The tech industry is expected to witness rapid growth over the long term, fueled by the ongoing digital transformation. And because semiconductors are the backbone of a plethora of tech products, we think multi-billion-dollar investments in this space should drive the performances of semiconductor companies Lam Research (LRCX), KLA (KLAC), and STMicroelectronics (STM) in the coming months. Let’s discuss.Since last year, the tech industry has been in the limelight, given accelerated demand for advanced tech productions and solutions amid remote working trends and rapid digital transformation. In this environment, companies are investing significantly in developing breakthrough technologies to stay ahead of the competition.
In 2023, $30 billion in revenue is expected to be generated by products and services that did not exist prior to the pandemic, according to Gartner (NYSE:IT). The research and advisory company also projects the worldwide IT spending will total $4.2 trillion in 2021, increasing 8.6% year-over-year. Furthermore, governments are investing substantially to overcome a current shortage in semiconductor production, which is expected to accelerate tech innovation in the long run.
Given this backdrop, we believe tech companies Lam Research Corporation (NASDAQ:LRCX), KLA Corporation (KLAC), and STMicroelectronics N.V. (STM) are well-positioned to deliver significant returns in the upcoming months.