Barring an extremely unusual development, President-elect Joe Biden will enjoy a transition to the White House in January. Though the outgoing Trump administration has vowed to fight voter fraud, the reality is that evidence is sorely lacking. Without making a substantive defense, the Electoral College is unlikely to flip the election for the current President. And that means we should start thinking about tech stocks that could outperform under a Biden White House.

Why tech stocks? First and foremost, the issue that probably sunk Trump’s chances was the handling (or mishandling) of the novel coronavirus pandemic. The tragedy here was that Trump had the opportunity to arguably be the greatest President in modern U.S. history. That’s because during periods of national sorrow, the American people look to the executive office for leadership. But it was here where “The Donald” inexplicably fell short.

More importantly, with new daily Covid-19 infections reaching absurd levels, the only way to effectively manage this crisis is through advanced technologies. In the pre-pandemic era, we relied on innovation to improve productivity and to enjoy many conveniences. But following the onset of the coronavirus outbreak on our shores, tech stocks have represented an economic lifeline. Otherwise, millions more would be seeking government assistance due to the sudden disruption.

However, tech stocks have played a pivotal role throughout this unprecedented torment and their issuing companies will continue to do so. For instance, consider the difficult situation that state and local jurisdiction must face regarding pandemic mitigation measures. If we’re going to get through this awful time, we’ve got to leverage all resources available to us. Fortunately, technology can act as a force-multiplier in moments of tremendous need.

Further, the Biden administration has a clear goal in the days ahead: succeed where the Trump administration failed. If the Democrats wish to keep power – remember, this was a tight election – they’ve got to win over the skeptical half of America. That means innovation is at a premium, which should benefit these tech stocks.

• Square (NYSE:SQ)
• IBM (NYSE:IBM)
• Nvidia (NASDAQ:NVDA)
• PayPal (NASDAQ:PYPL)
• Microsoft (NASDAQ:MSFT)
• Amazon (NASDAQ:AMZN)
• Switchback Energy Acquisition (NYSE:SBE)
• FLIR Systems (NASDAQ:FLIR)

Finally, all these names have significantly positive implications that extend beyond the pandemic. Therefore, it’s not just about the transition to power, though arguably, that plays an important role for these eight tech stocks to buy.

Square (SQ)

Before the novel coronavirus pandemic, “Eighty-three percent of small business owners across the U.S. say they will never stop accepting cash, according to new third-party research of 1,000 small business owners across the U.S.” This was a study conducted by Wakefield Research and commissioned by Square, the seemingly ubiquitous payment processing specialist and one of the most relevant tech stocks at this time.

On the surface, though, the pre-pandemic love affair with physical money wasn’t terribly conducive for SQ stock, which really makes cashless transactions for small businesses much more convenient. However, this once-in-a-century pandemic has the power to change minds. According to a Travis Credit Union survey, “58% [of survey respondents] plan to stop using cash completely after the Covid-19 pandemic.”

If so, small businesses have a tough option: adapt or die. Whether they like it or not, the customer is always right. Further, a Joe Biden administration will take this crisis much more seriously, likely prompting a national rethink. That’s positive for SQ stock as entrepreneurs look to Square to get them aligned with the cashless movement.

IBM (IBM)

Following the March doldrums earlier this year, several tech stocks found themselves enjoying tremendous upside momentum. One of the reasons can be tied to the influx of new traders, particularly millennials and older Generation Z members. As the Wall Street Journal pointed out, there was a time when seemingly everybody was a day trader. But that didn’t really do IBM much good relative to the competition.

After all, if you look at popular trading apps like Robinhood, many young investors gravitated toward companies with which they were familiar. IBM stock? Perhaps that’s something their parents or grandparents depended on, much like a rotary phone. Nowadays, “Big Blue” just doesn’t resonate with the in crowd. However, that could be a mistake.

With President-elect Biden promising to attack Covid-19 head-on, he’s going to need help and that involves technology. Utilizing IBM’s artificial intelligence platform Watson, the tech giant helped disseminate vital information regarding the pandemic. Down the line, IBM stock could benefit from the underlying company potentially leveraging its acumen for efforts such as contact tracing and healthcare data processing.

Nvidia (NVDA)

At the initial onset of the coronavirus, many people found themselves sitting at home due to shelter-in-place orders. Of course, it wasn’t just Americans that were impacted. Many European countries suffered severe restrictions relative to our own. Naturally, the boredom led to seeking out sources of entertainment, resulting in a huge increase in video game sales. Thus, Nvidia has been one of the most powerful names among tech stocks this year.

One of the compelling reasons to consider NVDA stock is that for those fortunate to be able to work from home, it’s really a pay increase. Sure, there is the argument that the lack of commuting has simply translated to employees logging in more hours. However, not commuting certainly has an economic benefit. Given the choice, I’d rather cut the commute and do more work.

Thus, more savings could be directed to entertainment options such as video games. This is especially significant because other entertainment options involving high-contact businesses have been effectively nullified.

Furthermore, NVDA stock isn’t just levered to entertainment. From increased demand to data centers to smart city infrastructures, we’re going to be dependent on technology in the post-coronavirus era. Thus, I like Nvidia to carry us through.

PayPal (PYPL)

If you’re looking for tech stocks to buy that will perform well under the Biden administration, PayPal should be one of your top ideas. Primarily, this is because its underlying service is aligned with the gig economy and independent work. Here’s what the New York Times had to say regarding the issue:

These fans of online work worry that they — and the country itself — will lose important benefits discovered during this unprecedented experiment in mass remote work. People who have never liked schmoozing with colleagues have found new heights of productivity away from meetings and office chitchat. People worried about climate change are eager to reduce their carbon footprints by avoiding commutes by car. And while many parents are desperate for schools and day care centers to reopen, some working parents are appreciating more time with their children.

While there’s a possibility that companies will resort to work-from-home operations on a semi-permanent basis, there’s also the chance that many other businesses will want a return to normal as soon as possible. That leaves many workers who thrived under remote work to forge their own independent path, which boosts PYPL stock.

Also, keep in mind that President-elect Biden will want to distinguish his coronavirus response to that of the Trump White House. This entails more restrictive measures, which should lift PYPL stock due to its contactless payment services.

Microsoft (MSFT)

Irrespective of whatever is going on, Microsoft under Satya Nadella’s leadership has stood out as a reliable idea among tech stocks – or any investment category for that matter. Mainly, this is because MSFT stock has exposure to multiple relevant businesses. For instance, its Xbox video game console has a wide following and that should be very evident during this holiday season.

Under a Biden presidency, confidence in MSFT stock will probably continue to grow stronger. Again, the underlying company’s video game and broader entertainment exposure will be huge, particularly if we must shelter in place again. Based on data from the Centers for Disease Control and Prevention, the seven-day moving average of new daily coronavirus cases breached the 148,000 mark on Nov. 14.

More importantly, Microsoft’s Software as a Service platforms will be crucial to employees who are working from home or those who will make the transition to the gig economy. Also, communication is more crucial than ever, which should bolster MSFT stock via the consumer tech firm’s Microsoft Teams platform.

Amazon (AMZN)

I hate to keep resorting to the same name repeatedly for tech stocks. However, Amazon has been absolute dynamite throughout this pandemic. Despite courting multiple controversies and much criticism – many of them not unwarranted – AMZN stock continues to tick higher. Currently, shares are trading inside a consolidation phase near all-time highs. But if the coronavirus outbreak worsens (which looks to be the case), then Amazon will likely charge higher.

Again, I understand that the online marketplace and business disrupter isn’t everyone’s cup of tea. However, we’re just dealing with reality at this point. According to data from the U.S. Census Bureau, e-commerce as a percentage of total retail sales hit 16.1% in the second quarter of this year, up 49% against Q2 2019.

To be fair, there is an argument to be made that e-commerce isn’t what it’s cracked up to be, especially when you consider consumers’ apprehensions about product return policies. However, because the Covid-19 crisis is so out of control, many consumers could just suck it up and shop online.

But if the e-commerce angle wasn’t enough, AMZN stock is also levered to cloud computing and other transformative technologies. Given that we’re facing an unprecedented crisis, I believe you can trust Amazon, even if you don’t want to.

Switchback Energy Acquisition (SBE)

One of the many special purpose acquisition companies (SPACs) we’ve heard so much about this year, Switchback Energy Acquisition is poised to become ChargePoint through a reverse merger. Currently, I’m hesitant on buying SBE stock right now due to the volatility. However, over the long run, I believe ChargePoint has serious potential, especially under a Biden White House.

According to the Biden Plan, the incoming administration has a plan to “Ensure the U.S. achieves a 100% clean energy economy and reaches net-zero emissions no later than 2050.” You’re not going to get that without electric vehicles. According to the Environmental Protection Agency, a “typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year.”

But the problem with EVs is mainstream integration. Often, potential consumers cite range anxiety and the lack of availability of charging stations (relative to gasoline stations, please stop typing) as obstacles to making the dive to the electric platform. But that’s where ChargePoint comes into play by bringing charging infrastructure closer to the sources of demand (i.e. work and home).

While full integration is still perhaps years away, SBE stock could be a discount relative to what’s coming next. I’d take a look if you don’t mind some volatility in your tech stocks.

FLIR Systems (FLIR)

Given that the Biden administration will have a vested interest in reversing many of President Trump’s policies, companies levered to the defense industry like FLIR Systems may not seem like a great idea for tech stocks to buy. However, if you like to think outside the box, you might just see the benefit in FLIR stock.

If you’ve listened to Biden speak, he frequently ends his speeches with a quick prayer to protect our service members. This is particularly important to him as the Bidens are military parents. He knows very well the sacrifices that the uniform requires, both of the wearer and their families. Therefore, FLIR stock would be of great value to the Biden administration; the underlying company specializes in many advanced technologies that help keep our troops out of harm’s way.

FLIR Systems has a strong civilian component as well. As manufacturers of infrared technology, the tech firm is pivotal in search and rescue operations. If the Biden White House promotes a love of conservation and the environment, this could theoretically spark interest in outdoor activities. However, that also raises the risks associated with such endeavors, making FLIR a very contrarian idea among tech stocks to buy.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.