: NUAN). Microsoft first approached Nuance in December last year. And the deal could finally be materializing. Nuance would have an equity value of $16 billion. That would make it Microsoft’s second-largest acquisition after the $27 billion purchase of Linkedin in 2016. The acquisition of Nuance could expand Microsoft’s capabilities in invoice software.
MSFT stock has been performing well in the stock market, rising 17% year-to-date. This is noteworthy at a time when some tech stocks appear to be losing investors’ interest. Financially, Microsoft is performing relatively well amid the pandemic. Most of its divisions like cloud computing, gaming, and virtual reality have flourished in the past year.
Recently, the company also acquired the contract to build more custom HoloLens augmented reality headsets for the U.S. military. The contract for over 120,000 headsets could be worth up to $22 billion over the next 10 years. With such exciting developments, do you think MSFT stock can continue its momentum?
Finishing off the list is Nvidia, the world leader in graphics processing units (GPU). For those unfamiliar, the company designs GPUs for the gaming and professional markets. In addition, it also manufactures system-on-a-chip units for the mobile computing and automotive markets. As we are all aware, games and animations alike have improved tremendously over the years. This is largely due to the improvement in graphics which is directly linked to the continuous improvement of processing architecture and continuous R&D.
With the rise of cryptocurrency, Nvidia is also not missing out on the party. The company can satisfy the demands from crypto-miners with its new crypto-mining specific GPUs. In March, Hut 8, a cryptocurrency mining company focused on mining bitcoin purchased $30 million worth of Nvidia’s new crypto mining-specific GPUs. This is to help the company expand into mining other cryptocurrencies besides bitcoin. Given the widespread applications for Nvidia’s products, will you consider adding NVDA stock to your watchlist?