The growing reliance on the technology industry as businesses accelerate their digital transformation efforts and increase the adoption of advanced technologies should help tech stocks continue advancing. Given its strong growth potential and surging investor optimism surrounding the industry, we think prominent tech stocks Ericsson (BS:ERICAs) (ERIC), HP (HPQ), ASE Technology (ASX), which are currently trading at affordable prices, are solid picks now. Read on.The technology industry has been experiencing a solid year backed by widespread 5G deployment, rapid adoption of artificial intelligence, and accelerating digital transformation. In addition, as organizations worldwide adopt hybrid working models and boost their cloud-driven capabilities, the tech industry has been gaining steam.
Investor optimism over the tech industry’s prospects is evident in the iShares Global Tech ETF’s (IXN) 12.1% returns over the past three months versus the SPDR S&P 500 ETF Trust’s (SPY) 7.7% gains. Substantial IT spending, growing demand for semiconductors, and increasing dependency on advanced technology solutions should bolster the tech industry’s growth.
Given this backdrop, we think it could be wise to bet on quality stocks Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), HP Inc. (NYSE:HPQ), ASE Technology Holding Co., Ltd. (NYSE:ASX). They each look significantly undervalued at their current price levels.