4 Large-Cap Technology Stocks To Buy This Earnings Season

Lockdown impositions across the world, in a bid to curb the spread of COVID-19, have been taking a toll on the economy. The pandemic has caused disruptions in major sectors and economic zones, resulting in a full-blown global crisis due to the slowdown in productions and operations, and sluggish spending patterns.

As a result, second-quarter corporate earnings are expected to have suffered significantly. According to the latest Zacks Earnings Preview article, total earnings for the S&P 500 members will likely be down 44.1% year over year on 10.9% lower revenues in the to-be-reported quarter.

Though the coronavirus outbreak has had a sector-wide impact, the U.S. tech sector seems more resilient compared with the other sectors. Per the Earnings Preview article, tech sector earnings are expected to decline 13.5% on 1.2% lower revenues.

Why Tech Sector Could Outshine in Q2?

The coronavirus outbreak has, surprisingly, opened up newer avenues of growth for several industries in the broader tech sector. Due to the global lockdown, the adoption rate of Internet-based services and apps has been increasing rapidly as people are compelled to stay indoors.

Moreover, the work-from-home wave globally is bolstering demand for advanced technology-based virtual meetings and conference tools. Additionally, the work-and-learn from home necessity has propelled demand for PCs, notebooks, peripheral accessories, and cloud storage.

All these, in turn, are aiding growth for high-speed Internet services. Additionally, the rising demand for robust communication networks is another positive. Further, the growing proliferation of AI technology, and cloud computing products and services in managing this pandemic situation is a tailwind.

All these trends are stoking demand for semiconductor chips. Notably, Micron Technology (MU - Free Report) reported better-than-expected third-quarter fiscal 2020 results last month. The company stated that the lockdown situation has spurred significant chip demand from data-center operators.

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