While 2020 was a banner year for tech stocks, the sector appears to be taking a breather this year. Sure, when thinking of hot stocks to buy now in the stock market, most would be turning towards reopening plays. After all, pandemic conditions continue to improve locally, and consumers are keen to spend their saved-up funds this summer. However, as tech stocks continue to find solid footing this year, some investors may see an opportunity.
This could be the case seeing as some of the top names in tech continue to innovate regardless of their stock performance. For instance, tech giant Microsoft (NASDAQ: MSFT) recently launched its first cybersecurity executive council in the Asia Pacific region. This move would be in line with the recent surge in cyberattacks globally over the past few months. Not only are digital threats increasing in frequency, but they are also growing in terms of scale. To combat this, enterprise tech companies such as ServiceNow (NYSE: NOW) continue to bolster their existing collaborations with Microsoft on the cybersecurity front as well. At the same time, private equity firms also see massive value in tech companies. The recent $5.3 billion acquisition of cloud computing company Cloudera (NYSE: CLDR) by Clayton, Dubilier & Rice, and KKR would be a prime example of this.
Not to mention, blockchain tech companies such as Coinbase (NASDAQ: COIN) continue to make headlines right now. Yesterday, the company made two significant announcements. Firstly, users can now add Coinbase cards into their Apple Pay (NASDAQ: AAPL) and Google Pay (NASDAQ: GOOGL) digital wallets. Next, the cryptocurrency exchange platform will allow Pro users to trade Dogecoin starting this week. Overall, the tech industry is clearly not short on exciting news for investors to jump on now. As such, here are three in focus in the stock market today.Tech Stocks To Buy [Or Avoid] In June 2021Nvidia Corporation
Right off the bat, we will be looking at semiconductor chip maker, Nvidia. In short, the company designs and markets graphics processing units (GPUs) and system-on-a-chip (SoC) units. Through its GPUs, Nvidia caters to the needs of the consumer gaming and cryptocurrency mining industries. At the same time, the company’s SoCs serve as vital components in the mobile computing and automotive manufacturing industries. Given the increasing demand for Nvidia’s wares across several markets, NVDA stock could be a viable play for tech investors now.Source: TD Ameritrade TOS
In fact, investors could be eyeing the company’s shares now thanks to its latest announcement. Namely, Nvidia will be launching its RTX 3080 Ti (Ti) premium GPU tomorrow at a retail price of $1,199. According to Nvidia, the Ti delivers 1.5 times the performance over its previous generation predecessor. Now, there is still immense demand for the company’s current RTX 30 lineup. Because of that, it would not surprise me to see the Ti selling out soon as well.
Furthermore, Nvidia mostly saw green across the board in its recent quarter results posted last week. In it, the company saw massive year-over-year surges of 83% in total revenue and 108% in net income. Nvidia posted an earnings per share of $3.03 on revenue of over $5.6 billion, beating consensus estimates. Now, as semiconductor chip makers ramp up production to meet rising consumer orders, NVDA stock could be in focus. Having read all this, would you consider it worth investing in now?
Read MoreCanaan Inc.
Another tech company making waves on the stock market now would be Canaan Inc. For some context, Canaan is a China-based computer hardware manufacturer. Essentially, Canaan specializes in producing blockchain server tech and application-specific integrated circuit solutions. The likes of which serve as vital components of Bitcoin mining operations. On top of all that, the company also has an active artificial intelligence (AI) division that works on creating AI-based chips. Yesterday, CAN stock surged by over 22% during intraday trading. Investors appear to be reacting to its latest quarter results.Source: TD Ameritrade TOS
Notably, the company posted a blowout quarter. In terms of total net revenue, Canaan saw a massive 489% surge year-over-year. This was followed by a 122.2% increase in total computer power sold over the same period. According to CEO Nangeng Zhang, the recent rally in Bitcoin’s price drove customer demand for its mining machines higher during the quarter. Zhang also explained that Canaan strategically improved its mining machines by improving key foundry partnerships. Because of this, the company also ended the quarter with “a large number of pre-orders from long-term clients”, significantly enhancing Canaan’s cash position.
In the long run, we could be looking at exciting times ahead for Canaan. If anything, this would be thanks to its growing global customer base. Throughout the quarter, Canaan saw its revenues generated from overseas markets surge by 78.4% year-over-year. Subsequently, Canaan plans to continue investing in its overseas customers to help grow its core business now. Would all this make CAN stock a buy for you?
[Read More] 3 Value Stocks To Watch Right NowC3Ai. Inc.
Following that, we have C3Ai Inc., a leading provider of enterprise AI software for accelerating digital transformation. The California-based company offers organizations a comprehensive stack of integrated services. In particular, this includes its C3Ai Suite, Applications, CRM, and Ex Machina. The applications for its services range from large-scale AI app development, industry-specific software-as-a-service AI utilities and customer relationship management infrastructure. Not to mention, the company’s Ex Machina service acts as a no-code AI solution, applying data science to everyday issues in businesses. More importantly, investors appear to be flocking towards AI stock now seeing as it jumped by over 16% Tuesday.Source: TD Ameritrade TOS
All this would likely be thanks to its latest partnership expansion. Specifically, C3Ai and Royal Dutch Shell (NYSE: RDS-A) revealed a five-year renewal of their existing agreement. Now, the primary focus of the current deal would be to accelerate the deployment of C3Ai’s enterprise applications across Shell. In theory, C3Ai’s services would help address reliability, asset integrity, and process optimization across Shell’s businesses via the Shell.ai program.
Shell CTO Yuri Sebregts had this to say, “The Shell.ai program has been a foundational element in the development of our digital strategy, and C3Ai has been a key partner in helping to scale our innovative products.” With Shell looking to drive cleaner energy and climate initiatives now, its partnership with C3.Ai is likely more crucial than ever. All in all, this is a solid play by C3.Ai as it continues to work with an oil industry giant. Given all of this, will you be adding AI stock to your portfolio now?