Investors may be worried about the future of the computer and technology sector, especially now that the former darling in the space, NVIDIA Co., is threatening to go into a correction in potentially the coming months. However, recent economic data suggests that there are other names in the space that are still worth taking another look into.
These stocks share the same characteristics that the manufacturing PMI index reported in its latest issue, so the odds are in favor of bulls in MicroStrategy Inc. (NASDAQ: MSTR), SAP (NYSE: SAP), and even PTC Inc. (NASDAQ: PTC). These names would expose investors to the potential bull runs that could be seen in the cryptocurrency space as interest rate cuts work their way through Bitcoin and give it a run higher.
More than that, finance is now relying on software applications and increased technology implementation in daily operations, and this portfolio aligns investors with that rising demand trend as well. Not to mention the artificial intelligence capabilities needed in the product development and visualization space. Here are some of the fundamental and technical factors that place the odds in favor of these companies this cycle.
Key Fundamental Drivers Fueling the Computer Software Industry
The main drivers in the manufacturing PMI index are new orders, production, and inventories. Both new orders and output moved significantly over the last report, with inventories contracting aggressively, which signals ...
