The technology industry’s bull run is expected to continue, bolstered by innovation and government support. Given this backdrop, investing in popular tech stocks Canon Inc. (CAJ), Amkor Technology (NASDAQ:AMKR), and ScanSource , Inc. (NASDAQ:SCSC), which are currently trading above their short- and long-term moving averages, could be rewarding. Let’s discuss.The tech industry has been the biggest beneficiary of the COVID-19 pandemic because the public health crisis has heightened demand for technology at an accelerated pace with the adoption of remote work structures and digital ways of operating businesses. In addition, rapid tech integration in most sectors around the globe has allowed tech stocks to enjoy greater investor interest. And in the U.S., tech budgets are expected to expand 7.4% in 2021 and 6.7% in 2022. Furthermore, substantial federal investments to boost domestic semiconductor chip production should boost the tech industry’s growth over an extended period.
The tech heavy Nasdaq Composite has gained 7.4% over the past three months to hit its all-time high on September 7. The broader S&P 500 index gained 5.3% over this period. Moreover, the Technology Select Sector SPDR Fund (XLK) gained 38.7% over the past year compared to the broader SPDR S&P 500 ETF Trust’s (SPY) 33.3% gain.
Given this backdrop, fundamentally sound tech stocks Canon Inc. (CAJ), Amkor Technology, Inc. (AMKR), and ScanSource, Inc. (SCSC) have been gaining momentum over the past few months. Currently trading above their 50-day and 200-day moving averages, these stocks appear to have plenty of upside remaining.