![]() ![]() There is growing demand for advanced automotive chips, along with chips powering internet of things (or IoT) devices. As a Seeking Alpha commentator argued last month, this tailwind far outweighs a top upcoming headwind for this semiconductor company (the loss of Apple as a key mobile chip customer starting in 2025). Qualcomm (NASDAQ: QCOM), has high exposure to the growing use of chips in industrial applications. In turn, fueling substantial share price appreciation in the years ahead. In time, this could serve as a major accelerant for earnings growth. The company is not only integrating it into its Bing search platform, but into its Azure cloud computing and Office365 software platforms as well. Given the hype surrounding Microsoft (NASDAQ: MSFT) and its artificial intelligence catalyst, you may think that shares in the software and technology powerhouse have moved up too far, too fast. However, MSFT stock is up by just 19.5% year-to-date, gains that pale in comparison to other names boosted by “AI mania.” Not only that, while it’s going to take some time before Microsoft’s efforts in the area of AI translate into earnings growth, the potential payoff could produce strong returns for patient investors.įollowing its strategic investment in ChatGPT developer OpenAI, Microsoft is now busy integrating this technology. After that, the strength of its underlying business, which may face fewer competitive threats than Alphabet’s Google search platform, could enable the company to continue delivering steady earnings growth. And, even if you missed this stunning comeback, there’s still plenty of time to accumulate. As cost savings fall straight to the bottom line, and as the digital ad market recovers, Meta is well-positioned to report strong earnings growth going forward. Investors have reacted positively to the company’s aggressive cost-cutting efforts. However, since Nov., the META stock has more than doubled. All as concerns about CEO Mark Zuckerberg’s big bet on the metaverse exacerbated existing worries about the impact of an economic slowdown on the social media giant’s fiscal performance. Shares in Facebook parent Meta Platforms (NASDAQ: META) fell to deep value prices during 2022. Fairly-priced at 26.5 times forward earnings, ADP may just well end up outperforming shares in many fast-growing but overvalued tech companies. ADP also continues to deliver strong dividend growth, growing its payouts by an average of 13.8% annually over the past five years. The company is expected to grow earnings by double-digits in the coming years. With this, I think we can consider ADP stock one of the best long-term tech names out there. As I argued last month, Automatic Data Processing continues to have strong long-term growth prospects. Yet, ADP does have a long history of technological innovation. More importantly, it has translated this innovation into a strong track record growth. Technically, the payroll processing and HR services company is classified as being in the industrials sector. A re-acceleration of earnings growth back to historic norms, coupled with ADI’s moderately-sized yet fast-growing dividend, points to strong total returns in the years ahead.Īdmittedly, it’s a bit of a stretch to call Automatic Data Processing (NASDAQ: ADP) a tech stock. Although the current slowdown in chip demand may bring growth to a halt in the near-term ( based on analyst earnings forecasts), ADI has the potential to stay a winner.Īs a maker of chips for both the industrial and automotive sectors, technological trends in both areas point to continued growth in demand for the company’s offerings. However, this chipmaker doesn’t need to be in the spotlight in order to be one of the best tech stocks to buy and hold. A favorable environment for semiconductor demand of course provided a shot in the arm to this company’s fiscal results, and in turn, to the performance of ADI stock. Instead, as Louis Navellier argued earlier this month, it is the company’s long-term catalysts, such as secular growth in its Services unit, that make Apple stock a great buy and hold contender among tech names.Īnalog Devices (NASDAQ: ADI) is certainly not a household name like Apple. That said, it’s not past and recent performance that makes Apple one of the best tech stocks to buy for the long-term. GOOG remains down by about 30% from its high-water mark. Compare that to one of its major peers, Google parent Alphabet (NASDAQ: GOOG, NASDAQ: GOOGL). In fact, following the iPhone’s maker’s strong comeback since the start of the year, shares are not far off from their all-time closing high. AAPL stock changes hands today for around $166 per share, versus an all-time closing high of just over $180 per share. Compared to many of its FAANG peers, Apple (NASDAQ: AAPL) held up relatively well during the 2022 tech stock sell-off.
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