Looking For The Best Tech Stocks For Your 2021 Watchlist? 3 For Your List.
It has been a fantastic year for tech stocks. Rightfully so, they have outperformed most of the stock market amidst the chaos of the coronavirus pandemic. This is likely thanks to new challenges the world faced amidst transitions involving digital acceleration and social distancing. Because of how big the ‘tech’ industry is, there was naturally a solution to be found for most of these problems. We can see that tech companies fitting the needs of the public during these times have stepped up. Evidently, their stocks reflect how profitable they have been. We just have to look at the likes of Zoom (ZM Stock Report) and Spotify (SPOT Stock Report).
However, with more and more people receiving Pfizer’s (PFE Stock Report) vaccine, we could see user behavior changing once again. Once the coronavirus pandemic is more controlled, one can imagine that the needs of the public will change to a certain extent. Perhaps that could lead to the rise of under-the-radar tech stocks. Such is the nature of the tech industry, where one piece of tech could be revolutionary for a time and irrelevant soon after. Regardless, only tech companies that stay ahead of the curve will be able to stand out amongst the sea of tech stocks right now.
That is where the challenge lies for new and seasoned investors alike. With so much happening in the tech space, it can be hard to keep track of which companies are making moves. In line with that, here is a list of the top tech stocks to watch in 2021.
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Top Tech Stocks To Watch In 2021: Magna International Inc.
Right off the bat, we have Magna (MGA Stock Report). For the uninitiated, Magna is a Canadian mobility tech company for automakers. It produces automotive systems, assemblies, modules, and components. More importantly, it supplies an impressive list of automotive makers. These include Tesla (TSLA Stock Report), General Motors (GM Stock Report), and Ford (F Stock Report). Notably, the company’s share prices jumped by 12% at Wednesday’s opening bell which marked a new all-time high. It took a breather after that and ended the trading day up 9%. This is likely thanks to the news of Magna’s latest collaboration on December 22.
LG Electronics and Magna announced a joint venture to manufacture e-motors, inverters, and other related e-drive systems for electric vehicles (EV). It will see the formation of a new company tentatively called LG Magna e-Powertrain. On one hand, LG Electronics is a force to be reckoned with in the field of EV component development. On the other hand, Magna’s expertise in electric powertrain systems and world-class automotive manufacturing is formidable as well. The joint venture marks a powerful alliance in the EV industry. Naturally, investors would be delighted to hear this news as the company is expanding its EV portfolio. Considering the growth of the industry, this is a spectacular move by Magna.
Its third-quarter fiscal report in November also explains this move. Magna brought in $9.13 billion in total revenue for the quarter. Furthermore, the company saw a 94% year-over-year rise in cash on hand which amounted to $1.5 billion. The company intends to drive sales up after being impacted by the coronavirus pandemic earlier in its fiscal year. Could all this see MGA stock kicking into high gear in 2021? You be the judge.
Top Tech Stocks To Watch In 2021: Nvidia
Next up, we have gaming tech giant Nvidia (NVDA Stock Report). The California-based tech company designs graphics processing units for the gaming and professional markets. It also manufactures system-on-a-chip units for the mobile computing and automotive market. To point out, NVDA stocks are surging over 160% since the stock market crashed in March. The company’s broad portfolio based in several key growth industries has brought about its best year on the stock market so far.
Accordingly, Nvidia’s success is also reflected in its recent quarter fiscal posted in November. The company saw a 56% jump in total revenue year-over-year. It also reported a 46% rise in earnings per share and a 48% leap in net income over the same period. CEO Jensen Huang described it best, “NVIDIA is firing on all cylinders, achieving record revenues in Gaming, Data Center and overall.” With such an impressive performance, it is no wonder that investors are so eager to hop on to the NVDA stock train. On top of all this, the company appears to be keeping up its momentum.
Last week, Nvidia launched a new storefront on Amazon Web Services (AWS) Marketplace. The collaboration will bring Nvidia’s software resources to the platform. AWS Marketplace will now feature NVIDIA’s most popular GPU-accelerated AI software. These offerings include solutions for the fields of healthcare, conversational AI, computer vision, data science, machine learning, and high-performance computing. With a collaboration of this scale, it is not surprising if more investors add NVDA stock to their 2021 watchlists. Will you be doing the same?
Top Tech Stocks To Watch In 2021: Apple Inc
Few can boast the same global recognition as tech goliath Apple (AAPL Stock Report). The company has a lot going on for itself right now. Its flagship consumer tech offerings are flying off shelves throughout the holiday season. This week, AAPL stock appears to be testing its September highs. And that is likely thanks to the company’s revitalized autonomous vehicle plans.
According to Reuters, Apple is reviving its self-driving car project and is targeting a 2024 release. This could see the company releasing its own autonomous vehicle which houses its proprietary battery tech. It is a clear challenge to its rivals Google (GOOGL Stock Report) and Amazon who have their own autonomous vehicle projects in the form of Waymo and Zoox respectively. Considering it is one of the few companies with the funds to jump into the industry like this, investors are clearly thrilled. It seems to me that Apple is striving to keep up with its competitors.
However, the company will have to face an onslaught of challenges before it makes this profitable. Even Tesla took 17 years before being able to turn a sustained profit with its cars. Regardless, the company’s deep pockets could play a major role in overcoming such issues. In its fourth-quarter fiscal reported in October, the company saw $64.5 billion in total revenue for the quarter. It also reported having more than $191 billion in cash and marketable securities. Given all of this, do you think AAPL stock could continue to bring investors long-term gains?