Riding the Wave of Disruption: Tech Stocks that Will Grow in 2023

Top Analyst Ratings: June 21st, 2024

In 2022, the tech sector took a hit as investors distanced themselves from disruptive, high-growth stocks due to fears of a possible recession. However, as history has shown, this can be a costly mistake for investors.

The tech industry is constantly evolving and presents numerous opportunities for growth. As we look toward 2023, it’s important to consider investing in companies that have the potential to thrive in the coming year.

Two of these companies are Microsoft Corporation (MSFT:NSD) and Texas Instruments, Inc. (TXN:NSD).

 

Microsoft Corporation (MSFT:NSD):

Microsoft is a well-known company for its personal computing segment, but the cloud business has become the crown jewel of the company in recent years.

In the September quarter of 2022, the Intelligent Cloud segment reported $20.32 billion in revenue, accounting for over 40% of the company’s revenue.

Microsoft is a leading player in the global cloud computing market, alongside companies such as Amazon.com (AMZN:NSD) and Alphabet Inc. (GOOGL:NSD).

The company also boasts healthy operating margins of over 44% from its cloud business, making it a profitable and viable investment opportunity.

One of Microsoft’s undervalued assets is LinkedIn, a platform that the company has made steady progress in monetizing over the last few years.

In the third quarter of 2022, LinkedIn reported 16% year-over-year revenue growth to $3.66 billion. The platform is becoming increasingly popular among recruiters and job candidates worldwide, and the company has introduced several value-added services and subscriptions to monetize its daily active user base of over 134.5 million.

As LinkedIn continues to establish itself as the go-to platform for B2B sales and headhunting, it’s likely to become a major growth driver for Microsoft in the coming years.

In addition to these growth avenues, Microsoft stock future growth can also be attributed to the expected expansion of its subscription business and the potential gains from its investment in OpenAI, the developer behind the popular ChatGPT bot.

 

Analyst Ratings:

Wells Fargo maintains the “Buy” rating and Microsoft stock price target of $300.

Wedbush Securities maintains the “Buy” rating and $290 stock price target.

JP Morgan Chase & Co. rates Microsoft stock as a “Buy” with a $275 Price target.

Analysts rate Microsoft stock with a consensus “Strong Buy” rating and average stock price target of $291.16 per share over the next 12 months.

 

Texas Instruments (TXN:NSD):

Texas Instruments (TXN:NSD) is another company that presents a great investment opportunity for 2023. The company is the undisputed leader in the global analog semiconductor market, holding a market share of around 20%.

Its size and scale make it extremely difficult for competitors to dethrone Texas Instruments. The company serves some of the largest companies worldwide and benefits from intangible assets such as high customer switching costs and customized chip designing capabilities.

These competitive advantages will help Texas Instruments earn economic profits for the foreseeable future, making it a strong investment choice.

 

Analyst Ratings:

Truist Financial maintains the “Hold” rating and upgraded the TXN stock price target to $177.

Barclays maintains the “Equal-Weight” rating and upgraded the stock price target to $165.

Analysts rate TSN stock with a consensus “Hold” rating and an average stock price target of $170.85 per share over the next 12 months.

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