5 Red-Hot Tech Stocks to Buy Before the End of the Year

Tech stocks are poised to increase even more should a second wave of the virus force people indoors through the winter and possibly the entire spring. Though a couple of coronavirus vaccines appear to show promise, it will take two rounds of the vaccine and a halt in virus mutations to bring an end to the pandemic.

In the meantime, certain tech stocks are likely to boom. The only question is which specific tech stocks will pop in the months ahead.

Here is a quick look at five blazing hot tech stocks every investor should consider buying before the start of the new year: Qualcomm (QCOM), Texas Instruments Incorporated (TXN), ServiceNow (NOW), Analog Devices (ADI), and Ubiquiti (UI).

Qualcomm (QCOM)

The digital wireless telecommunications products made by the likes of QCOM are likely to prove even more popular should the pandemic continue through the winter and spring. Check out QCOM's POWR Ratings, and you will find "A" grades in the Industry Rank, Buy & Hold Grade, and Trade Grade components. QCOM is ranked third out of nearly 90 publicly traded companies in the Semiconductor & Wireless Chip industry.

Most analysts are bullish on QCOM, setting an average price target of $155.45, indicating a potential 5% upside. Furthermore, investors should be ecstatic that QCOM has received a license to sell 4G chips to Huawei. Add in the fact that QCOM has a reasonable forward P/E ratio of 21, and investors have even more reason to consider buying around the $150 level.

Texas Instruments Incorporated (TXN)

Few stocks are as hot as TXN. This Dallas-based company makes digital signal processing, mixed-signal, and analog integrated circuits. The company's manufacturing and design facilities, including its wafer fabrication and test/assembly operations, are firing on all cylinders. TXN will likely play an increasingly important role in providing the chips that automate all different devices, ranging from cars to smartphones, medical devices, and beyond.

TXN has soared from its coronavirus low in the $90s to more than $150. TXN has "A" grades in the Industry Rank, Buy & Hold and Trade Grade POWR Ratings components. TXN is ranked fifth out of 86 stocks in the Semiconductor & Wireless Chip industry. The stock's 2.58% dividend makes it all the more attractive.

ServiceNow (NOW)

Cloud stocks have been one of the better places to park your money during the pandemic. NOW is one such high-flying cloud stock. NOW's cloud-based services automate IT operations.

The POWR Ratings show NOW has "A" grades in the Buy & Hold and Trade Grade components. NOW is ranked first out of nearly 50 stocks in the Software - Business industry.

Analysts have set a price target of $581.21, indicating NOW has a potential upside of nearly 15%. NOW could move back toward its November high of $531.08 by year's end.

Analog Devices (ADI)

Digital signal processing integrated circuits made by ADI are used in computers, consumer products for industrial purposes, and elsewhere. The POWR Ratings reveal ADI has "A" grades in the Peer Grade, Buy & Hold Grade, Trade Grade, and Industry Rank components.

ADI is ranked in the top 10 out of 86 publicly traded stocks in the Semiconductor & Wireless Chip industry. Out of the 13 analysts who cover ADI, every one of them rates the stock a "Buy," setting an average price target of $143.15.

ADI's solid third-quarter results reveal the company has stabilized its revenue, and a return to the spectacular numbers of prior quarters might not be far away.

Ubiquiti (UI)

UI's wireless networking solutions and products are bound to prove that much more popular as the pandemic continues. The company provides the infrastructure for wireless broadband and wireless local area network infrastructure.

Check out UI's POWR Ratings, and you will find the stock has "A" grades in the Peer Grade, Buy & Hold Grade, and Trade Grade components. UI is ranked second out of more than 50 publicly traded companies in the Technology - Communication/Networking industry.

UI revenue is up 46.5% compared to the 10.1% growth in the prior quarter. Furthermore, the company's earnings are up more than 70%, coming in at double what analysts expected.

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QCOM shares were trading at $150.61 per share on Wednesday morning, up $1.87 (+1.26%). Year-to-date, QCOM has gained 74.32%, versus a 13.77% rise in the benchmark S&P 500 index during the same period.

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.

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