Tech stocks are making a stellar comeback following their plunge earlier this year. Because the demand for advanced software is rising amid the fourth industrial revolution, we think mega-cap stocks Oracle (ORCL) and Cisco Systems (NASDAQ:CSCO) are poised to deliver handsome returns in the coming months. So, let’s take a closer look at these names.The technology industry has been attracting renewed investor interest thanks to continuing digitization of virtually every industry, and the large-scale adoption of hybrid work structures. Following an extended tech sell-off earlier this year, rejuvenated investor optimism last week drove the tech-heavy Nasdaq Composite to its all-time high.
Moreover, tech stocks have outperformed the broader markets over the past month, as evidenced by the Nasdaq Composite’s 4.2% gains compared to S&P 500’s 1.7% returns.
Given this backdrop, we think that the recent slump in mega-cap stocks Oracle Corporation (NYSE:ORCL) and Cisco Systems, Inc. (CSCO) should reverse soon. And because the demand for quality software services is rising, these companies are poised to generate solid growth.