Top Tech Stocks For March 2023

Dako New Energy Corp., a maker of silicon and polysilicon products used primarily for solar energy applications, topped the list of high-tech stocks in April. The growing category is led by 3D printing company Nano Dimensions Ltd., while chip testing company Aehr Test Systems is the fastest-growing technology asset.

In March, the US Federal Reserve raised interest rates for the ninth time in a year. The latest increase came amid a banking crisis caused by the collapse of tech giants Silicon Valley Bank and Signature Bank. Because technology companies are sensitive to rising interest rates, stocks in the sector have struggled during the Federal Reserve's anti-inflation campaign.

Technology stocks, represented by the Technology Select Sector SPDR Fund (XLK), have lost a tenth of their value in the past year, compared with the Russell 1000's 14% drop in the past year . The technology sector at the best price, with the fastest growth and speed. All company information as of March 21, 2023.

Technology stocks with the best value for money

Value investing is a factor-based investment strategy that involves selecting stocks that are expected to trade at undervalued prices, usually by measuring the relationship between the stock price and one or more of the company's fundamentals. . A common measure of value is the price/earnings (P/E) ratio.

Value Investors If a company is cheap relative to its equity value (in this case measured by its P/E ratio), the share price may rise faster than others when the share price rises. Significant. Companies. These are the tech stocks with the lowest P/E ratios over the past 12 months.

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• Daqo New Energy Corp .: Daqo is a Chinese manufacturer of monocrystalline silicon and polycrystalline silicon, mainly producing products used in solar energy. The company's revenue fell by almost 30% between the third and fourth quarters of last year.
• Avnet Inc.: Avnet provides supply chain and logistics services, distribution and design support for electronic components. The company ships about 283 billion devices a year and employs 15,300 people.
• Canaan Inc.: Canaan is a Chinese computer hardware company that designs and sells Bitcoin mining hardware. Fourth-quarter revenue was 391.9 million yuan (about $56.8 million), down 82 percent from the previous quarter.
• Arrow Electronics Inc.: Arrow provides products, solutions and services focused on business computing.
• Himax Technologies Inc .: Himax is a Taiwanese semiconductor company that does not have a factory. Himax recently announced that it will introduce its new WiseEye intelligent image recognition system with ultra-low power consumption at the end of March.

The fastest growing technology stocks

Here are the top tech stocks, ordered by growth model, ranking the companies by their most recent quarterly annual percentage growth with a 50/50 weighting and their most recent quarterly earnings per share (EPS) growth.

Both sales and profits are critical to business success. Therefore, ranking companies based on a single growth indicator for that quarter (such as tax law changes or cost restructuring) exposes them to accounting errors that can make some numbers unrepresentative of the current quarter as a whole. Companies with quarterly earnings per share or earnings growth of more than 1,000% were excluded from the list.

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• Nano Dimension Ltd.: 3D printing company Nano Dimension offers nano-based multilayer PCBs and inks. On March 27, the company was acquired by Murchinson Ltd., Anson Advisors, Inc. Filed in court. and Boothby Fund Management for allegedly attempting to manipulate the company's stock price and illegally take control of the company. Note that NanoDimensions does not have EPS growth data in the table above because earnings were negative in the most recent quarter.
• Business Desk Inc. Business Desk is an advertising technology company that provides an online platform for managing video, social media, mobile and other advertising campaigns.
• Cambium Networks Corp .: Cambium sells wireless broadband products to education, enterprise, hospitality, retail, industrial and government customers. Increased revenue from enterprise and point-to-point products contributed to growth in the fourth quarter.
• Roper Technologies Inc .: Roper is a manufacturer of pumps, fluid handling systems, scientific and medical instruments, analytical instruments and other industrial hardware and software. The company's next dividend of $0.6825 per share will be paid to shareholders on April 21 on April 6, 2023.
• ServiceNow Inc .: ServiceNow is a cloud computing platform focused on optimizing digital workflows and providing IT management services to enterprise customers.

Momentum investing is a factor-based investment strategy that involves investing in stocks that are rising in value faster than the broader market. Momentum investors believe that stocks that have outperformed the market will often continue to do so because the factors that caused them to outperform will not suddenly disappear. Also, other investors who want to take advantage of the stock often buy the stock, pushing it up. Here are the tech stocks with the biggest total returns over the past 12 months.

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• Aehr Test Systems: Aehr is a California-based company that supplies semiconductor test systems.
• First Solar Inc.: First Solar designs and manufactures solar modules. By the end of 2022, First Solar says it will invest $1.1 billion to build its fourth U.S. facility in Lawrence County, Alabama.
• Super Microcomputer Inc .: Supermicrocomputer or Supermicro manufactures energy-efficient servers and storage systems and provides global support services. In late March, Supermicro introduced a new AI development platform called SYS-751GE-TNRT-NV1, released in partnership with NVIDIA Corporation. (NVDA)
• LSI Industries Inc. - LSI is a manufacturer of high efficiency LED solutions for commercial lighting.
• Impinj Inc. : Impinj is an RF solutions company that sells RF ICs, readers, antennas, gateways and related software to customers worldwide.

The impact of inflation on technology stocks

Historically, technology stocks have lagged behind other sectors during periods of rising inflation. Conversely, when inflation falls, the group usually outperforms the broader market. For example, the tech bull market between 2009 and 2021 coincided with a historically low annual inflation rate of 1.7%. In 2022, however, the tech sector led the broader market lower on rising inflation, which hit a 40-year high of 9.1% in June.

Why are tech stocks so sensitive to inflation? It's all about interest rates. Rising inflation suggests the Federal Reserve may raise the federal funds rate to dampen demand. High prices hurt tech companies in two ways. First, consumers and businesses will have less income from purchasing products and services, which will reduce corporate profits. Second, technology companies borrow heavily to finance start-up costs, patent costs, and innovation, and as interest rates rise, the cost of servicing that debt increases.

The opposite happens when inflation falls. This time, the Fed cut interest rates, boosting consumer demand and lowering the cost of borrowing for tech companies.

Advantages of technological actions

Investment in innovation ; Investing in technology stocks allows investors to support revolutionary ideas that can improve people's lives. Technology companies of all sizes, be it Apple Inc. or Apple Inc., are constantly pushing the boundaries to become a market leader in innovative technology. (AAPL) A startup that has a new health feature for the iWatch or is developing a revolutionary semiconductor for the automotive industry.

Growth potential: Technology stocks offer high income potential, and investors are generally willing to pay a premium for future growth. For example, since March 28, 2023, the technology sector has traded 29 times. By comparison, the energy and financials sectors have price-to-earnings (P/E) ratios of 6.4 and 14, respectively . While the biggest gains can be made in small-cap tech stocks, even large-cap tech titans like FANG : Meta Platforms Inc. (meta), Amazon.com Inc. (AMZN), Netflix Inc. ( NFLX ) and Alphabet Inc . ( GOOGL ) has recorded an annualized return of 22% over the past decade to March 25, 2023.

The comments, opinions and analysis contained herein are for informational purposes only and should not be construed as individual investment advice or recommendations to invest in securities or adopt investment strategies. Although we believe the information provided in this document to be reliable, we do not guarantee its accuracy or completeness. The views and strategies expressed in our content may not be suitable for all investors. Because market and economic conditions change rapidly, all opinions, judgments and analyzes contained in our content are subject to change without notice as of the date of publication. The article does not claim to be an exhaustive analysis of every material fact relating to any country, region, market, industry, investment or strategy.

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