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3 best tech stocks to buy right now



The market has been anything but predictable this year and the wild swings in stock prices that some investors have seen in their favorite stocks over the past few months may create some caution on buying stocks right now.

To be sure, the market is likely to experience greater volatility as the US grapples with high unemployment and the coronavirus pandemic. But that doesn’t mean there aren’t any big stocks in the tech sector right now.

If you’re in the market for some tech stocks to buy and hold for several years, check out what these three – Shopify (NYSE: STORE), NVIDIA (NASDAQ: NVDA), is Amazon (NASDAQ: AMZN) – have to offer.

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Image source: Getty Images.

1. Shopify: Ecommerce is the future of retail

Shopify’s stock has skyrocketed 167% since the beginning of this year as businesses of all sizes have been forced to adapt to blockages, social distances, and reduced capacity within stores. Shopify’s ecommerce platform has helped businesses set up online stores (or expand existing ones) so they can start (or continue) selling their products to customers.

The result was astronomical growth for Shopify, where sales increased 97% year-over-year in the second quarter and gross merchandise volume – the dollar amount spent on the company’s platform – jumped 119% from that. the previous year.

Some investors may be worried that they’ve already missed the Shopify opportunity, but they should consider one simple fact: Even with an influx of online shopping during the pandemic, ecommerce sales still account for only 16% of all retail sales. detail in the United States. This means that Shopify still has plenty of room to continue helping businesses bring their online stores as the market expands.

2. NVIDIA: A chip leader with a winning hand

NVIDIA may not have brand recognition in the consumer tech space that some companies do, but don’t let that stop you from considering an investment in this dominant chip company. NVIDIA’s graphics processing units (GPUs) help computers and servers deliver some of the best graphics around, and the company’s technological dominance is evident from its 80% market share in the discrete graphics market.

However, it’s not just hardcore gamers who love NVIDIA. The largest tech companies in the world are using NVIDIA GPUs to power some of their AI processes. In fact, the use of GPUs in computer servers has become so popular that NVIDIA’s data center revenues increased 167% year-over-year in the last quarter and surpassed gaming revenues for the first time.

NVIDIA offers potential investors one more reason to buy its shares right now, as the company has just agreed to buy Arm Holdings SoftBank Group for $ 40 billion in cash and stock. Once the deal is concluded, which is expected to happen within the next 18 months, it will give NVIDIA ownership of Arm’s chip designs and licenses, which is used in 90% of smartphones.

3. Amazon: a safe bet with more room to grow

Like Shopify, Amazon is benefiting from an increase in online shopping right now and will continue to benefit from the rise of this market for years to come. Amazon’s sales increased 40% year-over-year in Q2 thanks to online shopping demand and its $ 10.30 per share earnings stunned Wall Street, surpassing analyst consensus estimate of $ 1.50 per share .

Amazon continues to amass a huge swarm of loyal buyers, with the company now boasting more than 150 million Prime members, an increase of 50 million from 2018. Amazon’s ability to grow its Prime members shouldn’t be overlooked by the investors, considering there is no shortage of places to buy products online these days. Prime members spend more than the average Amazon buyer and help block users in the Amazon ecosystem.

Of course, Amazon is more than just an ecommerce game. The company’s cloud computing business, Amazon Web Services (AWS), is one of the company’s best sources of revenue and is helping Amazon enter the $ 500 billion cloud computing services market. AWS is a leader in cloud computing infrastructure with 33% of the market and its current position should help the company dominate this space for years to come.

Don’t get off the market roller coaster too early

With a global pandemic, recession, US presidential elections and high unemployment, there will certainly be more market instability in the coming months. It can be tempting to buy and sell stocks on the basis of daily news, but investors should combat this impulse. The best way to build wealth over time is to buy stock in large companies and hold them for years, not months or a few quarters.




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