Many big tech companies...
...have seen their stock prices soar...
...since the beginning of the pandemic...
...as large sections of society...
...worked, shocked and even socialised from home
Apple hit the 3 trillion dollar mark
Profit more than tripling...
...revenue soaring for $108 billion
Who gets the Oscar?
Microsoft!
Today, stocks for the big five tech companies...
...account for more than 20% of the value of the S&P 500...
...an index of the largest 500 companies in the US
A number of analysts believe...
...that the tech heavyweights are overvalued...
...and that their stock prices could face a drastic correction...
...in the event of any possible market crash
However there are a number of tech and biotech stocks...
...that could weather any storm and thrive
These are companies...
...that are providing solutions for the global economy...
...in this pandemic age
Here’s our top five tech and biotech stocks...
...and also a couple that may underperform this year
In at number five...
...it's Marvell Technology
And no, it's got nothing to do...
...with the series of superhero films
Shares of Marvell surging
the American tech company...
...produces semiconductors
Those tiny chips...
...that make our smartphones, computers, cars...
...and all sorts of other electrical devices, operate
this vital piece of wafer thin tech...
is central to what's being called...
...the fourth industrial revolution
The semiconductor industry has had an eventful two years
When the pandemic began...
...many production lines were halted...
...causing a global chip shortage
Which in turn led to global supply issues...
...for all types of goods from toys to cars
But Marvel has been able to shine...
...where other semiconductor companies have not...
...navigating, supply chain bottlenecks and maintaing growth
It's CEO has been keen to emphasize the data centre...
...and cloud solutions side of the business
Over 40% of our revenues is in data centre
In 2021, its stock price increased by almost 100%...
...and the company's net revenue surged...
...year-on-year to $1.2 billion
It's gained an impressive market cap to boot
But there could be a potential fly in the ointment here
Taiwan
The island remains a major source of tension...
...between China and the US
Beijing regards Taiwan as its territory...
...not as a separate sovereign state
65% of the world's semiconductors are produced in Taiwan...
...whereas around 5% of the global total are made in China
Marvell outsources a substantial amount...
...of it's manufacturing operation...
...to factories on the island
So any move by China to invade Taiwan...
...could have serious consequences for the company
...and other US firms in the sector
China has ambitions...
...to beef up its own domestic semiconductor industry
One that doesn't just produce American designed chips...
...but rather is driven by original Chinese intellectual property
Despite the frosty geopolitics at play...
...we think Marvel's strong performance during the pandemic...
...and its application of data centric chips...
...in car manufacturing...
...make it potentially a strong stock for the year ahead
Let's see who is here
Hello
Oh hi
One tech stock who could face a volatile year is Zoom
It was the big surprise tech product of 2020...
...becoming the go to app for work meetings...
...in the early days of the pandemic
But as lockdowns eased...
...and more people return to work at offices at various stages...
...last year, its stock price dropped
As society settle into a more hybrid model of working...
...It will be interesting to see...
...how the so-called "stay at home" stocks like Zoom...
...perform in 2022
Health care is also being disrupted by another technology...
...wearables
Dexcom is one of the up and coming players...
...in the world of health tech wearables...
...specialising in monitoring systems for diabetics...
...the company has a market cap...
...in excess of $47 billion
It produces a small wearable sensor and watch...
...which transmits a users...
...glucose numbers to a smart device every five minutes...
...enabling them to monitor their blood sugar levels
One in five Americans now own...
...a smartwatch or fitness tracker
Users aren't just tracking their fitness goals...
...but vital signs such as...
...heart rate, sleeping patterns and blood pressure too
It's estimated that this market...
...will be worth more than $260 billion by 2026
Dexcom stock price underwent sizable growth in 2021...
...though since hitting highs in November...
...its price has decreased by more than 20%
Dexcom isn't the only company in this space...
...but its growth suggests it's one to watch out for in 2022...
...as wearables continue...
...to revolutionise the world of healthcare
Of course, not all health focused...
...tech stocks continue to shine
Peloton's stock price...
The company that produces home exercise equipment...
...soured during 2020...
...only for the company to rack up huge losses in 2021...
...seeing its stock price nosedive
As restrictions have eased across the world...
...exercising at home, may not be as popular...
...as it was back in 2020...
...when we had those strict earlier lockdowns
It's called Regeneron
I think this was the key
Regeneron became front page news...
...when President Trump...
...took his monoclonal covid antibody treatment...
...called REGEN-COV in 2020
Let's talk about monoclonal antibodies
This technology artificially creates...
...antibodies designed to mimic a person's...
...natural response to viral infections
Its stock price increased by more than a third...
...over the course of 2021
Regeneron's in-house technologies...
...known as the Velocisuite...
...develop antibody drugs from immunised mice
Mice make possible the study
Mice, just like humans...
...produce and select antibodies...
...to defend themselves against pathogens
Regeneron's series of technologies...
...manipulates mouse DNA...
...using bacterial artificial chromosomes...
...which replace mice antibody genes with human ones
This creates
This creates a faster approach to modifying the mouse...
...genome and speeds up the drug research process
CNN has cited a median estimate...
...from 26 investment analysts...
...who give the stock a "buy" rating for the year ahead
But what's the downside?
Well, Regeneron's stock price...
...dropped towards the end of 2021...
...and this volatility was being driven by...
...its COVID 19 antibody cocktail
This therapy may not be as effective...
...against the Omicron variant...
...and this is what's made investors cautious
Nvidia, is the world's largest maker of graphics cards
That's the essential technology needed for your computer...
...to generate high quality images at speed
Its tech is central to many people's lives today...
...from cloud computing and gaming...
...to the hardware that powers EV models
The California headquartered company...
...produces cars that are powerful enough for bitcoin mining...
...and big brand carmakers like BMW...
...are using Nvidia's cutting edge A.I product...
...Omniverse Avatar...
...to design and test how its factories of the future will operate
Can you tell how far I have to bend down there?
I'll get you a taller one
Yeah it's perfect
The company has big plans for growth too...
...for the past year, it's been trying to purchase...
...Chinese chip-maker Arm for $40 billion
In the past few years, Nvidia's stock price...
...remained mostly
...remained mostly around the $50 mark...
...but it has rocketed since the start of the pandemic
In the last year alone...
...company earnings are up more than 110%...
...exceeding median earnings in the industry
This remarkable performance, driven in part...
...by high prices for its in-demand chips...
...during a global shortage...
...has pushed its market capitalisation...
...up to almost $700 billion
So where's the catch?
Well, if there is one, it's the company's decision...
...to limit the hash rate...
...that's the mining speed used by cryptocurrency miners...
...in its newest laptop...
...It could make this product...
...less attractive to those customers
But overall, we see Nvidia as a stable tech stock...
...for the year ahead
Our number one stock to watch is Moderna...
...which has emerged during the pandemic...
...as a standout biotech company
Moderna’s use of pioneering mRNA technology...
...played a leading role...
...in developing the COVID 19 vaccine
The speed of the vaccine rollout has been unprecedented...
...in the history of global health initiatives...
...with countries around the world...
...embracing this new technology
Moderna’s stock price performed better...
...over the past twelve months...
...than that of the three other big Western companies...
...producing COVID 19 vaccines
Surging 140% over the course of 2021
However, past performance is no guarantee of future success
The broadcaster CNN has cited analysts...
...who are estimating a median 30%...
...increase for the stock price...
...over the next twelve months
On the downside, Moderna has forecast...
...that it will sell a reduced quantity of its vaccine this year...
...down from $20 billion in 2021...
...to somewhere between $15 to $18 billion in 2022
This reduction in sales may affect its stock price
The performance of these stocks reflects...
...how our use of technology has accelerated...
...during the pandemic
As we emerge from the health crisis...
...the stock market undoubtedly will continue to identify...
...innovative companies that provide products...
...for our changing global economy
You can read more about these stocks...
...by visiting Capital.com on the link below
You might also like our recent explainer on the Metaverse...
...which is featured in the box
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