The continuing adoption of advanced technology solutions to facilitate hybrid working and business digitization is propelling the technology industry’s growth. Therefore, we believe investors could benefit by betting on fundamentally sound tech stocks SS&C Technologies (SSNC) and Diodes (NASDAQ:DIOD). These stocks are currently trading near their 52-week highs but still have plenty of upside to deliver. Let’s discuss.An increasing dependence on cloud-based services, data and analytics capabilities, and the 5G rollout is accelerating the technology market’s growth. The continuing adoption of advanced technologies for hybrid working, the expansion of data centers, and business automation should keep the industry’s products, services, and solutions in demand. Furthermore, according to a Forrester report, the U.S. tech spending is expected to grow by 6% in 2021 and 6.8% in 2022.
Investors’ interest in the technology industry is evidenced by the iShares Global Tech ETF’s (IXN) 16.7% returns over the past six months versus the SPDR S&P 500 ETF Trust’s (SPY) 11.1% gains.
Therefore, we think it could be wise to bet on fundamentally sound tech stocks SS&C Technologies Holdings, Inc. (SSNC) and Diodes Incorporated (DIOD). The shares of both companies are trading near their 52-week highs, but we think they still have plenty of upside to deliver.