[Editor’s note: “7 Game-Changing Tech Stocks to Buy Now” was previously published in March 2020. It has since been updated to include the most relevant information available.]
Tech stocks have had a pretty wild ride in the past 18 months. Things began to stabilize earlier this year, even with the biggest wild card of 2019, the U.S.-China trade war. And just as that dark cloud appeared to be lifting, the coronavirus tanked markets and ushered in what could be a major economic slowdown.
Lots of companies are giving back gains, and, what’s more, investing in innovation is something that is less likely going forward.
The bullish atmosphere that has dominated came at a time when we’re were seeing some of the biggest tech innovations of our lifetimes.
Below are the seven best tech stocks to add now. They were already going strong before the crash and when this correction is all said and done, they’ll bounce back in a big way.
Best Tech Stocks to Buy: Lattice Semiconductor (LSCC)
Lattice Semiconductor (NASDAQ:LSCC) may only have a $2.5 billion market capitalization, but it’s been a big winner in the past year.
The stock recovered along with the rest of the chip sector, but 2020 saw it trading in range before the crash. Since then, however, it’s come back strong, returning to its pre-crash numbers and adding nearly 20%.
It’s making strong progress on its data center and 5G base station markets, which are big growth opportunities.
LSCC is a leader in field-programmable gate arrays (FPGAs) and it was hurt by the trade war because it does a lot of business with China. Now that the war is ending and it looks as if China is going to be the first to recover from the virus, LSCC should recover nicely.
Enphase Energy (ENPH)
Enphase Energy (NASDAQ:ENPH) is an interesting company because it’s really a next-generation tech firm.
It doesn’t do computers or telecom or any of the things we usually associate with tech. It’s fundamentally all about tech for renewable energy. It’s a hardware company — and hardware is how I like to play all the major tech trends of our lifetime.
Its main business is making microinverters.
You see, when you generate renewable energy you generate direct current. But the electrical systems in a house or business run on alternating current. Inverters change the power generated to power that can be used.
In smaller uses, like homes, microinverters are used. And that’s where ENPH makes its money. And it’s really making money.
The stock has been riding like a rocket since the crash, nearly doubling year-to-date.
ManTech (NASDAQ:MANT) is fundamentally an IT firm for the intelligence community as well as the U.S. military.
If you need secure communications and state-of-the-art functionality, MANT will deliver it. Obviously, there are larger defense firms that have these capabilities, but they usually operate managing systems for the armed services.
MANT has built a niche in the intel community. And much of the intel budgets are off the books, meaning intelligence organizations often get the funding and equipment they want without having to deal with annual budget processes.
As the military retools for a digital future and an insecure world demands more intelligence efforts, MANT is very well positioned.
Plus, it’s a niche company, which means big growth is easier to attain. This year the stock took it on the chin, and even though it has recovered slowly, it looks as if it might be a great dip buy.
Axon Enterprise (AAXN)
Axon Enterprise (NASDAQ:AAXN) is the new name of the company that makes electrical weapons for personal defense, aka tasers.
It also has other lines of equipment that complement these weapons for both personal and professional use.
One of their most popular products is its line of body cameras, which supplement the deployment of tasers among security personnel. Axon has also made forays into the software market for evidence management and reporting.
The stock looks set to be part of the recovery as the demand for new policing techniques rises around the United States, AAXN solutions will continue to grow in demand. It’s also a potential acquisition play. And I’ve got more where that came from.
Universal Display (OLED)
Universal Display (NASDAQ:OLED) as its ticker implies, is all about organic light-emitting diodes (OLED). These low-power displays are in demand wherever there is a glowing screen.
And its uses are continuing to grow. The new generation of smartphones is moving toward the use of the technology and large-screen televisions and computer monitors are already there. We’re still transitioning from LED to OLED, but that transition is well on its way. And then we’ll have OLED screens for a long time before a replacement comes along.
The stock was holding the line for much of this year, and once the markets gain their feet, that growth is sure to continue. As more and more companies — and households — adopt the “mother of all technologies,” trust me: That growth is just getting started.
Heico (NYSE:HEI) is an aerospace and electronics firm that has been around since 1949.
And it’s headquartered in Hollywood, Florida. That means it was there, delivering parts and systems to the military before NASA was even formed. Plus, Heico continued to grow along with the space agency and the aerospace industry inside and outside the government.
Today, when you think about the Space Race and the private firms that are now launching rockets and satellites, you should also think about the companies that provide them with equipment and materials.
They need to be tried and tested — and above all, trusted. Few go back as far as HEI.
The stock was absolutely brutalized in the latest downturn and is a legitimate bargain now.
KLA (NASDAQ:KLAC) is a company that supplies specialized equipment and materials to chipmakers. One of its more recent focuses is the nano-electronics industry, which is a growing sector.
Because smaller is always better when it comes to chip technology, chips are always challenged to become smaller. We’re down below 10 nanometers for new chips from the biggest chipmakers — that’s about the size of 20 silicon atoms, or a millionth of a millimeter.
This nano-scale race is very important in the chip industry, and KLAC is one of the key companies helping create smaller, more powerful chips.
KLAC is a key holding in the list of recommended high-growth investments I publish at Growth Investor.
Ultimately, better and faster hardware is what enables the better and faster tech solutions that make our daily lives run more smoothly and efficiently. That’s what I’ve got an eye on as the ultimate growth investment in 2020 and beyond.
‘The Mother of All Technologies’
Up until now, technologies have certainly made our lives easier and more efficient … but with a lot of room for human error. People trip over cords, spill their coffee and get tired.
Artificial intelligence does not.
If that sounds futuristic, well then, the future is already here. If you use apps like Netflix (NASDAQ:NFLX), TurboTax, QuickBooks, Zillow (NASDAQ:Z) or even an email spam filter, then AI is already helping your day run more smoothly. And as scientists find even more applications for artificial intelligence — from healthcare to retail to self-driving cars — it’s incredible to imagine how much data will be involved.
To create AI programs in the first place, tech companies must collect vast amounts of data on human decisions. Data is what powers every AI system.
So any one company that can help with customers’ data issues is the one company that’s most worth investing in.
You don’t need to be an expert to take part. I’ll tell you everything you need to know, as well as my “buy” recommendation, in Growth Investor. My No. 1 stock for the AI trend is still under my buy limit price — so you’ll want to sign up now. Get in while it’s still cheap.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.