While the tech industry is expected to continue growing with the ongoing digital transformation of almost every industry, high-priced stocks might witness a pullback amid heightened market volatility. So, we think it could be wise to bet on low-priced stocks in this space O2Micro International (OIIM), Everspin (MRAM), PCTEL (NASDAQ:PCTI), Socket Mobile (SCKT), and SilverSun (SSNT).These companies are all well-positioned to capitalize on the industry tailwinds. So, let’s take a closer look at these names.The tech-heavy Nasdaq Composite closed yesterday’s session at a record high in-part because private payrolls data indicated the continuation of the low-interest-rate environment, which is favorable for the tech industry. In addition, due to industry’s ongoing digital transformation and remote working, the heightened demand for efficient tech devices should keep driving the industry’s growth.
Investors’ optimism about the tech industry is evident in the iShares U.S. Technology ETF’s (IYW) 4.8% gains over the past month, which surpassed the SPDR S&P 500 Trust ETF’s (SPY) 3.6% returns.
However, because concerns surrounding the pace of economic recovery due to rising inflation might lead to a market correction in the near term, betting on high-priced tech stocks now could be risky. Therefore, we think it could be wise to bet on smaller tech stocks O2Micro International Limited (OIIM), Everspin Technologies, Inc. (NASDAQ:MRAM), PCTEL, Inc. (PCTI), Socket Mobile, Inc. (SCKT), and SilverSun Technologies, Inc. (SSNT). These companies are sufficiently fundamentally sound to deliver solid returns in the coming months. Their stocks are currently trading below $10 in price and have plenty of upside to deliver.