2 Tech Growth Stocks To Snatch Up This Summer

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While high-growth tech stocks dominated the market last year, they failed to maintain their strength earlier this year as investors rotated out of expensive tech stocks on concerns over inflation and to capitalize on the recovering economy by betting on cyclical stocks. However, this sentiment seems to be changing. The tech-heavy Nasdaq Composite hit an intraday record high on June 22 following Federal Reserve Chair Jerome Powell’s reiteration that he believes inflation pressures will be temporary. Investors’ increasing interest in tech stocks is evident in the Technology Select Sector SPDR Fund’s (XLK) 6.2% gains over the past month compared to the SPDR S&P 500 Trust ETF’s (SPY) 2% returns.

The technology sector is well-positioned to grow as businesses, broadly, continue to digitize their operations. According to Statista, spending on IT services is expected to amount to more than $1.1 trillion in 2021.

So, we think it’s wise to now bet on NXP Semiconductors N.V. (NXPI) and Corning Incorporated (GLW). These names possess solid growth attributes and are expected to generate significant returns in the coming months.

NXP Semiconductors N.V. (NXPI)

Headquartered in Eindhoven, the Netherlands, NXPI is a semiconductor company that provides high-performance, mixed-signal, and standard product solutions. Its product portfolio includes microcontrollers, application processors, communication processors, and wireless connectivity solutions.

For its fiscal first quarter, ended April 4, 2021, NXPI’s total revenue increased 27% year-over-year to $2.57 billion. Its net income came in at $353 million compared to a $21 million loss in the prior year quarter. The company’s EPS was  $1.25 compared to an $0.08 loss per share in the year-ago period. NXPI’s revenue increased at a 6 % CAGR over the past five years.

The company’s revenue is expected to increase 22.6% year-over-year to $10.56 billion in its fiscal year 2021. NXPI’s EPS is expected to come in at $2.31 for the current quarter, ending June 30, 2021, representing a 145.7% year-over-year increase. It surpassed the consensus EPS estimates in each of the trailing four quarters.

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