3 Cutting-Edge Tech Stocks to Consider Buying Now

It can really pay off to understand how certain sectors of the market are being affected by current economic conditions. For example, technology stocks have been on a huge run due to lower perceived risks on how COVID-19 will affect the sector. Since most of these companies have business models that are actually benefitting from shifts in behavior like working from home, rising e-commerce demand, and remote communications, technology stocks have been rallying to new highs on a regular basis.

There are plenty of technology stocks that one could argue are overvalued and overextended, but that doesn’t mean you shouldn’t be looking at opening new positions in the sector. That’s why we are going to take a look at 3 cutting-edge tech stocks to consider buying this June.

Advanced Micro Devices Inc. NASDAQ: AMD

If you are looking for a stock that has room to run in the semiconductor space, look no further than Advanced Micro Devices Inc. Although the company has been around for over 50 years, it seems that the chipmaker still has some tricks up its sleeves as it continues to disrupt the computing marketplace. The company grew revenue by $1.79 billion dollars year-over-year as of their Q1 earnings report and is steadily increasing its market share with innovative new products. You also have to be impressed with how the company improved gross margins by 46% year-over-year.

One of the big reasons for this company’s continued success has to do with the regularly increasing demand for computer graphics processors. Both Microsoft and Sony will be launching their new video game systems shortly that are both powered by none other than Advanced Micro Devices chips. The profit potential from gaming chips alone is enough to catapult this stock higher, but don’t forget about AMD’s commercial high-performance computing business as well.

DocuSign NASDAQ: DOCU

Remember the days when people had to physically sign documents and fax them back and forth? It was an inefficient process that took away time and money from businesses. These days, people can use cutting-edge cloud-based software solutions like DocuSign to electronically sign their important documents. The rapid shift to remote work has been accelerated by the pandemic and is a very positive sign for this company. As more and more businesses realize how effective DocuSign’s services are, the stock has room to continue up.

DocuSign recently reported Q1 revenue figures of $297 million, which was up 39% from a year ago. The company’s management actually raised its forward guidance for the year, which is a true sign of strength in today’s uncertain economy. Although the stock is up massively year-to-date, adding DocuSign to your portfolio could still pay off in a big way going forward.

Slack Technologies Inc NYSE: WORK

Another company that is changing the way that companies do business is Slack Communications. Their platform offers a unique way to help businesses operate remotely via their “collaboration hub” that brings people, information, and tools together. Slack announced Q1 earnings this week and reported record revenue of $201.7 million, which was a 50% year-over-year increase. An increase in paid customers was also positive news for Slack, thanks to 28% year-over-year growth with over 122,000 new paying users.

There are quite a few things that Slack has going in its favor. When it comes to software companies, recurring revenue is what investors like to see, and Slack has been growing that figure rapidly. Slack also announced a new multi-year partnership with Amazon Web Services which means all Amazon employees will be using the Slack Platform. This is the type of news that you love to see. The stock price got beaten up substantially after this week’s earnings report mostly due to the company not providing forward guidance. After the dust settles, you could find a nice entry point in June for Slack if you are a believer in the remote work revolution.

Massive Potential

There’s a recurring theme with these three cutting-edge tech businesses – they all have massive potential to continue their growth. With large shifts in how companies are doing business and the constant need for new and innovative technology, it’s no wonder that each of these businesses is experiencing large growth. Some might argue that these stocks might be a little too hot thanks to the fact that they have already run up substantially this year, but the truth is that you have to pay a premium for potential.