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Summary
- Microsoft aims to double its healthcare market share with the acquisition of Nuance.
- AMD now anticipates its full-year revenues to increase 50 percent.
- Palantir’s stock price has soared 84 percent since its listing on NYSE.
Technology was one of the best performing sectors in 2020. Yet, the NASDAQ 100 Index has been an underperformer to the S&P 500 year-to-date.
Recent trends show that investors have turned their attention to stocks whose progress is typically linked to the economy. Tech stocks have been hardest hit from this shift.
Here are three stocks that have performed exceptionally in the last one year.
Microsoft Corp (NASDAQ:MSFT)
The Washington-based technology giant’s share price grew around 28 percent in one year and is up 7.5 percent year to date. In 2020, Microsoft’s stock jumped 86 percent. Two weeks ago, the stock rallied to its 52-week high of US$263.19.
Recently, Microsoft agreed to buy Massachusetts-based Nuance Communications Inc. (NASDAQ:NUAN), which provides AI and cloud-based solutions to healthcare providers. With this US$19.7-billion deal, Microsoft targets to double the addressable market in healthcare to nearly US$500 billion.
Microsoft saw its revenue grow 19 percent in the fiscal third quarter to US$41.7 billion following a strong growth in cloud based revenue. Diluted EPS was up 45 percent to US$2.03 while non-GAAP EPS rose 39 percent to US$1.95.
Advanced Micro Devices, Inc. (NASDAQ:AMD)
AMD is a California-based semiconductor company that makes processors, graphics, technology, & software. The company’s stock almost doubled its price in 2020. Year to date, the shares are up 33 percent.
AMD shares have been on a negative trend since January. However, the hopes are high with the company’s first quarter results, which exceeded its expectations. Also, AMD has lifted its full year outlook.
AMD saw its revenue almost double to US$3.45 billion in the first quarter while its EPS more than tripled. Diluted EPS came in at 45 cents while non-GAAP EPS totaled 52 cents.
The company now anticipates its full-year revenue to increase 50 percent, up from the previous estimate of 37 percent growth. Meanwhile, second-quarter revenue is expected grow 86 percent year over year to US$3.6 billion.
Palantir Technologies Inc. (NYSE:PLTR)
Palantir develops software for counterterrorism operations and data analytic platforms. The Denver-based company’s Gotham platform is used by the U.S. defense agencies and its allies to investigate potential threats including terrorist attacks.
Palantir became public on NYSE through a direct listing on September 2020. The company’s share price is up 84 percent since the listing. The shares, which started trading at US$10, hit its 52-week high of US$45 in January.
The company recently posted a better-than-expected 49 percent year-over-year growth in its first-quarter revenue to US$341.2 million. Adjusted diluted EPS came in at 4 cents, compared with a loss of 1 cent per share in the year-ago period.
Palantir has projected its revenue to grow by at least 30 percent annually in five years.
