Tech stocks stood out in 2021 with their solid performances and lent support to the broader market. As the new year gets underway, a top analyst is providing a better understanding of what’s ahead for the sector in 2022.
Here are Loup Funds Managing Partner Gene Munster’s 2022 predictions for several top tech stocks:
1. Apple, Facebook To Vie For Top Honors: Apple, Inc. (NASDAQ:AAPL) will likely be the top-performing FAANG stock in 2022, although it will face competition from Meta Platforms, Inc. (NASDAQ:FB), analyst Munster said. Investors are likely to view these two companies are the safest choices to invest in the metaverse, he added.
2. Apple Will Finally Unveil Its MR Headset: Apple will likely preview its mixed reality headset at its annual Worldwide Developers’ Conference 2022, Munster said. MR, according to the analyst, is a level of wearable computing that sits between virtual reality and augmented reality.
“While revenue won’t start until 2023, Apple’s headset reveal will be a powerful statement that it means business when it comes to metaverse,” the analyst said.
3. EV Theme To Cool Off: Munster sees a headwind to the EV theme in 2022. The bygone year saw big EV companies and traditional autos stepping into the EV game, the analyst said. Given that investing themes do not repeat in the subsequent year, it is likely that the red-hot EV theme cools off in 2022, he added.
4. Tesla Will Beat Deliveries Forecast, Rivian And Lucid To Lag Behind: 2022 is the year when the EV focus shifts to deliveries, Munster said. Tesla will likely exceed consensus expectations of 1.2 million deliveries and finish the year between 1.2 million and 1.3 million vehicles, the analyst said.
Rivian Automotive, Inc. (NASDAQ:RIVN) and Lucid Group, Inc. (NASDAQ:LCID) will be challenged to meet consensus delivery expectations given they are ramping production into a tight labor and component market, he added. The analyst sees a slight downside to 2022 consensus expectations of 42,000 units for Rivian and 22,000 units for Lucid.
Quantum Computing Theme Gains Prominence: Quantum computing, the analyst said, may not solve the chip shortage, but it ushers in the next evolution of chips.
Quantum computing solutions differ from binary ones in that quantum chips can be both zero and one, simultaneously — a state called superimposition, the analyst said. The ability to operate in superposition exponentially increases the speed of calculations, which improves Silicon’s performance and allows for more complicated problems to be solved, he added.
Companies that could leverage on this evolving theme include large-caps such as Nvidia, Inc. (NASDAQ:NVDA), Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT) and pureplay quantum companies such as IonQ, Inc. (NYSE:IONQ), Munster noted.
Sony To Reenter VR Gaming: Munster expects Sony Group Corporation (NYSE:SONY) to recapture some of the lower-end VR gaming market with a new headset in 2022, offering competition to Facebook’s Oculus.
More Big Brands To Experiment With Digital Goods: NFTs were a major theme for 2021, and forward-thinking brands like Nike, Inc. (NYSE:NKE) and adidas AG (PNK: ADDYY) participated, Munster noted. The analyst expects other fashion and luxury brands to similarly experiment with NFT in 2022.
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