3 Strong US Tech Stocks to Consider

An important disclaimer, the information in this article is based on online research and should not be considered investment advice. Always conduct your own due diligence before investing.

The tech stock market has been quite volatile over the past few months with incredible highs and lows. The pandemic accelerated the adoption of tech solutions, which has driven a lot of growth but a global shortage of chips, components and the Chinese government’s crackdown on the tech sector have caused some uncertainty. Instead of looking at sensational headlines about sudden spikes or drops in stock values, we think it’s a good idea to look at some tech stocks that have shown consistent growth over the past few years.

Growing tech stocks that are a safe bet

1. Fortinet

Founded in 2000, Fortinet is a multinational company that is based out of California. The company provides software and solutions for cybersecurity. Fortinet provides end-to-end solutions for security infrastructure. During the pandemic, 35% of all cyberattacks used malware or methods that were previously unseen. This is a 10% increase compared to pre-pandemic times[1]. It is clear from this data that cybercriminals are getting more innovative. In 2021 we saw several prominent cyberattacks that caused significant damage to business operations. Though not an ideal situation, it bodes well for Fortinet's future. There will continue to be a demand for their security products for many years to come. In the second quarter of this year, Fortinet reported a revenue increase of 30% compared to the previous year. The company has strong financials and has shown steady growth over the years.

2. Nvidia

The use of microchips and graphic cards in various devices has increased exponentially over the past decade. Nvidia has been a beneficiary of this growth. In the last five years, the company’s stock has increased by more than 1300%. The company has seen an 89% growth year-over-year, much higher than what most analysts had predicted. This is an impressive showing given that there has been a lot of disruption to the supply chain for chip manufacturing components due to the global pandemic. The company has plans to acquire Arm Ltd for $40 billion. Currently, the acquisition is going through an antitrust review. If approved this would cement the company’s reputation as a durable tech stock that is able to withstand uncertainty created by news about disruptions to their supply chain and a shortage of chips globally.

3. Square

Square is an exciting company. Their stock has increased more than 2,100% in the past 5 years. In their most recent earnings report, Square showed a revenue of $4.7 billion. This is a billion dollars more than the revenue last year. The company also reported earnings of 66 cents per share. A significant increase from 18 cents per share from the previous year. This increase in earnings shows that even though the company is aggressively scaling they are still a profit-earning enterprise.
If you are active in the stock market. These might be interesting stocks to look at. Despite recent headlines, the tech sector remains high on investor’s lists and new innovations are leading to exciting opportunities. Subscribe to Whitepapers.online for the latest info on tech.

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Source:

1. n.d., C. Nabe, “Impact of COVID-19 on Cybersecurity”, Deloitte, [available online], available from: https://www2.deloitte.com/ch/en/pages/risk/articles/impact-covid-cybersecurity.html [accessed Aug 2021]