The information technology sector has soared this year as the stock market has recovered from the doldrums of March, aided by massive government and central-bank stimulus. But the long-term cloud technology trend that has fed so much success for the largest tech companies can no longer be considered new and transformative.
Distributed computing, or the mobile edge cloud The traditional cloud model of having computing done on a server run by Alphabet GOOG, -0.10% GOOGL, -0.05% unit Google, Amazon.com AMZN, -1.32% or Microsoft MSFT, +0.97% won’t work quickly enough for the new array of hands-free devices, the Internet of Things and automated vehicles, Frigon said during an interview.
Four of the five sell-side analysts covering Tower Semiconductor rate the shares a buy or the equivalent, with a consensus price target of $25.03, according to FactSet. That implies 14% upside potential over the next 12 months, based on the closing price of $22.01 on July 21. Analysts expect the company’s sales this year to increase only 3% from 2019, but for 2021, they expect sales to rise by 8%. The company earned a dollar a share in 2019. Analysts expect earnings per share to increase to $1.
Frigon said he had been holding AudioCodes shares for some time before the COVID-19 crisis because he thought remote working would be a growing trend. “Now it’s on steroids,” he said, adding that AudioCodes’ shares are still “reasonably priced.”