While tech stocks experienced extreme volatility earlier this year, the industry has been reclaiming significant investor attention lately thanks to widespread and growing reliance on technology globally and optimism over the industry’s bright long-term prospects. In addition, the Federal Reserve’s reaffirmation that it will leave interest rates unchanged for a long period makes the environment favorable for tech companies Nokia (NYSE:NOK) and Cannon (CAJ). So, we think these two stocks could be solid additions to one’s portfolio now.While the tech industry had a bumpy ride earlier this year, with investors rotating away from expensive tech stocks to quality cyclical stocks, continued digital transformation, and the central bank’s decision to not raise interest rates too quickly on inflation fears alone should enable the prices of tech stocks to climb to fresh highs this year.
As the reliance by individuals and businesses on technology continues to grow, tech companies are broadening their bases and increasing their offerings to exploit the opportunity. With expenditure on computers, video games, networking, cloud computing services, and digital advertising increasing dramatically, the tech industry is well positioned to keep growing.
Considering this solid backdrop, we think fundamentally sound technology stocks Nokia Corporation (NOK) and Canon Inc. (CAJ) are well positioned to deliver significant returns going forward.