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7 Tech Stocks Due For Great Short Compression


  • Each of these tech stocks to buy are approaching critical rebound levels.
  • Advanced micro-systems (AMD) stock is hot and cheap.
  • Nvidia (NVDA) is the new trendsetter.
  • Intel (INTC) is a cheap tech giant.
  • Microsoft (MSFT) represents the most improved old dog on the street.
  • You’re here (TSLA) continues to dominate the electric vehicle space.
  • Shopify (STORE) reinvents the world created by Amazon.
  • Amazon (AMZN) is a titan that continues to make great strides.

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Wall Street is a total mess this week, but the list of tech stocks to buy is still quite long. Stocks and other asset classes are in free fall. Same Bitcoin (BTC-USD) is now under $30,000. The tech stocks I identified today are all likely to see a strong rally soon enough.

It must be recognized that there are short-term risks, as yesterday the indices fell by 2.5%. Another proof of chaos is that the CBOE Volatility Index (INDEXCBOE:VIX) also closed in red. Given that bond yields also fell, we shouldn’t blame the report on inflation. Either way, most companies still show strong P&Ls. Same Reached (NASDAQ:UPST) collapsed despite sales growth of 150%. Risk appetite is very particular these days, and investors prefer less frothy tickers.

I’ve limited my list of tech stocks to include only exceptional companies. The unease in the stock market will subside after some time as the Federal Reserve’s hawkish rhetoric becomes obsolete. Meanwhile, the indices still have room to drop 12% to 20% from here. Therefore, tech stocks may not have bottomed out. It would therefore be wise to limit the deployment of new professions.

In the long run, the overwhelming bullish thesis is that the world is absolutely going digital. This is a one-way trend and we will need smart machines to make it happen. Overall, the demand for these products and services will persist for a decade.

Teleprinter Company Current price
AMD Advanced micro-systems $93.73
NVDA Nvidia $175.30
INTC Intel $43.56
MSFT Microsoft $260.56
TSLA You’re here $767.74
STORE Shopify $391.65
AMZN Amazon $2,222.22

Advanced Micro Devices (AMD)

I’ll start with a successful business that provides brains to operations. The world needs computers and Advanced micro-systems (NASDAQ:AMD) provides high processing power to make this happen. The fundamentals of the business are great, and it’s relatively cheap. His reputation has grown to the point that he has loyal fans. For my part, I recently purchased two computers with AMD internals.

The stock chart is approaching a support zone above $75 per share. There are probably bulls hiding there waiting to buy it. This has served as a base since the summer of 2020. However, investors should watch out for small technical issues to fill in some gaps below. Below these levels, AMD would be an excellent value proposition. The rally is expected to be violent, as Wall Street usually overdoes things. Bears can’t help but extend their welcome into winning trades.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) stock suffers a similar fate to AMD. It is its main rival which also provides excellent brains to our highly technical world. Nvidia has earned a reputation as a leading innovator in the field. Their financial results support these claims with absolute certainty. Nvidia’s management has more than quintupled its revenue since 2015. It even has a net income of $10 billion. Last year, they generated $9 billion in cash from their operations.

However, the title is not cheap, especially compared to its competitors. With a price-to-sales ratio of 17x, it could lose some foam to line that up more. Nonetheless, the title also falls into a sharp hinge zone. Support extends from the current price up to $138 per share. These levels have also been in contention since 2020, so they will provide support.

This stock is also in a bearish pattern that may still have a few dollars to spend. It is enough for him that the indices stabilize and he will too. Nvidia’s excellence is beyond question, and buyers will be coming back for more. The rally should be more violent than the sellers still think.

Intel (INTC)

While Nvidia and AMD grab the headlines, Intel is still the behemoth they both chase. Most investors don’t realize that Intel (NASDAQ:INTC) is twice as large as the other two. It’s still a beast, but not as exciting. Eventually, they recapture the imagination of investors and regain the respect they lost. Basically, it’s the cheapest of them all by a mile.

Chart-wise, INTC stock has enjoyed strong support at around $40 per share since 2018. Investors holding the stock have strong hands. They are not likely to capitulate easily. There is a technical risk, just like the other two, but it is likely to find support soon. The rally in this one might not be as fierce as the other two. This makes it a bit less risky overall.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) is an old dog who made it through the internet bubble. MSFT stock has lost 25% of its value since peaking last fall. Since it lost support since early March, it might even break a bit lower from here. But if the indices stabilize, Microsoft has technical reasons to rebound 15% and quickly.

This company has proven to be trustworthy. Microsoft has successfully moved a giant ship and steered it straight into winning trends. Under the leadership of Satya Nadella, the company has also made things easy. Wall Street rewarded MSFT for its efforts, as the stock is still miles from its pandemic low. While it’s not cheap, there’s no obvious bloat either. Revenue for the past 12 months has doubled compared to five years ago. With a net income of $70 billion, investors may face some challenges along the way. If I was long on the stock, I can confidently wait for those jitters.

Tesla (TSLA)

Although you may not see the electric vehicle manufacturer You’re here (NASDAQ:TSLA) as a tech stock, it’s full of tech, so I’m keeping it on this list. Currently its finances are beyond reproach and twice as efficient with its gross margin compared to Ford (NYSE:F) or General Motors (NYSE:GM).

Tesla stock is a bigger beast than the company itself. Over time, he killed many shorts. Not yesterday though, as it dropped 8% and for no particular reason. However, it still does relatively better than the indices. At least he hasn’t lost his February 24 support yet. But there is a technical risk here. If TSLA falls below $697 per share, it could accelerate lower.

I’m confident that once it stabilizes, Tesla will kill more bears. The rally will be fierce, so investors should avoid shorting it. Smart money would look for entries near the support points below. It too will need the help of all the markets.

Shopify (SHOP)

The line between tech companies and retail companies is paper thin. Therefore, I include Shopify (NYSE:STORE) in my list of tech stocks to buy. If there’s one stock that can rally quickly, it’s the SHOP stock. Unfortunately, it does it both ways. For example, the company has just lost 80% of its value since last November. Fortunately, he had just recovered more than 200% from the pandemic.

SHOP stock took a long round trip to $1,760 and closed below $320 on Wednesday. Investors drove it straight into the base of the pandemic. Once it comes back into fashion, buyers will make it once again. It is difficult to quantify the magnitude of the rebound, just as it is difficult to determine the absolute bottom. Therefore, it is best to take small bites.

The management has multiplied its income by seven in five years. And they did it without creating excessive valuation. Its modest price-to-sale ratio suggests that owners now have realistic expectations. Moderation is an extremely important virtue when it comes to Shopify stock.

Amazon (AMZN)

If we include SHOP, then Amazon (NASDAQ:AMZN) also belongs to this list. After all, Amazon basically owns the cloud, so most tech-related things go through their servers.

He’s also had a bad time on Wall Street lately. Amazon’s stock is 44% below all-time highs. It is also approaching a very strong consolidation zone. Unfortunately, it’s also wide, so the floor is more of a support strip. Going all-in to catch that falling machete would be unwise.

Its fundamentals are impeccable and its financial parameters are solid. Amazon generates $470 billion in revenue and $20 billion in net profit. He has the wherewithal to do whatever he wants to further develop the business. The team is rarely short of imagination and they deserved the benefit of the doubt. It’s a tech stock that I could own all my life.

At the date of publication, Nicolas Chahine had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Nicolas Chahine is the Managing Director of SellSpreads.com.

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