Although the stock market has gone through an unexpected rally over the last three days, the Coronavirus is still having a massive negative impact on the global economy. The U.S. government and its counterparts around the world are combatting this with extensive stimulus measures. Relief programs will help businesses and households to stay afloat in the short term. The following Tech Stocks are those that are likely to come back quickly when the pandemic fades and the economy starts to grow again.
Apple (NASDAQ: AAPL)
Despite temporary economic pain caused by the Coronavirus, Apple remains one of the world’s most valuable and desirable brands. Although Apple doesn’t lead the laptop or smartphone market in terms of total volume, it is ahead in margins. It makes more margin per device than any other manufacturer. Apple is still selling and delivering its devices during the outbreak, thanks to online purchases and a robust distribution network.
With new devices being released this quarter and later in the year, Apple has the potential to come back stronger than it was at the start of 2020.
Qualcomm (NASDAQ: QCOM)
The current growth in the stock market could be short-lived, but Qualcomm still has advantages that will help it in the long term.
The company is a major producer of 5G integrated chipsets, which will be used extensively throughout Asia, Europe, and the United States over the next five to ten years. Qualcomm is also the owner of numerous 5G and mobile technology patents that will drive revenue well beyond 2021.
The company has lost almost a third of its market value over the last two months, but this only makes the stock more attractive today.
Intel (NASDAQ: INTC)
Intel is America’s largest semiconductor manufacturer. The Coronavirus outbreak has exposed performance vulnerabilities in data centers and computers around the world. With hundreds of millions of people now working and learning from home under quarantine orders, shortcomings in technology will become apparent. Analysts expect to see a surge in spending for datacenter hardware as well as personal computers and laptops over the rest of this year.
Intel, as a major supplier to both consumers and businesses, is in the best position to take advantage of high demand.
The Volatile Market Won’t Last Forever
America and other leading nations around the world have shown that there are ways to minimize damage and stimulate recovery, even during a global pandemic. Investors that have lost out in the market downturn should take confidence knowing that there’s a lot of opportunity for growth on the other side of this crisis.
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