10 Hot Tech Stocks To Buy Now
In this article, we discuss the 10 hot tech stocks to buy now. If you want to read about some more hot tech stocks to buy now, go directly to 5 Hot Tech Stocks To Buy Now.
2022 was a challenging year for the tech industry and the economy as a whole, with high and persistent inflation causing significant growth and performance issues. In 2020, the COVID-19 pandemic led to an easing and printing of money that had a steroid-like effect on the economy. However, in 2022, when the Federal Reserve raised interest rates at a rapid pace and implemented measures such as quantitative tightening, the economy returned to its pre-pandemic state and faced significant challenges.
In 2022, the tech industry composite, NASDAQ, ended the year down 32.96%. The year 2022 saw significant losses, with tech giants like Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and NVIDIA Corporation (NASDAQ:NVDA) witnessing a decline in their stocks after announcing their earnings. The overall losses in the market have resulted in a combined loss of $3 trillion in market capitalization, mainly from a handful of leading stocks. Apple was the leading company in the tech industry ending the year 2022 with a market capitalization of $2.05 trillion.
For 2023, the outlook is somewhat positive, a report from Gartner forecasts a 2.4% growth in worldwide IT spending. The report suggests that the industry may recover in the upcoming year, providing hope for investors and stakeholders in the tech sector. The tech industry is expected to increase its growth, with a focus on digital transformation and the integration of emerging technologies, according to another recent report. Investment in digital transformation is expected to reach a staggering $6.8 trillion by 2023.
The COVID-19 pandemic accelerated the shift towards digital, and companies are expected to continue investing in technology to improve their operations and customer experiences. The increasing demand for remote work and online shopping has also led to a rise in demand for devices such as laptops and smartphones. A report by TrendForce projects that the global 5G market will reach a value of $14.5 billion in 2023, driven by the promotion of 5G private networks by enterprises and the upgrading of equipment for small cells and 5G FWA (fixed wireless access).
The growth of wearables faced challenges in 2022, with a 6.9% decrease in global shipments according to the IDC Tracker. The demand for wearables was impacted by factors such as rising inflation, concerns about a potential recession, increased spending on non-tech categories, and the rapid growth experienced in the market in the previous two years. However, the market is expected to bounce back in 2023, driven by a rise in demand for watches and hearables from new buyers in emerging markets and replacement purchases in mature markets.
2023 has seen a sharp uptrend since the start of the year, NASDAQ tech index has risen 8.8% and reached a market cap of $18.219 trillion. Most tech firms have seen growth. Additionally, the Federal Open Market Committee’s rate hike decision on February 1 is also highly anticipated as it can greatly impact the stock prices of tech companies and the tech sector overall.
Our Methodology
For this article we first used stock screeners to identify tech stocks that have gained at least 5% year to date in 2023 and have an average 3-month volume of more than 5 million as of January 31. From this resultant dataset we picked the stocks with highest volumes and share price gains. The list is ranked in ascending order of average 3-month share volume.
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Hot Tech Stocks To Buy Now
10. SOBR Safe, Inc. (NASDAQ:SOBR)
Number of Hedge Fund Holders: 2
YTD Perf: 89.49%
3 Month Avg Volume: 729,258
SOBR Safe, Inc. (NASDAQ:SOBR) develops non-invasive alcohol detection and identity verification systems. On January 31, the shares of SOBR Safe increased by up to 14% following the announcement that the initial two deployments of SOBRcheck in the oil and gas sector were successful, resulting in growth across all TerraTech Services sites in the United States.
At the end of the third quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $3.9 million in SOBR Safe, Inc. (NASDAQ:SOBR).
Just like Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and NVIDIA Corporation (NASDAQ:NVDA), SOBR Safe, Inc. (NASDAQ:SOBR) is one of the hot tech stocks to buy now according to elite investors.
9. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 18
YTD Perf: 77.39%
3 Month Avg Volume: 2.4M
C3.ai, Inc. (NYSE:AI) operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. C3.ai has benefited due to the increasing interest in stocks related to artificial intelligence after the soaring popularity of OpenAI tools like ChatGPT on the internet across the world.
On October 10, Canaccord analyst David Hynes maintained a Hold rating on C3.ai, Inc. (NYSE:AI) stock and lowered the price target to $14 from $16, highlighting that the company’s product was uniquely positioned to solve complex analytics problems for the world's largest companies.
At the end of the third quarter of 2022, 18 hedge funds in the database of Insider Monkey held stakes worth $71.9 million in C3.ai, Inc. (NYSE:AI), compared to 17 in the previous quarter worth $1 billion.
8. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 15
YTD Perf: 385.38%
3 Month Avg Volume: 3.6M
BigBear.ai Holdings, Inc. (NYSE:BBAI) provides artificial intelligence and machine learning for decision support. On January 12, BigBear.ai was granted a contract with a value of $900 million with indefinite delivery and quantity terms by the United States Air Force. This contract provides BigBear.ai the opportunity to bid on task orders to provide the Air Force with capabilities, systems, and simulated environments as a main contractor.
At the end of the third quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $3 million in SOBR Safe, Inc. (NASDAQ:SOBR), compared to 14 in the preceding quarter worth $8.2 million.
7. Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS)
Number of Hedge Fund Holders: 1
YTD Perf: 17.65%
3 Month Avg Volume: 9.6M
Powerbridge Technologies Co., Ltd (NASDAQ:PBTS) provides software application and technology solutions and services primarily in China. On November 14, the shares of Powerbridge technologies rose 3% after it acquired a 19% stake in DTI Group, an Australia-based solution provider company. It functions as a platform developer and service provider for the UN's Digital Trading Infrastructure & Online Dispute Resolution initiative, which aims to improve digital trade connectivity and operations between online cross-border trade platforms and physical trade centers.
At the end of the third quarter of 2022, 1 hedge fund in the database of Insider Monkey held stakes worth $166,000 in Powerbridge Technologies Co., Ltd (NASDAQ:PBTS), compared to 2 in the preceding quarter worth $91,000.
6. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 74
YTD Perf: 20.65%
3 Month Avg Volume: 15.6M
Micron Technology, Inc. (NASDAQ:MU) designs, manufactures and sells memory and storage products worldwide. On December 21, Micron Technologies declared a quarterly dividend of $0.115 per share, in line with previous. The forward yield was 0.9%. The company has benefited from the easing of recession fears in the United States over the past few months. Despite macro slowdowns, chip spending in 2023 is expected to be on par with 2022 levels, boosting the outlook for firms like Micron.
On December 7, Wells Fargo analyst Aaron Rakers maintained an Overweight rating on Micron Technology, Inc. (NASDAQ:MU) stock and lowered the price target to $70 from $75, noting that it would not be surprising to see shares trading lower ahead of the upcoming first-quarter earnings release.
At the end of the third quarter of 2022, 74 hedge funds in the database of Insider Monkey held stakes worth $2.5 billion in Micron Technology, Inc. (NASDAQ:MU), compared to 69 in the preceding quarter worth $2.2 billion.
In addition to Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and NVIDIA Corporation (NASDAQ:NVDA), Micron Technology, Inc. (NASDAQ:MU) is one of the hot tech stocks to buy now according to elite investors.
In its Q2 2022 investor letter, Meridian Funds, an asset management firm, highlighted a few stocks and Micron Technology, Inc. (NASDAQ:MU) was one of them. Here is what the fund said:
“Micron Technology, Inc. (NASDAQ:MU) is a leader in DRAM and NAND memory production. We invested in the stock in the third quarter of 2019 during a cyclical downturn in the memory industry. Our rationale was that, while the memory industry is cyclical, we believed there are strong secular drivers in place that will lead to higher peaks and long-term growth. Our secular thesis is based on our conviction that the quest for ever-increasing compute speeds will increasingly rely on memory to solve bottlenecks and that increased memory content in nearly everything from mobile phones to automobiles will drive demand. Micron’s stock traded lower during the quarter due to macroeconomic concerns that led to lower earnings expectations. We increased our stake in the company, as we believe our secular thesis remains intact. We wanted to take advantage of what we view as temporary cyclical concerns that caused the stock to trade at less than 10x reasonable trough earnings per share (EPS) estimates and less than 7x recent peak EPS.”
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Disclosure. None. 10 Hot Tech Stocks To Buy Now is originally published on Insider Monkey.
