Tech stocks have had a rough go the past few months.
Price drives narrative, so many investors are turning their backs on them.
But everyone should be a tech investor.
Tech has a huge impact on economic growth.
It gives businesses and people the ability to create more with less.
This boosts productivity and raises the standard of living for people.
Tech’s importance seems obvious.
But I think investors and experts are sleeping on tech and what it will unlock for the economy.
A New Tech Trend Is Taking Shape
Until the Industrial Revolution in the mid-1700s to mid-1800s, economists were blind to the effects of technology.
They thought growth came mainly from an increase in population.
In the late 1990s, many industry experts were confident the internet would fail.
Obviously, this was a cold take.
The internet created the digital economy, which now accounts for over $14 trillion in economic value.
Right now, we’re seeing another tech trend take shape.
Experts are calling it “digital transformation.”
And businesses around the world are rushing to take part.
The Pillars of Digital Transformation
IDC forecasts the trend to command $10 trillion in spending over the next five years.
The digital transformation has several pillars. These include:
Modernization of existing tech.
Optimization of existing operations.
Creation of innovative products and services.
As businesses transform, I expect many stocks will see huge gains.
Those that embrace tech will see a boost to their business, sure.
But I’m most excited about the companies assisting others with the digital transformation.
They’ll be receiving the largest piece of the $10 trillion digital transformation pie.
You Need to Be a Tech Investor
I know this trend will be HUGE and span multiple decades.
It’s not as sexy as robots or self-driving cars. But it’s a huge priority for businesses.
Just look at how often public companies are discussing it in conferences.
Over the past two years, “digital transformation” has been mentioned 13,000 times.
Compare this to “autonomous” and “self-driving,” which were only mentioned 7,400 times.
As I said before, you need to be a tech investor to profit from digital transformation.
And luckily, the recent weakness in tech stocks has created a huge buying opportunity.
Ian King and I want our subscribers to be in NOW.
Last week we recommended two tech stocks that are helping companies with their digital transformation.
Research Analyst, Strategic Fortunes
From open till noon Eastern time.
Arrival (Nasdaq: ARVL) focuses on the design, assembly and distribution of commercial electric vans, buses and cars worldwide. It is up 30% this morning as investors saw a buying opportunity with the stock hitting a new 52-week low late last week.
Bassett Furniture Industries Inc. (Nasdaq: BSET) manufactures and markets home furnishings internationally. The stock is up 29% after the company reported results for Q4 and announced the sale of its furniture delivery business.
Provention Bio Inc. (Nasdaq: PRVB) develops and commercializes therapeutics and solutions to intercept and prevent immune-mediated diseases. It is up 29%, continuing on its momentum from Friday when the company announced plans to resubmit its type-1 diabetes treatment candidate for an FDA Biologics License Application.
Embark Technology Inc. (Nasdaq: EMBK) develops self-driving software solutions for the trucking industry. The stock is up 25% as it recovers from a multiweek sell-off along with other driving technology stocks.
Romeo Power Inc. (NYSE: RMO) designs and manufactures lithium-ion battery modules and packs for commercial electric vehicle. It is up 22% this morning and is yet another driving technology and electric vehicle stock that is in recovery mode.
Akoustis Technologies Inc. (Nasdaq: AKTS) develops and manufactures radio frequency filter products for the mobile wireless device industry. It is up 20% after the company reported that it has received five Wi-Fi design orders, which are expected to ship later this year.
Dada Nexus Ltd. (Nasdaq: DADA) operates an online platform for on-demand retail and delivery in China. The stock is up 19% along with a few other Chinese stocks in anticipation of further policy easing by the authorities given the recent weak economic data from the country.
TDCX Inc. (NYSE: TDCX) provides outsource contact center services for technology and other blue-chip companies. It is up 19% after Credit Suisse initiated coverage on the stock with an outperform rating following its announcement that it was entering the South Korean market.
Ginkgo Bioworks Holdings Inc. (NYSE: DNA) develops platforms to program cells to enable biological production of things such as therapeutics, food ingredients and petrochemicals. The stock is up 18%, continuing on its uptrend from Friday when Bank of America initiated coverage on the stock with a buy rating.
Matterport Inc. (Nasdaq: MTTR) is a spatial data company that focuses on digitizing and indexing the real-world spaces through the creation of their 3D digital twins. The stock is up 17% after the company announced the appointment of a new chief marketing officer.