The tech sector has been rather choppy of late.
Momentum levels are near historic highs… FAANG stocks haven’t led since September of 2020… the potential for higher interest rates is putting even more pressure on tech stocks… and I haven’t even gotten to more pressure from China yet.
There’s no two ways about it, folks…
I think it’s safe to say we all assumed Joe Biden would take it easy on China. I mean, so did the stock market... but that doesn’t look to be the case. At least not right now, so it’s putting undue pressure on tech stocks.
But I’ve still managed to find some hidden gems in the tech sector…
It looks like the only group of stocks thriving within the broader tech sector is the chip industry. But semiconductors have always traded uniquely from tech names as a whole.
Chip stocks have been separating themselves from the broader market for quite a while now, and I anticipate that trend to continue.
I’m not saying I’m bullish on the tech sector… at least for the time being. But I’ve realized that some tech stocks are actually important to the economy reopening, and will ultimately benefit from Biden’s planned infrastructure growth.
That’s why I’ve got my eye on two hidden gems in the tech sector that have the potential to amass big momentum over the next several months…
And as tech stocks wait for earnings to confirm if they can generate a lot more cash for investors and their shareholders.
The first stock on my list is a software company that develops, manufactures, licenses and sells computer software services for the design, construction and operation of infrastructure. So if a bridge or highway is being built, there’s a good chance this hidden gem in the tech sector is involved.
And I have a price target of $55 per share on this stock over the next quarter…
So, yes... There are still hidden gems in the tech sector despite it being mostly overbought. So check out my short video below to get the names of the two I’m targeting, and feel free to leave your thoughts in the comments section below.
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