3 Terrific Tech Stocks to Buy for Next Year

3 Terrific Tech Stocks to Buy for Next Year

Posted On December 2, 2020 2:45 pm

Investors have been on an exciting ride this year. The market plummeted in March, at the onset of the pandemic in the United States, and quickly rebounded throughout the summer, driven by tech stocks benefiting from the stay and work from home trends.

However, the rally in tech stocks recently slowed down, as three vaccine candidates provided hope that we could finally return to normal.  Investors rotated from technology stocks into companies that were beaten down during the pandemic.  Though this trend may continue into December, I believe soaring cases of COVID-19 will continue to be a significant driver for technology stocks as we enter the new year.

That’s why it’s prudent for savvy investors to consider adding solid technology companies to their portfolios.  Today I’m going to highlight three such companies: NVIDIA Corporation (NVDA – Get Rating), Logitech International S.A. (LOGI – Get Rating), and Amkor Technology, Inc. (AMKR – Get Rating).

NVIDIA Corporation (NVDA – Get Rating)

NVDA has certainly benefited from the coronavirus-induced stay-at-home wave, with the stock up 128.1% year to date. Unlike many of its technology peers, it was also up 6.9% in November. The company is the leading designer of graphics processing units that enhance the experience of computing platforms.

NVDA has been acquiring companies to advance its AI capabilities. It completed the acquisition of Mellanox Technologies earlier this year and is looking to close a $40 billion bid for ARM Holdings. It is also benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues. Its GPU capabilities offer greater processing speeds for expanding AI workloads for enterprise customers.

It also sees a surge in Hyperscale demand, which benefits the company’s Data Center business. The expansion of NVIDIA GeForce NOW is expected to drive its user base. Solid uptake of AI-based smart cockpit infotainment solutions is also a boon. Moreover, collaboration with Daimler-owned Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space.

NVDA has a strong history of sales and earnings growth and is highly profitable, with a return on equity of 25%. The stock is rated a “Buy in our POWR Ratings system. It holds a grade of “B” in Trade Grade, Buy & Hold Grade, and Industry Rank, three out of the four components that make up the POWR Ratings.

Logitech International S.A. (LOGI – Get Rating)

LOGI is a Switzerland-based provider of personal computer and mobile accessories for navigation, video communication, and collaboration, smart home, and other applications. Similar to NVDA, the stay-at-home trend boosted sales due to an increase in orders. In addition, the company’s thriving cloud-based video conferencing services is a key growth catalyst.

The company has also been benefiting from…

Continue reading at STOCKNEWS.com



About author

Leave a reply

Your email address will not be published. Required fields are marked *