Factors including high inflation, weak job growth, and the resurgence of COVID-19 cases caused the equity markets to sell-off last Friday. However, given the tech industry’s favorable long-term growth prospects, we think fundamentally sound tech stocks Amkor (NASDAQ:AMKR), Teradata (TDC), NetScout (NTCT), and Himax (HIMX) are well-positioned to deliver solid returns in the coming months. So. let’s discuss these names.The tech industry has been able to capitalize on the growing demand for its products and solutions from startups to large-scale enterprises and gain expanding reach since the onset of the COVID-19 pandemic. However, increasing concerns about high inflation, weak job growth reports for November, the Federal Reserve’s more hawkish monetary policy, and the rapid spread of a highly infectious COVID-19 variant, omicron, caused the broader market to pull back. Markets sold off last Friday, with the tech-heavy Nasdaq Composite losing 1.9%.
But because these factors are not likely to dissipate soon, analysts anticipate a significant market correction sometime soon. However, the continuation of remote and hybrid working structures amid the resurgence of COVID-19 cases, and the industry’s sound long-term growth, should allow tech companies to prosper, despite the market’s weakness. Thus, betting on fundamentally sound, undervalued tech stocks could hedge one’s investment portfolio against market fluctuations.
We think fundamentally sound tech stocks Amkor Technology , Inc. (AMKR), Teradata Corporation (NYSE:TDC), NetScout Systems, Inc. (NTCT), and Himax Technologies, Inc. (NASDAQ:HIMX) have the potential to capitalize on their respective industry tailwinds and deliver stable returns.