Technology stocks

MSFT, AAPL, NVDA, HPQ and AVGO

Shares of Microsoft Corporation (NASDAQ: MSFT), NVIDIA Corporation (NASDAQ: NVDA), Apple Inc. (NASDAQ: AAPL), etc. made headlines this week following the release of their financial results.

This year, the tech sector has been under pressure due to various macro concerns such as high inflation, worries about a slowing economy and, most recently, the latest rate hike on Wednesday July 27th. Some experts believe that the Fed Reserve’s aggressive stance on lowering inflation could tip the economy into a recession.

How do these top tech stocks fare in all of this? Let’s find out.

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Microsoft Corporation (NASDAQ: MSFT)

The $1.97 trillion market capitalization company’s revenue increased 12% year-on-year to $51.9 billion in the fourth quarter of fiscal 2022. In constant currency, its revenue business would have climbed 16% year-on-year. .

Its operating profit rose 8% year-on-year to $20.5 billion in the fourth quarter of FY22. Microsoft’s net income and diluted earnings per share (EPS) were $16.7 billion and $2.23 each, up 2% and 3% year-over-year, respectively.

For the fiscal year that ended June 30, 2022, the tech giant reported revenue of $198.3 billion, up 18% year-on-year, and its net profit jumped by 19% year-on-year to $72.7 billion.

MSFT stock is up 9.23% from its 52-week low of $241.51 (Jun 14, 2022) at the time of writing. Although the tech stock has fallen 7.88% in one year and 21.51% in 2022, it posted gains of 2.79% this month.

According to Refinitive, Microsoft’s Relative Strength Index (RSI) was 53.33 on July 28. An RSI between 0 and 30 indicates oversold and 70 to 100 means overbought. On the other hand, the 30-50 range indicates volatility, and 50-70 suggests the stock is in a steady state.

Apple Inc. (NASDAQ:AAPL)

One of the leaders in the technology sector, the value of Apple shares increased by 5.13% on an annual basis. However, this year, AAPL stock has fallen 13.16%.

At its current price, the Cupertino, Calif.-based company’s stock is up 19.53% from its 52-week low of US$129.04 (June 16, 2022).

In the third quarter of fiscal 2022, the iPhone maker’s total net sales were US$82.95 billion, up 2% from US$81.43 billion in the third quarter of 2022. exercise 21.

Its net income also fell to $19.44 billion, or $1.20 per diluted share in the third quarter of FY22, from $21.74 billion, or $1.30 per diluted share in the third quarter. closed on June 26, 2021.

Nvidia Corporation (NASDAQ: NVDA)

Although NVDA stock has lost 41.12% year-to-date (YTD) and 9.85% YoY, it has recorded gains of 14.22% this month.

At the time of writing, it was 23.23% above its 52-week low of US$140.55 (July 5, 2022). It reached the 52-week high of US$346.47 in November 2022.

In July, the GPU maker announced a unified computing platform that would help advance quantum research and developments in artificial intelligence (AI), healthcare, finance and other fields. .

The Santa Clara, Calif.-based company’s revenue jumped 46% year-over-year to $8.29 billion in the first quarter of FY23, buoyed by revenue from its data center and games. However, its net income fell 15% year-on-year to $1.61 billion, or $0.64 per diluted share, in the first quarter of fiscal 2023.

HP Inc. (NYSE: HPQ)

The Palo Alto, Calif.-based tech company holds an annualized dividend of US$1. The US$33.26 billion market capitalization company announced a cash dividend of US$0.25 on June 21 (payable October 5).

In the second quarter of FY2022, HP’s GAAP net revenue increased 3.9% year-on-year to US$16.5 billion. It reported net profit of US$1 billion, down 19% year-on-year.

For the third quarter of fiscal 2022, HP expects its diluted net EPS to be between $0.91 and $0.96.

HPQ stock has fallen 14.58% year-to-date while climbing 13.29% year-over-year.

Broadcom Inc. (NASDAQ:AVGO)

The semiconductor manufacturing company’s stock has lost 21.50% this year, but posted year-on-year gains of 9.86%.

As of this writing, AVGO stock has crossed its 52-week low of US$462.66 (August 19, 2021) by 12.88%. The San Jose, Calif.-based company has an RSI of 57.67, according to Refinitive, which suggests it may be in stable condition.

The chipmaker’s revenue rose 23% year-on-year to $8.10 billion in the second quarter of FY22. Its net profit improved to $2.59 billion, or $5.93 per diluted share, compared to its Q2 FY21 net income of $1.49 billion, or $3.30 per diluted share.

At the end of the line

The tech sector has suffered the most this year as investors appear to be focusing on safer assets amid the market downturn. However, given the demand for their services, the sector is expected to rebound in the coming quarters.

The S&P 500 fell 13.44% year-on-year while gaining 5.64% month-to-date (BAT). On the other hand, the tech-savvy Nasdaq Composite Index has fallen 24.06 year-to-date while gaining 7.74% this month.

The technology sector provides some essential services like software as a service (SaaS), semiconductors, etc., the demands of which have increased significantly in recent times.