Many successful tech stocks like Nvidia, Microsoft and Apple are priced in line with each company’s substantial market shares and cash flows. So, some investors who want to get in on the hot tech sector, can’t do so financially. However, a select few stocks within tech don’t yet have the recognition as the top dogs but are on their way to similar success.
These three climbing tech stocks are positioned to spring upward within the tech sector. Each has its unique trait and service that caters to a broad audience and a current demand within tech that has brought them great success. The best part? They are miles cheaper than the more popular tech stocks.
We’ll detail the nuances that make these stocks so exciting for investors who are looking to share the soaring profits of tech but don’t want to break the bank doing so.
Tencent (TCEHY)
Tencent (OTC:TCEHY) is a Chinese tech giant with a presence in almost every sector of the infinitely broad sector. Those include video games, fintech, cloud computing, digital advertising and music subscription services.
China’s macroeconomic conditions haven’t been the best since last year, resulting from strict regulations and less consumer spending. Tencent was undoubtedly affected by the headwinds. But, it has managed to find success even in the roughest of conditions.
The company beat estimates for EPS and revenue in the most recent quarter, reporting a 23% increase in gross profit and a 6% in revenue year-over-year (YOY). The net margin for the period increased by 10% compared to last year. And profit attributable to equity holders is up 54% year-over-year (YOY).
Further, Tencent pulled off such an impressive quarter through the diverse success of its vast segments. Truly, games are Tencent’s main cash cow. But this quarter demonstrated the impact of diverse revenue streams.
Profits surged YOY, as music subscriptions increased 20%, video subscriptions increased 8%. User time on video accounts increased 80% (digital advertising revenue from the platform), and the company reported many upgrades in all categories.
Tencent is slowly overcoming the headwinds it faces operating out of China but has proven its ability to succeed and show excellent potential. The best part is that the stock is still wildly cheap, considering its recent growth. Therefore, there is no better time for investors to tune in while it rides this momentum.
Walmart (WMT)
Walmart (NYSE:WMT) is not what investors typically consider a tech stock. Yet, the retail mega-giant has staked its claim within some of the biggest tech categories. Walmart is seeing wild success in digital advertising and its e-commerce segment, which has had a positive effect on its top line.
The retail superstar smashed estimates in Q1, reporting 6% revenue growth and adjusted operating income growth of 13.7% YOY. This impressive growth included a 21% increase in global e-commerce sales and a 24% growth in global advertising.
While brick-and-mortar retail will always be Walmart’s top seller, the growth in Walmart’s tech segments is undeniable. Although Walmart is not a typical tech stock, investors would still be investing and profiting from the tech sector’s overall growth and benefiting from the stability and success the company’s retail segment brings.
Walmart is on its way to immense success among the greats of e-commerce and other tech giants. And the best part about this stock is its phenomenally low price. There are a few reasons to pass this opportunity up, and growth in tech will only carry Walmart higher.
Intel (INTC)
Intel (NASDAQ:INTC) has established itself as a top dog within processing but lost out big time in semiconductor chips to companies like Taiwan Semiconductor and ON Semiconductor. However, following the reinstatement of Pat Gelsinger as Chief Executive Officer (CEO), Intel has committed time and money to build the foundation for a ferocious comeback. And that comeback starts now.
Intel had a lot of ground to cover to catch up to Taiwan Semiconductor. But it was able to secure investments from various sources. That includes an $11 billion equity acquisition from private equity firm Apollo to fund its huge gamble on revamping its chip manufacturing.
The massive investments the company received don’t stop there. Also, Intel received a whopping $8.5 billion from the Biden administration to further improve existing manufacturing plants and build new ones across the U.S., including Arizona, New Mexico, Ohio and Oregon locations.
The surge of AI applications within tech means that semiconductor chips are in demand more than ever. So, Intel plans to be at the top of the supply chain. It also has high hopes for its GPU accelerator business, and at its current price, investors shouldn’t hesitate to buy shares before the price explodes.
On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
