With the hybrid working trend and digitization of business processes unabated, the technology industry is expected to continue thriving. So, we think it could be wise to buy the dip in quality tech stocks Activision Blizzard (NASDAQ:ATVI) and Teradata (TDC). Wall Street analysts expect them to gain more than 30% in price in the near term. Read on.The stock market has been volatile owing to the inflationary environment. Nevertheless, despite mixed economic indicators, The Goldman Sachs Group , Inc. (NYSE:GS) expects the S&P 500 to rise 9% to 5,100 by the end of 2022. Furthermore, according to the IDC report, the technology market is expected to exceed $5.3 trillion in 2022.
In addition, since hybrid working is becoming the ‘new normal’ and businesses are digitizing their processes, the demand for technology products and solutions should not decline anytime soon. Investors’ interest in tech stocks is evidenced by the Technology Select Sector SPDR Fund’s (XLK) 8.3% returns over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 5.3% gains.
So, we think fundamentally sound tech stocks Activision Blizzard, Inc. (ATVI) and Teradata Corporation (NYSE:TDC) could be solid additions to one’s portfolio now. They are currently trading below their 52-week price highs, but Wall Street analysts expect them to rally by more than 30% in the coming months.