Last year the tech sector had been one of the hottest sectors in the market as the coronavirus pandemic pummelled most of the other sectors into the ground.
Hence, it was perhaps not a surprise that in 2021, the tech sector did not perform as well as one would have expected. However, that doesn’t mean that tech stocks are suddenly not working looking into. Here is a look at three tech stocks that could be all set for a strong turnaround in 2022.
It may not be a particularly well-known company but when it comes to the extent of its business, it is at a different level altogether. The company’s products help in powering a wide range of computing equipment at this point in time. As it happens, in 2020, Taiwan Semiconductor had a monster 60% share of all chip manufacturing for that year.
Although the stock has struggled, the business has not. In the first three quarters of 2021, the company has managed to bring in revenues of as much as $41 billion and that works out to a year-on-year jump of 17.5%. Hence, investors could do well to keep the Taiwan Semiconductor stock in their sights.
Content delivery and network security are the two spaces in which Fastly is involved. However, the stock has struggled massively over the course of the past year, and in the past 52 weeks, it has declined by as much as 65%. Investors seem to believe that the company has possibly hit a wall with regards to further growth but it should be noted that might not be the case.
If that is so, then a strong rebound from the Fastly stock could happen and if that does, then it could result in considerable gains for investors. The company’s relationship with TikTok had resulted in a sharp decline in the stock price but although the Chinese app made up for as much as 10% of its business, the reason from investors was perhaps a bit over the top. In the second quarter, Fastly managed to record year on year growth of 14% and hence, a rebound is quite likely.
Last but not the least, it is the engineered materials producing company II-VI which investors could consider tracking if they are looking into tech stocks with possibilities of making a rebound in 2022. The company had been involved in a bidding slugfest for the company Coherent earlier on this year and that had proven to be a problem. The II-VI stock is down 24% so far in 2021.
Moreover, the acquisition of Coherent is expected to put a lot of debt in its books and that may have spooked investors. However, it should be noted that the company has a history of acquiring businesses and integrating them successfully. Hence, the worries about the Coherent acquisition are perhaps vastly overblown.