Holding tech stocks is not the same as having shares of mining or food companies in your portfolio. The difference lies in the speed of technological improvements that can occur almost every week and knock the previous leaders out of the game. To avoid losses from betting on outdated tools, you should look at breakthrough ideas that will be relevant for decades to come and consider haptic technology stocks.
Two years ago, this market had a value of $3 billion and consisted of a small number of cutting-edge augmented reality companies in gaming, entertainment, education and healthcare. In 10 years, this segment is expected to grow more than three times to $9.1 billion. The wealth of proactive investors may grow accordingly. Smartphone, gaming console and driver assistance system users have gotten used to haptic feedback and will not abandon it. The demand for the technology cannot go down. These are the best haptic technology stocks to consider.
Texas Instruments (TXN)
Semiconductor manufacturer Texas Instruments (NASDAQ:TXN) is a partner in automotive, consumer electronics, education and other industries. It provides solutions for the functioning of modern devices, such as processors, data converters and amplifiers. For more than 70 years, the company has adapted to the constant changes in customer demands, allowing it to expand production capacity even in today’s unstable conditions. $3.82 billion in revenue for Q2 2024 is a source of financing for the transformation, as it exceeds even analysts’ expectations. The same can be said about the value of earnings per share ($1.22), which is 5% higher than the forecast.
The semiconductor market volatility has also affected haptic technology stocks, so Texas Instruments cannot boast of profit growth for eight quarters in a row. However, the company is not going to sit idle. It has improved its days in inventory (DIO) to 232 days and plans a 7% increase in sales in the next quarter. The increase in consumer demand for modern AR/VR technologies and simulation equipment should play a significant role in the rise.
ON Semiconductor (ON)
Electric vehicles and the Internet of Things (IoT) are within ON Semiconductor’s (NASDAQ:ON) area of expertise. These fields are a fast-growing market for semiconductor manufacturers. To ensure that its product range is up to date, the company had to consider the compatibility of its products with haptic technology. Car touch screens and industrial control devices made by ON Semiconductor use sensors and actuators to provide tactile feedback.
The acquisition of SWIR Vision Systems is a sign of ON Semiconductor’s increasing use of intelligent image sensing. In addition, investments in the expansion of production in South Korea and the Czech Republic have significantly strengthened silicon wafer production. The last month meant a period of volatility for ON, which brought the stock up to $78.74 and down to $67.54. Expectations of volatility also follow this representative of haptic technology stocks in Q3 2024, with a projected change of 9.69% due to speculation around the company’s performance. Nevertheless, the company’s focus on fast-growing markets encourages analysts to recommend buying ON.
Microchip Technology (MCHP)
Microchip Technology (NASDAQ:MCHP) helps ship 8-, 16- and 32-bit microcontrollers to American, European and Asian markets to make cars, consumer electronics and industrial machines more reliable and efficient. The involvement in the production processes of advanced technology companies makes MCHP a watchable stock for investors. Haptic technology stocks can break their price highs at any moment. In Q1 2024, MCHP fully met analysts’ expectations with earnings per share of $0.57. This value in Q2 may be lower, as the company forecasts $0.48-$0.56. Analysts believe EPS will reach $2 in the current fiscal year and double in the next fiscal year.
The successful implementation of strategic initiatives has led to an overall upward trend of MCHP: over the past five years, the share has risen from $29.82 to $86.83. The company’s market capitalization of $46.58 billion allows it to feel comfortable against smaller players in the semiconductor market, and investors do not take information about short-term downturns in the share price so painfully.
On the date of publication, Julia Magas did not hold (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
