The tech industry’s growth is driven by the rising demand for personal computers and other gadgets, the proliferation of internet connectivity, and the increasing need to stay up-to-date with technology. The introduction of cutting-edge technologies like cloud computing, AI, IoT, and data analytics further stimulates the industry’s expansion.

Given the industry’s bright prospects, investors could consider investing in fundamentally sound tech stocks TDK Corporation (TTDKY), Seiko Epson Corporation (SEKEY), and LiveRamp Holdings, Inc. (RAMP) with solid growth attributes.

According to the International Data Corporation (IDC) report, the global shipments of personal computers market marked 1.5% growth year-over-year in the first quarter of 2024, with 59.8 million shipments returning to pre-pandemic levels with the onset of a refresh cycle for PCs and indicating significant scope in the segment.

Moreover, thanks to mobility and versatility, personal computers, laptops and tablets are continuously gaining popularity. This has propelled the IT hardware market growth significantly. The IT hardware market is poised to grow to $191.03 billion by 2029, expanding at a CAGR of 7.9%.

The worldwide IT spending is on the rise, with an expected $5 trillion in 2024, reflecting an increase of 6.8% from the previous year, according to Gartner. This year, it is anticipated that companies and organizations will emphasize and invest in planning to use GenAI.

Besides, the IT services market revenue is projected to reach $495.30 billion in 2024. The revenue is further anticipated to expand at a CAGR of 6.15% during the forecast period (2024-2028), resulting in a market volume of $628.80 billion by 2028. Key trends prompting market growth are 5G, blockchain, AR, AI, data-driven analysis, and IT cloud services.

Moreover, investors’ interest in tech stocks is evident from the iShares Global Tech ETF’s (IXN) 39.1% returns over the past year.

Given the industry’s bright prospects, investors could buy fundamentally strong tech stocks TTDKY, SEKEY, and RAMP for substantial returns.

Let’s discuss the fundamentals of these stocks in detail:

TDK Corporation (TTDKY)

Headquartered in Tokyo, Japan, TTDKY engages in the manufacturing and selling of electronic components internationally. The company operates in Passive Components; Sensor Application Products; Magnetic Application Products; Energy Application Products; and Other segments.

On January 9, 2024, TTDKY and The Goodyear Tire & Rubber Company (GT) collaborated to advance next-generation tire solutions to accelerate the development and adoption of integrated intelligent hardware and software into tires and vehicle ecosystems.

Through this partnership, the companies aim to develop a collection of sensors and related technologies for use in vehicles and tire applications. It will further accelerate technological innovation and offer better customer access to the highest-performance sensor technology in the market.

On January 4, 2024, TTDKY’s subsidiary TDK Ventures, Inc. invested in Singaporean tech disruptor Silicon Box and its innovative semiconductor chiplet packaging design and fabrication capabilities, allowing newfound performance and scale standards.

The strategic investment will allow TTDKY to further its commitment to finding and impact scaling technologies with digital and energy transformation and bring critical innovation to the semiconductor market.

In the third quarter that ended December 31, 2023, TTDKY reported net sales of ¥559.25 billion ($3.68 billion). Its operating profit grew 2.7% year-over-year to ¥70.20 billion ($462.38 million). The company’s profit before tax increased 12.7% from the year-ago value to ¥76.88 billion ($506.38 million).

In addition, net profit attributable to owners of parent and EPS came in at ¥65.30 billion ($430.13 million) and ¥171.77, up 30.8% year-over-year, respectively.

Street expects TTDKY’s revenue and EPS to increase 3.1% and 38.2% year-over-year to $3.80 billion and $0.95 for the second quarter ending September 2024, respectively. Moreover, TTDKY topped the consensus revenue estimates in three of the trailing four quarters.

TTDKY’s stock gained 38.8% over the six months and 48% over the past year to close the last trading session at $49.31.

TTDKY’s bright outlook is reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

The stock has a B grade for Sentiment, Stability, Growth, and Value. TTDKY is ranked #4 out of 38 stocks in the B-rated Technology – Hardware industry.

Click here to access additional TTDKY ratings for Quality and Momentum.

Seiko Epson Corporation (SEKEY)

Based in Suwa, Japan, SEKEY develops, manufactures, sells, and offers services for products in printing solutions, visual communications, manufacturing-related and wearables, and other businesses. The company operates through three segments: Printing Solutions; Visual Communications; and Manufacturing-related and Wearables.

On March 7, 2024, SEKEY expanded its line-up of inertial measurement units (IMU) with high-performance, six-degrees-of-freedom sensors. The new line-up will expand its platform products and offer customers more options, allowing them to pick the best functions and performance products for their particular needs and applications.

On January 19, 2024, SEKEY and Development Bank of Japan Inc. invested in California-based 3DEO Inc., a start-up with fully integrated services for designing and manufacturing complex metal parts. The investment will expand SEKEY’s operations and help promote manufacturing innovation.

For the nine months that ended December 31, 2023, SEKEY posted revenue of ¥992.10 billion ($6.53 billion), and its profit from operating activities was ¥51.70 billion ($340.51 million). The company’s profit for the period attributable to owners of the parent company and EPS came in at ¥42.47 billion ($279.72 million) and ¥128.06, respectively.

In addition, the company’s total assets came in at ¥1.36 trillion ($8.94 billion) as of December 31, 2023, compared to ¥1.34 trillion ($8.83 billion) as of March 31, 2023.

Analysts expect SEKEY’s revenue to grow 23.6% year-over-year to $8.80 billion revenue for the fiscal year that ended March 2024. Also, for the second quarter ending September 2024, the company’s revenue is expected to increase 1.9% year-over-year to $2.21 billion.

SEKEY’s shares have surged 14.2% over the past six months and 23% over the past year to close the last trading session at $8.78.

SEKEY’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.

The stock has an A grade for Value and Momentum. It also has a B grade for Stability and Quality. Within the B-rated Technology – Hardware industry, SEKEY is ranked #6 out of 38 stocks.

In addition to the POWR Ratings I’ve just highlighted, you can see SEKEY’s ratings for Sentiment and Growth here.

LiveRamp Holdings, Inc. (RAMP)

RAMP is a tech company that operates a data collaboration platform internationally. The company operates the LiveRamp Data Collaboration platform, which supports several people-based market solutions like data collaboration, analytics, and data marketplace. It sells its solutions to enterprise marketers, agencies, and data providers in multiple industry verticals.

On February 28, 2024, RAMP introduced the next generation of the LiveRamp Data Collaboration Platform, providing solutions for the end-to-end marketing lifecycle onto a single platform. It introduced new capabilities like a simplified user interface, composable technology for cross-cloud interoperability, and a partner marketplace.

The new enhancements allow RAMP’s customers to collaborate with any partner, activate data to any destination, and access more solutions from one place.

On February 1, 2024, RAMP completed the acquisition of Habu, a data clean room software provider that makes sharing data across organizations safe, simple, scalable, and smart.

The combination of LiveRamp and Habu will establish the industry-leading interoperable platform for data collaboration across all clouds and walled gardens worldwide, expanding the company’s collaboration network and driving the adoption of its core identity and connectivity solutions.

On January 25, RAMP became the first Addressable Media Identifier (AMI) company certified by the Digital Advertising Alliance (DAA), the ad industry’s self-regulatory body for relevant digital advertising. With this certification, companies can recognize LiveRamp as a partner best suited to assist both the buy- and sell-side to connect data better and enhance customer experiences.

In the fiscal 2024 third quarter that ended December 31, 2023, RAMP’s total revenue increased 9.4% year-over-year to $174 million. Its non-GAAP gross profit grew 8.3% year-over-year to $131 million. Its non-GAAP operating income was $36 million, up 38.5% from the previous year’s quarter. Its adjusted EBITDA increased 38.7% year-over-year to $36.98 million.

In addition, the company’s non-GAAP net earnings came in at $32 million, or $0.47 per share, up 68.4% and 67.8% from the prior year’s quarter, respectively.

Analysts expect RAMP’s EPS for the first quarter (ending June 2024) to increase 2.6% year-over-year to $0.30, and its revenue is estimated to grow 8.3% year-over-year to $166.89 million for the same period, respectively. Furthermore, the company has topped the consensus EPS estimates in all of the trailing four quarters, which is impressive.

Over the past six months, the stock has gained 20.1% and 54.4% over the past year to close the last trading session at $35.37.

RAMP’s promising outlook is reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.

The stock has a B grade for Growth, Quality, Sentiment, and Value. Within the Technology – Services industry, RAMP is ranked #5 among 81 stocks.

Click here to access additional ratings of RAMP.

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TTDKY shares were trading at $50.27 per share on Tuesday morning, up $0.96 (+1.95%). Year-to-date, TTDKY has gained 6.23%, versus a 9.53% rise in the benchmark S&P 500 index during the same period.

About the Author: Mangeet Kaur Bouns

Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions. More...

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