5 Best Technology Stocks Of This Year You Should Know About
- Stocks
Yaseer Rashid- 0
- 10 minutes read
2021 was full of fresh all-time highs for the Nasdaq Composite index which was inclined towards technology, as big technologies got bigger and the prevailing pandemic boosted the shift to a rising digital economy. And this trend has continued since then. In this respect, let us have a look at the top technology stocks for 2021. This will give us an insight into how the tech industry went in 2021 from which we can derive predictions for the upcoming years. Here is some news on tech stocks today.
Top 5 Technology Stocks For 2021
The technology stocks have been away from the sure bet since this year started its stretch operation in the middle of November. Inflationary fears and concerns of increasing interest rates pushed the investors out of internet and software entities, sending scores of prior to outdo into the territory of correction.
Despite the fluctuations and sell offs across the tech industry, investors have made a group of money betting on specific stories and companies. Certain spaces of the semiconductor market increased in 2021, as there was also an increase in demand for processors that could speed for the purpose of crypto mining, help the development of gaming, and could connect more devices to the internet.
Fintech, cybersecurity, and cloud software had their own share of standout well, even if purchasing a basket of those stocks and holding these stocks for a year would not have been an attractive option.
Here we have discussed the top 5 technology stocks for 2021 among the US tech companies which are valued at $5 billion or more than that. So let us get started with the best tech stocks for 2022.
Upstart
When Upstart conducted its stock market debut in mid-December of 2020, the entity was valued at nearly $1.5 billion. Just in a year, it is a $12 billion company. The shares of this company are up 264% since the starting of 2021, which includes a gain of 171% over a wild three-day length in March.
The entity uses machine learning to guarantee consumer loans and offers its technology to partners of banking who can then better target their customers.
Revenue in the third quarter increased 250% to $228 million. Along with rapid growth, Upstart is offering its investors something that is unusual from the latest public tech company: profits. Upstart has developed earnings for five long quarters that include net income of $29.1 million in the recent period, up from $9.7 million a year before.
Upstart stated in its earnings call in November 2021 that it now offers technology services to over 31 banks and credit unions, which is an increase from 10 a year ago. In the third quarter, the entity powered 362,780 loans, which is an increase of 244% from a year earlier.
Synaptics
Synaptics was established in 1986 and this company went public after 16 years. But it took until 2020 for the investors to begin getting excited about this technology stock. This year it took off, increasing to 189%.
Synaptics developed in the heart of Silicon Valley, generating touchpads and scroll pads for PCs along with biometrics. Its technology of touch then received resonance with smartphones. Now, with the increase in devices that are acting like computers, this tech company has placed itself at the heart of the “Internet of Things” (IoT) blast.
The technology of this company can be found in virtual reality headsets, connected cars, set-top boxes, gaming systems, and drones. It aims to consume of low-power for all types of wireless devices. According to CEO Michael Hurlston,
“We’ve done really really well with that business — it’s outperformed our best expectations. I think it’s because we didn’t go after what everybody else was chasing. We repositioned it to go after an interesting market that has turned out to be a great grower.”
At the beginning of December 2021, Synaptics finished its $549 million acquisition of DSP Group, which offers wireless chipsets and voice processing.
Asana
At its height in mid-November, the technology stock of this company was up almost five-fold for 2021, far surpassing all other U.S. technology stocks. It has lost almost half its value since that time, falling alongside a group of other high-priced cloud software stocks.
Still, the provider of software that aids marketing, functions, and sales teams takes care of the projects and collaborates remotely is up 164 percent in 2021, boosted by a year-over-year revenue increase of at least 70% in the second and third quarters.
Similar to Upstart, this company went public in 2020 but its releasing party with investors took a few months to get rolling. Dustin Moskovitz, the billionaire co-founder and CEO of the company, has been purchasing along the way.
Moskovitz bought nearly $293 million worth of Asana shares in 2020, taking advantage of the dip to support his position. He now dominates nearly 44% of the Class A and Class B combined shares of the company, up from 36% before the New York Stock Exchange debut of the entity in September 2020.
Transforming free users to paying customers is the prime thing to the future growth and profitability of this company. In its third-quarter earnings report that came at the beginning of this month, Asana said paying clients rose by 7,000 to more than 114,000 and stated that revenue from the user spending over $5,000 every year jumped to 96% from a year earlier.
Fortinet
With two right quarters of revenue growth over 30%, Fortinet is extending at its fastest rate since 2016. A flurry of ransomware attacks in addition to a more complicated security environment formulated by a sudden increase in remote work resulted in a hike in demand for the technology of Fortinet this year.
Shares have risen 133%, closing on 30.12.2021 at $349.02. That lifted the market capitalization of the company past $57 billion, exceeding rival Palo Alto Networks, which is priced at $55 billion after its stock increased 58% in 2021.
Following the better-than-expected earnings report of Fortinet and upbeat forecast in the previous month, analysts at Wedbush raised their price target to $400 from $350. One cause, the firm cited, was the free cash flow of the company, which increased to $329.8 million from $185.7 million a year earlier. This is among the best long-term tech stocks. According to Wedbush analysts, who kept their purchase recommendation on this technology stock.
“In a nutshell, Billings growth upside, strong FCF, and a healthy pipeline should be the trifecta to drive this stock higher.”
Nvidia
Nvidia, the chipmaker, was among the best-performing mega-cap technology stocks of the year. The Nvidia stocks increased 127% in 2021, shifting the market capitalization of the company to $741 billion, which is the seventh highest among U.S. technological companies, behind the five big tech names and Tesla.
The growth in revenue has topped 50% in each of the last five quarters, asserting that the high-performance graphics processing units of Nvidia stay in hot demand. Within the data center, the data-intensive workloads and technology bolster the artificial intelligence of Nvidia, while gaming systems prevail to require heftier processing power.
Earlier in 2021, Nvidia issued new processors mainly for the purpose of crypto mining. They have developed $526 million in revenue as of now, but crypto is asserting to be a fluctuating market for Nvidia. The entity stated last month that sales of the products increased 60% sequentially from the second quarter to the third and are predicted to be “very negligible” in the fourth quarter.
Investors are not expressing much care. The stock increased over 8% after the earnings report, largely because gaming processors, the core business of this company, generated $2.76 billion in its revenue, a rise of 106% from last year. As per the analysts from Piper Sandler,
“We continue to believe the company’s long-term prospects are some of the best in the semiconductor industry.”
Conclusion
This article mainly dealt with the top technology stocks for 2021 to offer you an insight into how the tech industry went in 2021. As per this article, the industry went quite well as the demand for technological equipment increased because of the pandemic and the rising demands for crypto mining. With that, it can be predicted that this sector may witness a rise in 2022 as well.
