Investors have been captivated by a quintet of technology stocks known as the FAANGs: Facebook, Amazon.com, Apple, Netflix and Google’s parent, Alphabet. The FAANGs may still be strong performers, but they aren’t the only way to make money in tech stocks.
A couple of semiconductor chip makers look compelling: Micron Technology (MU, $38) and Western Digital (WDC, $87). Each has captured a large part of the global market for certain types of memory chips (“DRAM” for Micron and “flash” for Western). Industry consolidation has resulted in strong prices for memory chips. And both firms benefit from robust demand for mobile devices, graphics cards and data centers, says Paul Wick, comanager of Columbia Seligman Global Technology fund. The shares look reasonably priced, he adds, and well positioned for gains. And Western pays a nice dividend: The stock yields 2.3%.
Analysts expect sales for Adobe Systems (ADBE, $147), which makes software for such creative applications as graphics, digital media and web design, to rise 19% over the next 12 months. Customers are signing up for more of the firm’s subscription-based software products and new digital marketing services. Brokerage firm Credit Suisse recommends the stock and expects shares to reach $170 over the next 12 months.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
Dow, S&P 500 Slip on December Rate Cut Worries, Nvidia Boosts Nasdaq: Stock Market TodayNvidia became the first company ever to boast a $5 trillion market cap, but it wasn't enough to lift the Dow and the S&P 500.
-
Stock Market Winners and Losers of the 'Big, Beautiful' BillDefense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
