Stocks to watch as UK tech spend rises

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 Stocks to watch as UK tech spend rises
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Highlights

  • Tech spend in the UK has reached its highest point in more than 15 years this year.
  • Over half (52%) of the UK tech leaders are expecting their budget to increase, the latest report reveals.
  • Despite expectations of tech budget hikes, the UK has witnessed a slowdown in investments across developing tech fields, including Big Data, AI, and RP.

Tech spend in the UK has reached its highest point in more than 15 years this year. This happened even though 90% of digital leaders across the UK were anticipating an economic slump.

The world’s greatest running survey of leading decision makers in the technology arena recently unveiled that just about one out of seven senior tech leaders in the UK anticipate that their technology budget will drop. On the other hand, over half (52%) of the tech leaders expect their budget to increase.   

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However, despite expectations of tech budget hikes, the UK has witnessed a slowdown in investments across developing tech fields, including Big Data, AI, and RP, according to the Nash Squared Digital Leadership Report, in partnership with CIONET. This investment drop is endangering the innovation prospects through worldwide economic uncertainty.

Even though investments in the cloud continue to stay solid, businesses have been slashing their investments in RPA and Big Data, which are crucial to innovation and competitive edge in the tech market.

While the cloud is attracting massive investments, over one-third of UK tech leaders have said that the cloud is responsible for the rise of several security concerns due to the complexity of its functioning. Over the past two years, approximately half of the UK’s biggest firms, having an overall IT budget of $250 million, reported a major cyber-attack.

Amid these developments, UK investors can keep an eye on the performances of the following information technology stocks listed on the London Stock Exchange.

Nanoco Group plc (LON: NANO)

The returns of the company specialising in the production of cadmium-free quantum dots,

Nanoco Group plc stood at 55.47% and 73.60% on a one-year and YTD (year to date) basis, respectively, as of Monday. After closing at GBX 34.65 on Friday, NANO shares were slightly up on Monday morning at around 10:15 AM (GMT), trading at GBX 34.70 while experiencing a hike of 0.14%. With a market cap of £111.72 million at the time of writing, the NANO’s EPS stood at -0.01.

Micro Focus International plc (LON: MCRO)

The returns of the FTSE250-listed IT business offering software and consultancy, Micro Focus International plc, stood at 29.01% and 25.98% on a one-year and YTD basis, respectively, as of Monday. After closing at GBX 521.40 on Friday, MCRO shares were slightly down on Monday morning at around 10:15 AM (GMT), trading at GBX 521.20 while experiencing a drop of 0.04%. With a market cap of £1,767.91 million at the time of writing, the company’s turnover stood at £1,277,796.06.

Xaar plc (LON: XAR)

The returns of the global leader in producing drop-on-demand inkjet technologies, Xaar plc, stood at 21.51% and 8.92% on a one-year and YTD basis, respectively, as of Monday. After closing at GBX 192.70 on Friday, XAR shares were up on Monday morning at around 10:15 AM (GMT), trading at GBX 193.80 while experiencing a hike of 0.57%. With a market cap of £151.17 million at the time of writing, the company’s EPS stood at -0.15.

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