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.
Sign up for Kiplinger’s Free E-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.
-
Higher Summer Costs: Tariffs Fuel Inflation in JuneTariffs Your summer holiday just got more expensive, and tariffs are partially to blame, economists say.
-
Don’t Miss Alabama Tax-Free Weekend 2025Tax Holiday Ready to save? Here’s everything you need to know about the 2025 back-to-school Alabama sales tax holiday.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have TodayBerkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have TodayProcter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Is It Time to Invest in Europe?Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
-
Stock Market Today: Stocks Swing Higher After Early SlumpNegative earnings reactions for Nike, FedEx and Micron kept pressure on the main indexes, though.
-
Stock Market Today: The Dow Adds 15 Points To End Its Losing StreakEquity indexes opened higher but drifted lower as markets priced in new Fed forecasts.
-
Why Is Warren Buffett Selling So Much Stock?Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have TodayGoogle parent Alphabet has been a market-beating machine for ages.
