Even though investors are rotating away from tech stocks to capitalize on the economic recovery by betting on cyclical stocks, there is little doubt that the need for more advanced technology in several industries will help the sector rebound quickly to outperform the broader market. So, we think it is wise to invest now in Nokia (NYSE:NOK) and EchoStar (SATS). They have already generated significant returns this month and still have plenty of upside. Read on.The tech-heavy Nasdaq Composite sank 2.6% on May 10 as investors’ rotation away from tech stocks to cyclical stocks continued. However, several tech giants reported impressive results for the last quarter.
Given the financial strength of the tech companies and the rising demand for technology products and solutions from several industries as part of their accelerated digital transformation, we think the down phase for the technology stocks should be short lived.
Widespread adoption of 5G, IoT, and AI should keep the industry growing. So, it is wise to bet on Nokia Corporation (NOK) and EchoStar Corporation (SATS), which have delivered solid returns lately and are well positioned to keep gaining.