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Investors were already treading with caution due to the spike in COVID-19 infections in Europe. And the emergence of the new strain of COVID-19 has left them further spooked. Global markets plunged as initial reports suggested that this variant could be more transmissible than the Delta variant. Tech stocks had driven the market indexes higher in 2020 due to an unexpected surge in digitization and work-from-home arrangements. The tech industry is further expected to grow in the foreseeable future due to the increasing applications of tech solutions across several sectors, and the continuing hybrid working trend. According to Forrester’s report, the U.S. tech spending is expected to expand by 7.4% in 2021 and 6.7% in 2022.
Given this backdrop, we think it could be wise to scoop up quality large-cap tech stocks Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (GOOGL), and Broadcom Inc. (AVGO). They are currently trading below their respective 52-week highs. However, they have immense growth potential and could offer stable returns even if the market remains volatile.
