words Al Woods
The popular FAANG (Facebook, Amazon, Apple, and Google) tech stocks took a beating in the latter half of last year after a record run at the beginning of the year.
The technology sector can be volatile and unpredictable, but it is one of the best growth opportunities for any investor. Take a look at these five stock picks in the tech sector that could be a solid investment opportunity.
Nvidia – NVDA
Nvidia shares have risen astronomically since 2016 with an all-time high achieved in October 2018. Despite that, the stock has been nearly cut in half. The decline of the cryptocurrency market was the most significant contributing factor to that decline, but NVDA was likely overvalued. Most of Nvidia’s business comes from gamers who want to upgrade their experiences to 4K graphics and VR. Nvidia’s datacenters and artificial intelligence applications make up another one-fourth of the company’s revenue. Despite the boom from cryptocurrency, Nvidia has plenty of room to grow.
Microsoft – MSFT
Microsoft is in the process of shifting itself to a service company. The company’s subscription-based Office productivity suite and Azure cloud-management platform are two prime examples of that. The continued revenue stream for its products means Microsoft is focusing on services rather than hardware. The Xbox division is not faring as well as the PlayStation division is for Sony, but Microsoft remains committed to the platform. The company just revealed a new digital-only Xbox that will help drive those recurring Xbox Live subscriptions among gamers.
Roku – ROKU
Ever since Roku’s September 2017 IPO, the company’s stock price has seen wild swings up and down. Those wild swings frighten away some investors, but the dust is starting to settle. Roku appears to be growing into its own as it licenses its name and software to TV manufacturers. Roku’s platform revenue from ads on the main screen of its interface increased revenues by 74% year over year.
Qualcomm – QCOM
Qualcomm’s legal battles with Apple have stymied revenue opportunities since 2014. Qualcomm’s focus on delivering 5G modems for smartphone manufacturers like Samsung will help provide record revenues for the company. The spat between Qualcomm and Apple looks to be coming to a close, too. Back in March, a jury in a San Diego federal court found that Apple infringed on three of Qualcomm’s patents. That jury awarded $31 million to Qualcomm for damages on phones sold between mid-2017 and 2018.
Twitter – TWTR
Twitter has a much smaller user base than social media giant Facebook, but it could become a growth machine in 2019. The company has been seeing daily average user growth slow down over the last few quarters, but that’s mostly thanks to Twitter focusing on shutting down fake accounts. Twitter turned a profit by engaging users multiple times per day by giving them a rotating bevy of topics to discuss. Looking for more recommended tech stock picks? Be sure to check out the Motley Fool stock advisor review. You’ll find plenty of tech gems that are on the rise.
