Although investors rotated away from expensive technology stocks earlier this year to cyclical stocks to capitalize on the economic recovery, the tech industry expected to be dominant in the foreseeable future on the back of a digital transformation across several sectors. Indeed, the industry has been witnessing renewed investor interest lately because of this. So, we think it could be wise to bet on quality, low-priced tech stocks Rimini (RMNI), EMCORE (EMKR), and Immersion (NASDAQ:IMMR) now. Let’s evaluate these names.Investors rotated away from expensive tech stocks earlier this year to cyclical stocks to capitalize on the recovering economy. However, investors’ interest in the tech stocks has been returning lately because a recognition has dawned that the COVID-19 pandemic is far from over, with the more contagious viral variants in the offing. Notably, Japan this week declared a state of emergency amid rising COVID-19 cases in the country.
Investors’ renewed interest in tech stocks is evidenced by the Technology Select Sector SPDR Fund’s (XLK) 7% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 2% returns. In fact, the tech-heavy Nasdaq hit its 14,755.33 all-time high on July 7, 2021. The ongoing digital transformation and increasing focus on 5G and AI-based technological advancements are expected to keep driving the industry’s growth.
So, we think it’s now wise to bet on fundamentally strong tech stocks Rimini Street , Inc. (NASDAQ:RMNI), EMCORE Corporation (EMKR), and Immersion Corporation (IMMR). They are currently trading at below $10 but hold immense upside potential.