The 5 tech stocks you should have bought in 2020

Economies around the world were hit hard by the COVID-19 pandemic, which limited international trade and forced many companies to temporary or permanently close their doors.

The impact led to the fastest stock market crash in financial history and the biggest since the Wall Street Crash of 1929, which paved the way for the Great Depression.

Fortunately, this came to an end on 7 April, and stock market indexes have started to show significant recovery after the first COVID-19 wave began to wane.

Technology and tech-related companies, however, were some of the major beneficiaries of the pandemic.

With many people forced to work from home, the crisis created a surge of demand for computers, software, and other technologies.

In addition, the need to communicate effectively over long distances necessitated the need for improved network and communication technologies.

Biggest gains

Several technology companies saw their share prices soar to over 100% of their value a year ago.

Online traffic climbed to never-before-seen levels, which provided a boost in revenue to hosting companies like Cloudflare.

Video conferencing software became an essential tool to keep businesses and families communicating, resulting in a big spike for platforms such as Zoom.

Chip manufacturers like AMD and Nvidia were bolstered by significant product launches and acquisitions on the back of increased demand for high-performance hardware.

Less related to the pandemic was the astronomical rise of Tesla, which is now worth more than many of the world’s greatest car manufacturers combined –  Volkswagen, Toyota, Nissan, Hyundai, GM, Ford, Honda, Fiat Chrysler and Peugeot.

What sets it apart from the competition, is its focus on research and innovation that has helped it build class-leading electric battery technology.

The company’s cars have proven so popular, that it has repeatedly beaten earnings estimates, and due to his majority shareholding in Tesla, CEO Elon Musk is currently the second-richest man in the world.

Had you been fortunate or smart enough to buy shares in one of these companies in December 2019, you would have more than doubled your investment by the same time this year.

The graphs below show how AMD, Cloudflare, Nvidia, Tesla, and Zoom shares fared throughout the year.

The prices indicated are from markets closing between 16 December 2019 and 14 December 2020.

AMD – Up 126%

  • $42 to $95

Cloudflare – Up 350%

  • $18 to $81

Nvidia – Up 136%

  • $225 to $532

Tesla – Up 742%

  • $76 to $640

Zoom – Up 500%

  • $66 to $396


Now read: Small business jobs bloodbath in South Africa during lockdown

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The 5 tech stocks you should have bought in 2020