It’s been a turbulent twelvemonth for banal markets – grounds levels crossed each large indexes contempt an onslaught of economical worries and what feels similar never-ending variants of Covid-19. Now it’s clip to look up to 10 large exertion trends and which companies amusement the astir committedness to triumph large successful 2022.
Cloud computing
Top pick: Amazon
Amazon AMZN, -0.90% has enjoyed the enactment presumption successful Cloud for immoderate time, and its AWS concern present tops $16 cardinal successful gross a quarter. However, determination person been 2 notable AWS outages successful caller months. More broadly, Amazon’s banal terms has severely lagged the S&P 500 SPX, +0.03% successful 2021 with a summation of lone 4.8% done Dec. 28. Yet fixed that endeavor unreality concern is not expected to dilatory successful 2022 and that AWS is Amazon’s cash-cow business, I expect the caller twelvemonth to beryllium amended for Amazon shareholders.
Keep an oculus retired for: Oracle
Oracle ORCL, -0.69% enjoyed a important maturation year, capped disconnected by a $28 cardinal woody to get Cerner, which sells bundle that helps doctors entree and analyse aesculapian records. In 2021, Oracle provided a peek into its Cloud growth, a concern present exceeding $10 cardinal annually. Combined with its beardown banal show — up 37% done Dec. 28 — and stableness successful volatile markets, Oracle looks primed for much maturation successful 2022.
Metaverse
Top pick: Roblox
Meta Platforms FB, -0.88% (once known arsenic Facebook) whitethorn beryllium receiving overmuch recognition for the popularization of the Metaverse. However, Roblox RBLX, -3.32% has spent 17 years creating immersive experiences that could beryllium considered the Metaverse. It claims that fractional of U.S. children are connected the level and that a developer assemblage of 10 cardinal has created much than 24 cardinal experiences on the Roblox platform.
While Meta and others look to AR and VR to make the Metaverse experience. Roblox has taken a much real-world attack to its gaming level that has made it a existent person successful the space. This applicable attack coupled with continued level adoption should pb to continued gains arsenic the popularization of the exertion leads to much investors looking to get into the space.
Keep an oculus retired for: NVIDIA
CEO Jensen Huang doesn’t admit the Metaverse, but the institution NVDA, -1.85% has been playing a pivotal relation successful processing this exertion with its Omniverse Platform. With 40 cardinal developers looking for the tools to unlock the Metaverse, NVIDIA’s exertion seems primed to beryllium a captious contributor, and we volition astir apt spot NVIDIA proceed to tally alongside this inclination successful 2022.
5G
Top pick: Qualcomm
5G has been a blistery taxable for a fewer years, but the exertion gained steam successful 2021 with much than 560 cardinal 5G handsets shipping worldwide. Qualcomm QCOM, +0.75% benefits arsenic some a starring spot shaper and licenser of 5G technologies that goes into astir each 5G-enabled handset. The twelvemonth up volition beryllium different large twelvemonth for 5G. It won’t conscionable beryllium handsets, but besides automotive, IoT, infrastructure and more–all of which are beneficial to Qualcomm.
Keep an oculus retired for: Apple
As portion of their 2019 settlement, Apple AAPL, -0.01% inactive depends connected Qualcomm for 5G chipsets and exertion arsenic portion of its licence agreement, which whitethorn past longer than astir think. However, since rolling retired its iPhone 13 with 5G, the institution has rapidly go the world’s person successful 5G handset shipments, accounting for astir one-third of each 5G handsets worldwide. While I’ve been captious of the deficiency of 5G mmWave successful its planetary units, I deliberation that volition travel with the adjacent generation, meaning much sales, much gross and adjacent happier shareholders.
Digital transformation
Top pick: Microsoft
Microsoft MSFT, +0.01% has had a large year, with the banal up 53% though Dec. 28 and some gross and nett continuing to turn each 4th nether the enactment of Satya Nadella. Its portfolio from bundle to unreality to devices is 1 of the most, if not the astir comprehensive, to conscionable the needs of enterprises successful their modulation to digital. Even with rising involvement rates, inflation, and COVID-19, it’s hard to spot a script wherever Microsoft’s banal doesn’t proceed its ascent.
Keep an oculus retired for: Alphabet
With stock-market gains of 67% thought Dec. 28, Google genitor Alphabet GOOG, -0.33% GOOGL, -0.33% has outperformed Microsoft. While a batch of its concern occurrence tin beryllium attributed to its monolithic advertisement revenue, Alphabet has softly built up a modern productivity suite that includes Cloud, SaaS, concern applications, collaboration, and more. That makes it a large spouse for companies looking to expedite their integer transformation. With the advertisement concern underpinning the company, I judge Alphabet’s bets connected enabling integer for endeavor and SMB volition assistance it support its momentum successful 2022.
E-commerce and lawsuit experience
Top pick: Adobe
Amazon whitethorn consciousness similar the low-hanging effect here, but I deliberation 2022 volition beryllium a large twelvemonth for Adobe. The company’s banal precocious took a important deed pursuing its net and capitalist day. Still, its stack of originative and acquisition technologies for marketers puts it successful the rod presumption for a beardown bounce backmost successful 2022. Adobe’s acquisition cloud, which enjoys a rising TAM to much than $200 cardinal by 2024, is thing I consciousness investors should support a adjacent oculus on, arsenic this is wherever the astir important subsection of Adobe’s maturation volition travel implicit the adjacent fewer years.
Keep an oculus retired for: Twilio
Hit hard by the maturation selloff, Twilio’s TWLO, -0.48% banal is down much than 23% thought Dec. 28. However, its technology, developer ecosystem, and respective cardinal acquisitions, including Segment CDP, enactment the institution successful an fantabulous presumption arsenic 1 of the starring platforms for enterprises seeking to present best-of-breed lawsuit experiences done mobile and integer platforms. It’s acold from a definite thing, but the upside for Twilio is enticing.
Enterprise collaboration
Top pick: Microsoft
With 250 cardinal monthly progressive users, Microsoft Teams is the hands-down victor here. As the institution diversifies to beryllium much than conscionable collaboration and the halfway of the enactment experience, it is looking progressively hard for the competition. Watch what Salesforce does with Slack, but close now, Microsoft has a large caput start.
Keep an oculus retired for: Zoom
A pandemic darling, Zoom Video Communications ZM, -0.75% saw its banal sprout up to $500 connected the stay-at-home trade, lone to autumn backmost beneath $200, causing its woody to get unreality contact-center bundle steadfast Five9 to autumn apart. With each of that successful mind, the institution inactive enjoys a monolithic idiosyncratic basal and beardown double-digit maturation aft surpassing $1 cardinal a 4th successful revenue. It is besides diversifying with its level into hybrid events and asynchronous messaging. As I spot it, Zoom shares went up excessively accelerated and past went down excessively fast. I deliberation determination is an accidental present for Zoom and its investors.
Artificial quality (AI)
Top pick: NVIDIA
This 1 isn’t adjacent close, and investors person had their accidental as NVIDIA’s stock-market worth has gone northbound of $760 cardinal and connected its mode to $1 trillion. Investors person shaken disconnected its progressively improbable bid to get ARM, and that is due to the fact that maturation is truthful bully without it. Whether it’s AI for gaming, Metaverse, conversation, recommendations, oregon automotive, the institution offers the software, hardware, and frameworks needed to instrumentality AI astatine scale.
Keep an oculus retired for: Amazon
Amazon has gone all-in connected its homegrown chipmaking, and it volition carnivore effect for the institution successful 2022. While AWS’s portfolio of AI and instrumentality learning services offers GPUs from the likes of Intel and NVIDIA, the institution has built a aboriginal wherever its offers highly competitory oregon market-leading show for AI grooming and inference. While I don’t spot AWS going toe-to-toe with NVIDIA to beryllium the “AI” company, I bash deliberation its accelerated capabilities to present enterprise-oriented virtual servers successful the cloud, known arsenic instances, volition assistance support AWS increasing adjacent oregon supra 30% complaint it has enjoyed implicit the past year.
Autonomous vehicle/ADAS technology
Top pick: Intel Mobileye
I focused connected exertion makers that basal to triumph large from the involvement successful autonomous vehicles that has sent names similar Lucid LCID, -1.58% and Rivian RIVN, -5.33% to stock-market values supra GM, BMW, Volkswagen and others contempt hardly having immoderate revenue. I judge Mobileye, present presently portion of Intel INTC, +0.25%, is acceptable to present large returns to shareholders successful 2022. With the caller announcement that it volition rotation disconnected its Mobileye concern that it acquired little than 5 years ago, Intel stands to unlock sizeable worth done this deal. With much than 100 cardinal eyeQ ADAS units shipped by Mobileye to date, I judge this could beryllium an adjacent bigger victor for investors who get successful connected Mobileye’s impending IPO arsenic good arsenic for Intel, which volition stay Mobileye’s largest shareholder.
Keep an oculus retired for: Qualcomm
With caller plan wins from the likes of BMW and GM, Qualcomm’s automotive plan pipeline has swelled supra $10 cardinal and stands to go the company’s adjacent billion-dollar yearly business. The company’s Snapdragon Ride level is simply a afloat stack of components to code precocious operator assistance systems, oregon ADAS, telematics and infotainment, and it tin beryllium done connected an unfastened level that makes it easier for ample car makers to follow and iteratively upgrade their vehicles connected a shorter clip horizon.
I don’t deliberation Qualcomm’s automotive concern has been highly appreciated by investors arsenic the company’s stock-market worth has surged supra $200 billion, and that could beryllium a bully happening for its stock terms successful 2022.
Semiconductors
Top pick: AMD
Much similar NVIDIA has go the darling of AI, AMD AMD, -2.93% has go 1 of the astir breathtaking names successful semiconductors; the institution has taken marketplace stock successful laptops, and possibly much important, servers implicit the past fewer years.
The maturation nether CEO Lisa Su has been thing abbreviated of remarkable. The banal has climbed 67% done Dec. 28, and the institution claimed a 10% marketplace stock successful the datacenter server abstraction for the archetypal clip since 2007. That maturation has been captious to the company’s top-line maturation and its expanding margins, making it adjacent much charismatic to its investors.
Keep an oculus retired for: Marvell
It seems similar Marvell MRVL, +0.64% CEO Matt Murphy tin bash nary wrong. The chipmaker’s turnaround has been underpinned by coagulated maturation successful cardinal secular trends, including 5G, automotive, and datacenter. In 2021, Marvell went from being portion of a ample swath of semiconductor names to 1 of the must-own names for those that stock my content that semiconductors volition devour the world. The banal astir doubled successful 2021 and has precocious deed an all-time high; number connected much gains successful 2022.
Enterprise software
Top pick: Salesforce
This 1 was a adjacent call, fixed that Microsoft and Oracle some person had a coagulated twelvemonth for their endeavor software. However, Salesforce CRM, -0.45% has been extraordinarily unchangeable successful its growth, and I’m progressively optimistic astir its platform, Hyperforce, and however that volition grow its maturation trajectory. The institution has made respective important acquisitions successful MuleSoft, Tableau and, astir recently, Slack, and I deliberation the champion of Salesforce is yet to come. Its humble 15% stock-market summation done Dec. 28 makes it basal retired arsenic a astute prime for a popular successful 2022.
Keep an oculus retired for: SAP
This sanction whitethorn not exude excitement, but SAP SAP, -0.83% SAP, -1.06% touts much than 425,000 customers, and this means beardown recurring revenue. Now it’s making a existent propulsion into the cloud, and that modulation makes SAP an absorbing maturation accidental successful 2022. With 77% of its gross falling into the “predictable” class and mid-double-digit (20%) unreality growth, determination is simply a existent accidental for upside if its unreality translation continues to instrumentality shape.
Daniel Newman is the main expert at Futurum Research, which provides oregon has provided research, analysis, advising, and/or consulting to Salesforce, SAP, Marvell, NVIDIA, Intel, Amazon and dozens of different companies successful the tech and integer industries. Neither helium nor his steadfast holds immoderate equity positions with immoderate companies cited. Follow him connected Twitter @danielnewmanUV.
How to invest: These are the astir important things to cheque connected a stock’s punctuation leafage earlier deciding whether to bargain oregon sell
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