Federal Reserve Chair Jerome Powell has hinted at the likelihood of implementing further interest rate hikes to counter inflation with a potential tightening slated for the December meeting. Although market expectations lean towards a pause, Powell underscored the nuanced equilibrium required to tackle inflation without causing undue economic harm.
Despite the U.S. economy exhibiting a strong annualized growth rate of 4.9%, there’s a pressing need to address the risk of demand slowdown in order to rein in inflation, particularly in light of the persistent resilience of homeowners benefiting from low mortgage rates.
In the face of prevailing market uncertainty, it is advisable to concentrate our investments on companies that are unequivocally positioned to disrupt their respective industries, which are these three tech stocks set to grow.
Intel Corporation (INTC)
Intel Corporation (NASDAQ:INTC) is a technology company specializing in semiconductor chips. It’s best known for its x86 series of computer instruction sets found in nearly every personal computer.
INTC stock is up 45.04% YTD. According to Yahoo! Finance, analysts rate the stock as a hold, with an average target price of $38.77.
The semiconductor industry has a projected 12.2% CAGR to grow from $573.44 billion in 2022 to $1,380.79 billion in 2029. Increasing demand for consumer technologies is driving market growth, and rapid technological advancements within the artificial intelligence (AI) industry and urbanization are prominent catalysts.
Intel sales shrunk by 20.21% last year, from $79 billion in 2021 to $63 billion in 2022. However, the company’s Q3 report demonstrates a stable path toward recovery, with revenue above high-end guidance. Additionally, Intel has increased profitability with net investing cash flow up 58.37% YoY and recovering financial statements.
Intel’s profitability is driven by strategic investments in production and AI. The company’s heightened focus on production has facilitated the expansion of its facilities, with recent additions in Ireland, Germany, and Poland. Additionally, Intel has unveiled its latest advancements, including the 5th Gen Intel Xeon and Intel Core Ultra processors. These cutting-edge technologies are set to facilitate the widespread deployment of innovative AI solutions in the cloud.
As one of the most promising semiconductor companies in its market, Intel is a buy for those interested in tech stocks.
Manhattan Associate Incorporated (MANH)
Manhattan Associate Incorporated (NASDAQ:MANH) is known for building technology solutions to solve the most complex business problems in supply chain and inventory.
MANH stock is up 70.93% up YTD. Due to its high employment projections, the global construction technology market is projected to grow from $5 billion in 2023 to $24 billion by 2033 at a 16.9% CAGR.
Revenue and EPS have been strong in Q3 2023. Revenue of $238.44 million grew 20.36% YoY and beat analyst expectations by 5.30% while a 20.23% net profit margin grew 38.38% YoY. Income grew to $49.42 million, an increase of 66.55%.
Manhattan has been capitalizing on the e-commerce boom, leveraging its expertise in handling the intricate and rapidly evolving supply chains of online retailers. Moreover, the city’s commitment to digital transformation initiatives compels businesses to modernize their technology systems to drive growth. Manhattan’s ability to respond to changing customer demands and market conditions through the integration of AI, ML, and cloud computing demonstrates flexibility and stability.
Yahoo! Finance reports 6 analysts having a 12-month mean price target of $210.67, with the range spanning from as low as $175.00 to as high as $230.00.
Applied Materials Incorporated (AMAT)
Applied Materials Incorporated (NASDAQ:AMAT) is a leading provider of equipment, services, and software for semiconductor chip production for electronic devices. Applied Materials also offers equipment for flat panel display manufacturing and coatings for flexible electronics, making it a pivotal player in the technology and semiconductor manufacturing sector.
AMAT is up by 50% YTD. Investors have rated AMAT as a buy and are targeting an average price of $142.
Revenue of $26.54 billion in the current fiscal year, boasting a robust profitability margin of 24.27% and a substantial gross profit of $12 billion. Additionally, 28 analysts anticipate its price to reach $149.00 from a low to high target of $113.00 to $174.00.
Applied Materials operates in the semiconductor industry with a growth CAGR of 6.21% from $555.9 billion in 2021 to $1,033.5 billion in 2031. The rising demand for smart devices is a growth catalyst, as technology companies tap into modern households to meet consumer needs. From AI-powered smartphones to IoT and 5G adoption, semiconductors power technologies that enhance consumers’ lives and drive business efficiency.
The company is set to drive a significant transformation with the launch of the Equipment and Process Innovation and Commercialization (EPIC) Center in Silicon Valley. This groundbreaking multibillion-dollar R&D platform enables early access for chipmakers to cutting-edge processes and equipment, expediting product development. It also supports university researchers, fostering innovation and strengthening the talent pipeline. The EPIC Center’s innovative approach will reduce time-to-market, improve success rates, and enhance the semiconductor ecosystem’s growth, which positions Applied Materials as a pioneering industry leader.
With the launch of the EPIC Center and its strategic investments, AMAT is poised for substantial growth from the forward-looking approach and increasing demand for semiconductors.
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.
