Tech stocks have rallied on the back of Amazon (AMZN) and Apple (AAPL) since Friday when the company’s beat analysts’ expectations, pushing the Nasdaq tech-heavy index 4% up for the week.
However, veteran tech investor Paul Meeks (pictured) suggests two semi-conductor sector firms could be potential top long-term picks poised to outperform in the tech sector.
Facebook to stay at the top in the social media realm
Meeks, head of the Wireless Fund, said that even though social media platforms like Snapchat and Pinterest have hogged the spotlight due to their strong performance during 2020, Facebook (FB) is likely to remain the best pick out there as it dominates the digital advertising landscape.
He added that while he may take positions in smaller tech stocks, the investor only sees them as short-term trades rather than long-term picks, he told CNBC’s Trading Nation.
Semi-conductor picks from Paul Meeks
Meanwhile, the tech investor said his favorite investment ideas were long-term picks, pointing to two names within the semi-conductor industry – companies that manufacture components required to produce computers, cellphones, and other similar devices.
“Probably my favorite ideas, not necessarily in the near term because I can’t predict the near term but over the next couple of years, are two semiconductor-related names”, said Meek, pointing to Micron Technologies, an Idaho-based chip-maker, and ASM Litography, a Dutch maker of semiconductor manufacturing equipment.
“I think they will double their stock price over the next two or three years, whereas some of the marquee tech stocks I think will continue to outperform but they can’t double from here”, Meeks said about Micro Technology.
He added: “We’re in a tech world and everything else is just revolving around us in the periphery”.
Is Micro Technologies really a buy at this point?
Micro Technologies (MU) shares are seeing downward momentum as they have been trading below their lower trend line over the past three sessions, which could point to a potential upcoming short-term drop in the price.
However, Micro Technologies posted market-beating revenues and earnings during its third quarter of the year in June but failed to reach higher levels and has missed the broad-market tech rally seen since the March bottom.
If investors were to follow Meeks advise, the current bearish set up seen in the charts could result in lower prices for Micron over the next few weeks which could provide a more advantageous entry price for buy-and-hold investors or it may also be an opportunity to short the stock.
Trusted & Regulated Stock & CFD Brokers
What we like
- 0% Fees on Stocks
- 5000+ Stocks, ETFs and other Markets
- Accepts Paypal Deposits
Min Deposit
$200
Charge per Trade
Zero Commission on real stocks
64 traders signed up today
Visit Now67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Available Assets
- Total Number of Stocks & Shares5000+
- US Stocks
- German Stocks
- UK Stocks
- European
- ETF Stocks
- IPO
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 Zero Commission
- NASDAQ Zero Commission
- DAX Zero Commission
- Facebook Zero Commission
- Alphabet Zero Commission
- Tesla Zero Commission
- Apple Zero Commission
- Microsoft Zero Commission
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
- Paypall
- Skrill
- Neteller
What we like
- Sign up today and get $5 free
- Fractals Available
- Paypal Available
Min Deposit
$0
Charge per Trade
$1 to $9 PCM
Visit Now
Investing in financial markets carries risk, you have the potential to lose your total investment.
Available Assets
- Total Number of Shares999
- US Stocks
- German Stocks
- UK Stocks
- European Stocks
- EFTs
- IPOs
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 $1 - $9 per month
- NASDAQ $1 - $9 per month
- DAX $1 - $9 per month
- Facebook $1 - $9 per month
- Alphabet $1 - $9 per month
- Telsa $1 - $9 per month
- Apple $1 - $9 per month
- Microsoft $1 - $9 per month
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
Share
Alejandro Arrieche
