This is the best time to look for tech stocks to buy and hold.
As we inch closer and closer to the end of the year, investors are hoping for a much-needed respite. Inflation ran rampant this year, remaining close to a 40-year high in September.
However, the consumer price index rose 7.7% in October, indicating that inflation may be easing off after a rough year. It brings hope that the Fed will be slightly less hawkish moving forward.
These three stocks have strong financial stability and good earnings reports. They also are well-positioned in their industry and are poised for future growth.
These tech stocks to buy and hold have all of the above qualities, plus they’ve lost substantial value this year. If you are looking to close out the year in style, these are excellent names for any portfolio:
Advanced Micro Devices (AMD)
AMD (NASDAQ:AMD) has had a tough year. Its year-to-date performance shows no one is safe from the market downturn. The stock is down more than 50% since January and currently sits at a multi-year low.
A combination of weak third-quarter earnings and the broader economic downturn are the principal reasons why AMD finds itself in the current predicament.
The tech giant reported a 29% year-on-year increase in revenue. Still, EPS took a sharp dip because of the acquisition of Xilinx, a technology and semiconductor industry, for $49 billion in an all-stock deal concluded in February.
The slow demand for PCs led to a substantial decline in client business for the chipmaker. For this full year, AMD estimates $23.5 billion of revenue and 52% gross margin, both of which are down from prior guidance.
It is not all doom and gloom, though. Diversifying into data centers and gaming has been paying off, as AMD saw a significant increase in those divisions. AMD’s Data Center segment reported a 45% year-on-year jump in revenue, while the Gaming unit produced a 14% increase.
Overall, there are several reasons why its stock could rebound soon. The company’s new Ryzen 7000 processors are gaining traction in the market, and its Epyc data center chips could be a game changer.
The global semiconductor market continues to grow exponentially, providing plenty of upside for AMD shareholders. While certain risks are associated with investing in tech stocks, AMD is worth taking a chance on.
Airbnb (NASDAQ:ABNB) is down more than 40% this year.
It recently reported impressive results for the third quarter, with revenue up 29% and the net profit up 46% over last year.
Still, the stock fell because of lighter-than-expected Q4 guidance and management sounding the alarm regarding foreign currency fluctuations and macroeconomic headwinds.
In the current fiscal year, the company has introduced many changes in an effort to attract new clients.
Now that the pandemic is beginning to relent and the travel industry is returning to normal, Airbnb is ready to reap the rewards. If you are looking for tech stocks to buy and hold, Airbnb looks in prime position for 2023.
Meta Platforms (META)
Shares of Meta (NASDAQ: META) are down close to 70% this year. It has been a long time since October 28, 2021 – the day on which Facebook rebranded to Meta. The excitement for the company’s amazing potential has waned since then as it failed to meet expectations.
Meta Platforms is conscious of these developments; it is now focusing on slashing costs and improving its AI capabilities to combat the slowdown in ad spending. It lowered its capital expenditure expectations by $2 billion at the top end in 2023. Although the out-of-favor tech giant will still boost capital expenditure spending by another 10% in 2023, this is a much-needed move to stabilize its near-term margins.
Meta’s growth in the past few quarters has been pretty stagnant – and analysts expect this stagnation to continue.
AI investments will help the company regain lost ground, and there is potential for this to be a key growth driver going forward.
While Meta’s near-term prospects may be somewhat muted, the long-term outlook remains positive, which is why it is among the best tech stocks to buy and hold.
On the publication date, Faizan Farooque 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.