Tech stocks have been hit hard by rising inflation in 2022 and fears of a recession slowing consumer spending. As a result, the Nasdaq-100 technology sector Index is down more than 34%. But these stocks won’t be around forever, which could make now a good time to invest for the long term.
Patient investors are in good hands with tech stocks because many of the world’s biggest tech companies have seen consistent growth for decades. Here are three tech stocks that can help you retire comfortably.
1. Microsoft
Forty-seven years since its inception. Microsoft (MSFT 2.26%) It continues to be a stock that investors trust. With behemoth products like Windows, Xbox and Office, the company is a dominant player in every industry it operates in.
The company plans to buy Activision Blizzard It makes it the third largest game company by revenue behind it Tencent And Sony. Meanwhile, Windows As of 2013, it has been the operating system installed on at least three-quarters of the world’s PCs and laptops, accounting for 76.3% of the market by June 2022.
The company’s cloud computing business is particularly viable. In the year In the second quarter of 2022, Microsoft’s cloud computing service Azure accounted for 24% of cloud infrastructure spending, up from 22% last year, making it the second most popular service. Amazon Web services. The success is good for the company’s income; According to Grand View Research, the cloud computing market is expected to grow at an annual rate of about 16 percent and exceed $1.5 trillion by 2030.
As of July 2021, the company’s revenue grew 18 percent to $198 billion, while free cash flow rose 16 percent to $65 billion. Microsoft is the obvious choice for long-term investors.
2. Apple
Investing in one of the world’s most innovative technology companies; Apple (A.P.L 1.66%)It’s a safe way to make your money work for you.
Warren Buffett admits from his heart that his company is his biggest asset. Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B ). The company headed by Buffett It ended the second quarter of 2022 with about 895 million Apple shares worth $122 billion as of June 30 — 41 percent of Berkshire’s portfolio.
It’s no surprise that Buffett gave the company such a vote of confidence. In a tough year-to-date market for tech stocks, shares of the iPhone maker fell 15 percent. Nasdaq CompositeAt the same time, a 27% decrease, which shows the relative stability of Apple. The company has posted rising revenue and net income for the past three years despite the pandemic. In the year In 2019, Apple’s net sales reached $260.2 billion. In 2021, it was $365.8 billion. Net income rose 71.3 percent to $94.7 billion over the same period.
Apple in 2010 Third-quarter revenue in 2022 remained flat at a record $83 billion. The company has forecast strong iPhone sales in 2023 and has various promising launches in the second half of 2022, such as the iPhone 14, the redesigned Apple Watch, new iPads and more.
3. AMD
Advanced Micro Devices (AMD 2.96%) It has been in business for over 53 years and continues to see impressive growth in various segments. The semiconductor company’s main sources of revenue are its consumer division, which supplies chips to various PC manufacturers, and its data center business.
In the second quarter of 2022, the client segment was AMD’s largest source of revenue, generating $2.2 billion, up 25 percent year-over-year. Meanwhile, total revenue grew 70 percent year over year to $6.6 billion. In the year The figures are impressive as the PC market is hit hard in 2022, with PC shipments down 15.3% from 2021 due to lower consumer spending.
In the company’s second-quarter 2022 earnings call, AMD said it had gained nine consecutive quarters of consumer market share, thanks to a share steal. Intel. AMD ended the second quarter with 20.6% of the desktop PC market and 24.8% of the notebook market, according to Mercury Research. The figures are a huge increase from 2021 to 17.1% for desktops and 20% for notebooks.
In addition to PC market share gains, AMD has shown promising growth in the gaming industry. The company supplies semi-custom chips to Microsoft, Sony and Valve, which helped its gaming business grow by 32 percent in the second quarter. AMD will likely be able to maintain relationships with game console manufacturers for years, adding to its value.
A.D.D. Given its growing market share in the PC market and promising financials, the stock looks set to gain for years to come.
John McKee, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the Motley Fool’s board of directors. Danny Cook has no position in the mentioned stocks. He has a position in the Motley Fool and recommends Activision Blizzard, Advanced Micro Devices, Amazon, Apple, Berkshire Hathaway (B shares), Intel and Microsoft. The Motley Fool recommends the following options: Long January 2023 $200 calls on Berkshire Hathaway (B shares), Long January 2023 $57.50 calls on Intel, Long March 2023 $120 calls on Apple, Short January 2023 $200 puts on Berkshire Hathaway (B shares). Puts short January 2023 $265 calls on Berkshire Hathaway (B shares), short January 2023 $57.50 calls on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
