Since the 1990s, technology stocks have been some of the best performers. They have a solid ROI and outperformed the S&P 500 for years.
The question is which stocks investors should choose for their portfolios. One of the problems is that the best technology stocks often become laggards after the companies mature. According to Eric Tyson, the author of Investing for Dummies, the ROI of Microsoft stocks was 66,000% between 1986 and 1996. However, Microsoft is no longer the rip-roaring leader of the tech sector.
Investing in the stock market in the past year has come with volatility. Fears brought about by a pandemic and the possibility of a weak economy shook the market in April and May. If you’re looking for opportunities, you may find them in the tech sector where you can discover the best 5G stocks to invest in or other up-and-coming tech symbols, like CSCO, NVDA, NTAP or AAPL.
Cisco Systems – CSCO
During the dot-com boom in the late 90s, Cisco was one of the most valuable companies in the stock market due to its sales of networking products. After the crash, CSCO fluctuated in a steady range between about $12 and $28. Since 2016, price action for the stock has started to edge higher towards the $50 level. While it still hasn’t reached its all-time high, the lower price does offer dividend investors an attractive yield, which is at the higher end for the sector. One positive aspect of the company that could help fuel the price higher is their move towards subscription-based sales, which may help provide higher revenue growth. The 15-year base gives this stock a strong foundation to work with.
Nvidia – NVDA
During 2016 through 2018, Nvidia was one of the favorite tech stocks on Wall Street due to the popularity of its video cards. Individuals who decided to try cryptocurrency mining and cash in on the boom in Bitcoin’s price were buying up all of the inventory Nvidia could produce. When crypto prices plummeted, the enthusiasm for mining dwindled as well and cut the share price in half. However, the future is bright for this tech stock as it is focusing on AI, where its chips can be used to help process information. In the past few months, the share price for NVDA surpassed its all-time high and jumped to a level near $375. If this tech stock decides to pull back, it may be worth buying the dip.
NetApp – NTAP
NetApp is a competitor of EMC and IBM and recently changed its focus from hardware towards software. Its offerings of cloud data services help provide several different types of customers with modern workplace solutions. The price for shares of NTAP was on a tear from 2017 to the beginning of 2019, moving from $20 to around $90. However, even before the coronavirus crisis hit, the price was moving lower to the $45 level. It bounced back to $64 and then crashed down again when the pandemic began to about $36. This tech stock is trending higher over the long-term after reaching a high near $150 during the dot-com era. It may be one to watch as remote working becomes more prevalent. Locating sectors where there’s a growing demand for the product, like the best 5G stocks to invest in, may provide you with companies that see their sales and revenues thrive. According to the professionals at Money Morning, “5G networks are the next evolution of wireless connection. This isn’t just an upgrade; it’s revolutionary. The speed of 5G is expected to be around 100 times faster than 4G.”
Apple – AAPL
Over the past ten years, shareholders of Apple have been rewarded handsomely. As the smartphone continues to grow in popularity, this technology company continues to be a leader in the industry. While several companies have tried to mimic its success, none have achieved the type of growth this company has experienced. Apple has always been an innovative company and has been launching new services, such as Apple TV+, Apple Pay and Apple News. Like other companies, the share price of AAPL took a hit between March and April but quickly rebounded to surpass its highs. Currently exceeding the $350 range, it’s been an excellent stock to buy on dips or breakouts.
Choose the Right Tech Stocks to Boost Your Portfolio ROI in 2020
Locating tech companies with innovations, increasing revenues or lower price action due to outside influences may provide you with better results for your investment portfolio in 2020 and beyond.