Concerns over rising inflation and investors’ rotation to cyclical stocks to take advantage of the economic recovery have led many promising tech stocks to experience price plunges lately. However, we think this dip should be seen as an opportunity to invest in prominent tech players HP Inc. (NYSE:HPQ), TTEC Holdings (NASDAQ:TTEC), and Silicon Motions (SIMO) because they are uniquely positioned to generate substantial returns in the coming months. Let’s discuss.Tech stocks have been volatile amid uncertainty surrounding the outlook for inflation and the Fed’s plans regarding tapering its bond purchases. According to the Bureau of Labor Statistics, the Consumer Price Index increased 4.2% year-over-year in April 2021. Investors have punished the tech sector in recent weeks amid a broader shift to cyclical stocks to capitalize on the economic recovery.
Notably, CNBC’s Jim Cramer recently asserted that, "The economy’s not going to be wrecked by ruinous inflation. The stock market won’t crash because of government debt". Despite the fraught environment for tech stocks in general, investors are growing extremely bullish on a few growing companies in this sector.
Indeed, we think HP Inc. (HPQ), TTEC Holdings, Inc. (TTEC), and Silicon Motion (NASDAQ:SIMO) Technology Corporation (SIMO), which suffered a price dip lately, are solid bets now given their huge growth prospects.