With skepticism about the United States facing a possible recession, Cathie Wood, renowned CEO of Ark Invest, has thought otherwise. Wood speculates a soft landing for the U.S. economy if companies accept lower margins without cutting staff, preventing an unemployment rise. This thinking could prevent a sharp downturn – or even a recession. Wood’s optimism on the Federal Reserve’s monetary policy could drive economic growth and market expansion in the next 18 months. This optimism might lead to increased investor confidence in sectors with growth potential, such as the technology sector. Add these top tech stocks to your portfolio to ensure adequate returns in the face of potential economic improvement.
Apple (APPL)
Apple (NASDAQ:AAPL) is a multinational technology company that produces smartphones, computers and accessories worldwide. AAPL stock is up 45.51% YTD and has the most consistent growth trend since 2013.
The consumer electronics market is very mature and it is forecasted to grow at a 2.32% CAGR from 2023 to 2028. Apple reported strong Q3 financials, with quarterly revenue of $81.8 billion down 1% YoY and EPS of $1.26 up 5% YoY. Apple also ended with $26 billion in operating cash flow and returned over $24 billion to shareholders.
Recently, Apple has announced a project to develop optimization standards for 3D content on mixed-reality devices. This is in partnership with Adobe (NASDAQ:ADBE), Autodesk (NASDAQ:ADSK), Disney’s (NYSE:DIS) Pixar and Nvidia (NASDAQ:NVDA). This will create a path for innovation and creativity among these companies and set global 3D product standards.
Moreover, Apple is also preparing to release the Apple Vision Pro early next year. The Apple Vision Pro’s augmented reality feature is predicted to replace our daily smartphones and computers. This will further boost financials for Apple, as the company is now at the forefront of the worldwide digitalization trend with this new product.
Yahoo! Finance reports 40 analysts with a 1-year mean price target of $196.43, ranging from lows of $140.00 to highs of $240.00. APPL’s innovation while maintaining stable financials makes it one of the top tech stocks to invest in.
Applied Materials Incorporated (AMAT)
Applied Materials (NASDAQ:AMAT) is an American corporation that provides equipment and software for the manufacture of semiconductor chips. AMAT stock is up 50.58% YTD with Yahoo! Finance reporting that 25 analysts had a 1-year mean price target for AMAT stock to be at $142.64. The range spans from a low of $87.00 and a high of $175.00. AMAT has already surpassed the mean price target as of this article.
The semiconductor industry is projected to grow at a 12.2% CAGR from 2022 to 2029. Applied Materials Q2 earnings had a revenue of $6.64 billion, up 6.16% YoY, beating expectations by 4.07%. Additionally, the reports had a diluted EPS of $1.86 which is up 6.8% YoY, beating expectations by 9.49%. The company also boasted a net income of $1.58 billion, up 2.54% YoY.
Applied Materials has recently announced a $4 billion investment to establish the EPIC Center R&D platform in Silicon Valley by 2026. The EPIC Center would be the world’s most advanced facility for technology and equipment for semiconductor innovation. Furthermore, Applied Materials and Intel (NASDAQ:INTC) have partnered with Schneider Electric (OTCMKTS:SBGSY) to decarbonize the global semiconductor value chain. This should effectively address environmental, social and governance (ESG) concerns in the future. This new Catalyze program will assist suppliers, raise awareness of renewable energy in global regions and provide companies with information on developing carbon-suitable models for the foreseeable future.
Applied Materials’ transition to effectively address ESG concerns while investing in the EPIC research and development in Silicon Valley proves its leadership’s long-term growth-oriented strategies. AMAT has established itself as one of the top tech stocks stock as it has already surpassed analyst mean predictions, and will continue surpassing growth trends.
Palantir Technologies (PLTR)
The last of the top tech stocks we’ll discuss is Palantir Technologies (NYSE:PLTR), an American software company that specializes in big data analytics. The company’s stock is up a staggering $184.85% YTD, the highest it has been this year. Palantir’s financials have been excellent as its recent quarter revenue of $525.19 million is up 17.66% YoY, beating expectations by 3.80%. Additionally, its diluted EPS of $0.01 is up 120%, beating expectations by 25.03%.
The big data analytics market is projected to grow at a 13.5% CAGR from 2022 to 2030. Yahoo! Finance additionally reported 14 analysts having an average price target for PLTR stock to reach $12.54. PLTR stock as of this article is nearing the high predicted price threshold.
Palantir’s recently renewed partnership with WestTrac will in turn focus on incorporating Palantir Foundry, its SaaS platform, across core operation systems. Palantir is also expanding its new Artificial Intelligence Platform (AIP) with WestTrac to explore more big data and software solutions.
In addition, Palantir announced a new partnership with J.D. Power to engage in automotive data analysis. J.D. Power is utilizing Palantir Foundry to develop new insights into the automotive market. Palantir’s key partnerships with J.D. Power and WestTrac will provide unmatched big-data solutions that competitors cannot compare to.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
