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Investing in a New Wave of “4IR” Technologies
BUZ INVESTORS Technology stocks have delivered stupendous returns in the first half of the year. Analysts are now making some bold tech stock predictions for 2017. But in just seven months, we’ll bid adieu to 2017. Opportunities like these rarely knock on the door twice in one year. I’ll be honest, making a fortune out of the best technology stocks in such a short time frame will be a tough feat. So don’t think like a short-sighted trader. I say, think like an investor—think long term. Think 2025!
Why 2025? Because that’s the critical year when the tipping point for the Fourth Industrial Revolution is predicted to occur. If this is news to you, then you’d better stay with me as I divulge more information on it.
You see, every year for the World Economic Forum, political and business leaders meet at Davos to discuss the future of their respective countries and businesses. But no one, I repeat, no one sees the ins and outs of these meetings as closely as Klaus Schwab—the man who’s been running the show for four decades now.
- Firstly, it is believed that the fourth industrial revolution will push vision-based user interfaces into the mainstream. To put it simply, these include key technological features like facial and gesture recognition and head and eye tracking in daily use devices.
I know that we’re already familiar with this idea through our smartphones and video gaming consoles. But look beyond them to devices like home monitoring systems, electrical appliances, and cars. If you’re also thinking Internet of Things (IoT), you’re on the right track. My first technology stock pick serves these technologies. You’ll soon find out how.
- Second is the phenomenon of cloud computing. The 4IR will increase our digital presence manifold. This presence will not be tied down to a single device or platform. It’s already evident that we connect to our digital data through various devices today, including smartphones, tablets, desktops, smart watches, smart TVs, and the like.
The fastest way to interconnect all these platforms is through the cloud. Cloud storage, in particular, is viewed as becoming available to virtually every internet user by 2025. The key is to look out for the best cloud computing companies in both consumer and enterprise segments. My second pick serves the world of cloud in a very peculiar way. Stay tuned for more on it.
- Finally, as the phrase itself hints, the fourth industrial revolution will drive the rise of the machines. Robots are expected to take over nearly all of our industries, including services. This is where artificial intelligence (AI) will play its biggest role. My final technology stock pick attends to this segment.
1. STMicroelectronics (STM) Stock
What better place to look for the best technology stocks than the home ground of 4IR—that is, Switzerland?
For now, forget the companies that manufacture all the hi-tech gadgets and think about one company that lends these gadgets the brain to function. STMicroelectronics NV (ADR) (NYSE:(STM) is a global manufacturer and vendor of semiconductors. Basically, it makes the tiny chips that go into tech gadgets and bring them to life. (A bit of trivia for you: The company is famously called ST.)
As for STM stock, the price chart below is a testament to its performance. Initiatives in 4IR technologies have brought it back from the dead, with STM stock more than tripling in just under a year.
Now may be a good time to consider STM stock before you miss out on further gains.
2. Akamai Technologies (AKAM) Stock
Next up is my pick in the cloud space.
I understand that buying cloud computing stocks presents a great dilemma to traditional investors. Oddly enough, many of these are unprofitable, yet their stock prices are reaching for the stars. It doesn’t make sense, right? Well, it will if you look at the prospects of the cloud computing industry.
Now, all cloud computing stocks can’t be put together in one basket. In case you’re unaware, there are essentially three kinds of cloud computing companies out there: companies that offer software as a service (SaaS), those that offer platform as a service (PaaS), and those that offer infrastructure as a service (IaaS).
3. ABB Ltd (ABB) Stock
Barring the technology heavyweights, most tech companies have historically had short life spans. They were around for a few years, then they sunk into oblivion, by which I mean they either ran out of steam or got taken over.
My final pick today deserves a special credit for having survived economic storms for decades. In other words, it would be safe to assume that this trend can continue in the years to come.
ABB Ltd (ADR) (NYSE:(ABB) is one company that has its origin dating back to the 19th century. Formally formed through a merger of two old Swiss companies, the resulting ABB group has been in business for three decades now and is one of the biggest industrial conglomerates in the world.
All these initiatives in its Next Level Strategy have breathed a new life into ABB stock, which is starting to make quick strides northwards.
If you’re paying attention, now is the best time to consider ABB stock because it could likely turn out to be one of the best technology stocks in 2017.