If you ask any seasoned investors about top industries to invest in now, tech stocks could be the first thing they say. Like it or not, technology makes up a huge part of the world around us now. From the device you are reading this article on to the internet connection facilitating it, all this would not be possible without tech. That is why top tech stocks have been having a blast of a year in the stock market so far. Thanks to the current pandemic, there has been a sudden burst of problems for the general public to deal with. As a result, the tech industry swoops in to save the day.
Moreover, companies can leverage tech to further create value for customers. It definitely presents a lucrative opportunity for eager companies that have the means to do so. For instance, earlier this year Walmart (WMT Stock Report) announced a new partnership with Shopify (SHOP Stock Report). The deal opened up Walmart’s Marketplace to Shopify’s small merchants. More recently, AT&T’s (T Stock Report) Warner Bros announced that it will be releasing its 2021 movies on HBO Max on the same day they play in theaters. This is another example of how a company adapted its business with tech.
It is clear that companies are focusing on their tech innovations this year. The problem for investors is how to pick out the ones worth watching. This dilemma arises because there are so many emerging tech hopefuls. At the same time, existing tech companies appear to be bolstering their portfolios as well. To offer some help, here is a list of top tech stocks for you to consider now.
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First, up the list, Broadcom (AVGO Stock Report) is a manufacturer and global supplier of semiconductors. The company also designs and develops infrastructure software products. Notably, the company’s share prices are up by 18% since early November. Broadcom will release its fourth-quarter fiscal later today.
In its previous quarter fiscal released in September, the company reported a 5% rise in revenue year-over-year. On top of that, the company announced a quarterly cash dividend as well. Moving forward, CEO Hock Tan had this to say, “Our outlook for the fourth quarter reflects a strongly anticipated ramp in wireless, as well as the continuing surge in demand for networking from cloud and telecom customers, more than offsetting expected softness in enterprise.” The company appears to have its financials in order for the most part while weathering the effects of the pandemic so far. Investors could be wondering if Broadcom could be set to pick up momentum in the coming months.
The company recently launched a new cybersecurity program. The program integrates Broadcom’s cybersecurity solutions and its partners’ resources along with their in-country expertise. According to the company, this will allow it to “offer the best-in-class customer experience”. This will primarily focus on commercial enterprise clients. It appears that Broadcom is trying to expand its market reach. Could this play well for AVGO stock in the long run? Time will tell.Top Tech Stocks To Watch In December: Lattice Semiconductor
It has been a great year for Lattice (LSCC Stock Report). This is illustrated by its share prices rising by 113% year-to-date. For some context, it is a manufacturer of high-performance programmable logic devices. The company is based in Oregon and also offers a plethora of digital solutions for its customers ranging from the Edge to the Cloud.
In its third-quarter fiscal report in October, the company saw a 0.4% drop in total revenue year-over-year. This was accompanied by a 6% decrease in net income as well. There could be another reason why investors appear to be confident in LSCC stock. This lies in the launch of two key offerings, namely Lattice Sentry and Lattice SupplyGuard, in the same quarter. First, Sentry serves to reduce customers’ time-to-market. Second, the SupplyGuard service protects against counterfeiting and overbuilding on supply chains. Investors may believe that the latest products will help the company come out on top in the next quarter.
Earlier this week, Lattice launched its second generation of security solutions. According to the company, this version brings heightened security features. Additionally, it also provides fast, power-efficient processing which allows for real-time troubleshooting of server problems. With all these initiatives, the company appears to be focused on long-term growth. Do you think this will benefit LSCC stock moving forward?Top Tech Stocks To Watch In December: Hewlett Packard Enterprise
Third, we have Hewlett Packard Enterprise (HPE Stock Report). The company operates via a platform-as-a-service type business model. Through this, it helps customers manage their data and applications across different digital mediums. This integration of data technology and the company’s financial services provides a neatly wrapped package for companies.
Hewlett Packard’s share prices are up by a respectable 54% since the lows in March. Let us take a closer look at its financials. In its recent quarter fiscal reported last week, the company’s total revenue rose by 6% from the previous quarter while being flat year-over-year. In fact, the company’s growth businesses showed great momentum over the quarter. Its computing and cooling system product lines saw a 25% increase in revenue year-over-year. In addition, its annualized recurring revenue from its products and services rose by 30% from a year ago. These positive developments are very encouraging indeed. The pandemic has forced more businesses to rethink their remote work and business continuity strategies. As a result, HP appears to be benefitting.
Yesterday, the company announced that it is accelerating its mainstream enterprise adoption of high-performance computing (HPC). Its HPC solutions will be made available on the company’s cloud service, HPE GreenLake. This consolidation of its product lines provides a more powerful and flexible pay-per-use cloud experience for its customers. This is a fantastic play by the company as it improves the user experience while bolstering its current offerings. Do you think HP’s focus on customer growth momentum will benefit HPE stock going into 2021?