In this article, we discuss 5 best-performing tech stocks of 2022. If you want to see more of the top performers in the sector, check out 10 Best-Performing Tech Stocks of 2022.
5. Gorilla Technology Group Inc. (NASDAQ:GRRR)
Number of Hedge Fund Holders: N/A
YTD Share Price Gain as of September 15: 19%
Gorilla Technology Group Inc. (NASDAQ:GRRR) is a Taiwanese company with offices in the United States, The Netherlands, China, Hong Kong, Japan, Australia, Thailand, Indonesia, and Saudi Arabia. The company went public via a SPAC merger through Global SPAC Partners in July 2022, and the combined firm had an enterprise value of $708 million. The company provides video intelligence, Internet of Things security, and edge content management hardware, software, and services.
Gorilla Technology Group Inc. (NASDAQ:GRRR) stock has gained 19% year to date as of September 15, which makes it one of the best-performing tech names for 2022.
4. Aspen Technology, Inc. (NASDAQ:AZPN)
Number of Hedge Fund Holders: 18
YTD Share Price Gain as of September 15: 49.15%
Aspen Technology, Inc. (NASDAQ:AZPN) is a Massachusetts-based company that offers enterprise asset performance management, asset performance monitoring, and asset optimization solutions worldwide. The company specializes in artificial intelligence, aspen hybrid models, OSI digital grid management, and performance engineering. Aspen Technology, Inc. (NASDAQ:AZPN) is one of the top tech stocks for 2022, given the shares jumped 49% YTD as of September 15.
The company reported its FY 2022 business outlook on August 8. Aspen Technology, Inc. (NASDAQ:AZPN) expects total revenue of $1.14 billion to $1.20 billion, compared to a $788.29 million Wall Street consensus. The non-GAAP net income per share is projected to come in between $6.40 to $6.89, versus a $5.53 consensus.
On August 16, Wolfe Research analyst Gal Munda initiated coverage of Aspen Technology, Inc. (NASDAQ:AZPN) with a Peer Perform rating. The analyst is “extremely positive” on Aspen Technology, Inc. (NASDAQ:AZPN) after the Emerson deal announcement. The analyst believes the valuation gap that emerged from the deal has now closed and is waiting for synergies to offer more upside.
According to Insider Monkey’s data, 18 hedge funds were long Aspen Technology, Inc. (NASDAQ:AZPN) at the end of Q2 2022, compared to 22 funds in the last quarter.
Here is what Baron Asset Fund has to say about Aspen Technology, Inc. (NASDAQ:AZPN) in its Q1 2022 investor letter:
“Shares of Aspen Technology, Inc. (NASDAQ:AZPN), a leader in process automation software, gained after the company reported a 6% acceleration in organic growth. We expect Aspen to close its transformative deal with industrial equipment manufacturer Emerson this quarter. We believe Aspen management will improve the growth, profitability, and cash flow of the acquired Emerson businesses by converting them to recurring revenue models, while leveraging Emerson’s vast sales force to improve the entire company’s growth rate. We also expect the company to become more aggressive with accretive acquisitions, and we believe the healthy environment for energy and other commodities should provide a supportive backdrop for sales growth.”
3. Sierra Wireless, Inc. (NASDAQ:SWIR)
Number of Hedge Fund Holders: 23
YTD Share Price Gain as of September 15: 74.86%
Sierra Wireless, Inc. (NASDAQ:SWIR) was incorporated in 1993 and is headquartered in Richmond, Canada. The company provides device-to-cloud Internet of Things solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company announced Q2 non-GAAP earnings per share of $0.43 and a revenue of $187.95 million, topping market forecasts by $0.15 and $13.5 million, respectively. Sierra Wireless, Inc. (NASDAQ:SWIR) experienced solid demand and combatted supply chain tightness effectively, leading to positive June quarter results. The stock has gained about 75% year to date as of September 15.
TD Securities analyst Daniel Chan on August 4 downgraded Sierra Wireless, Inc. (NASDAQ:SWIR) to Tender from Hold with a price target of $31, up from $22, after the company announced that it will be acquired by Semtech Corporation (NASDAQ:SMTC) for $31 per share. The analyst believes that the proposed transaction is fair in value.
According to Insider Monkey’s Q2 data, 23 hedge funds were long Sierra Wireless, Inc. (NASDAQ:SWIR), compared to 19 funds in the prior quarter. Douglas T. Granat’s Trigran Investments is the biggest position holder in the company, with 4.45 million shares worth more than $104 million.
Here is what Voss Capital has to say about Sierra Wireless, Inc. (NASDAQ:SWIR) in its Q3 2021 investor letter:
“We have had some success by investing in hardware-to-software business transitions, specifically with Extreme Networks (EXTR), Avid Technologies (AVID), and PAR Technologies (PAR). Our underlying thesis has been that these transitions are less understood and perceived to be riskier than perpetual software to SaaS software conversion stories. Indeed, transition is typically longer and requires more fundamental disruption, as the hardware R&D/sales process is significantly different than a Perpetual License to SaaS change. However, if you have a large captive customer base and a competent management team to execute on the plan, the rewards can be even greater, since the company often starts from a much lower valuation than a traditional software company.
It is against this backdrop that we introduce a new core sized position (a 6.6% portfolio weight), Sierra Wireless (SWIR). Sierra Wireless has a long and winding corporate history. By our count, they have gone through eight total business pivots from their IPO at the height of the Internet bubble through today, leaving many long-term investors understandably skeptical of yet another strategy pivot by newly appointed CEO Phil Brace…” (Click here to read the full text)
2. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 25
YTD Share Price Gain as of September 15: 46.48%
Super Micro Computer, Inc. (NASDAQ:SMCI) is a California-based company that develops and manufactures high-performance server and storage solutions based on modular and open architecture. After posting market-beating FQ4 results, the company laid out guidance for the fiscal year 2023 ending June 30, 2023. Super Micro Computer, Inc. (NASDAQ:SMCI) expects net sales of $6.2 billion to $7.0 billion, GAAP net income per diluted share of at least $7.27, and non-GAAP net income per diluted share of at least $7.50. Meanwhile, the consensus EPS estimate for FY2023 is $6.41 and consensus revenue estimate is $6.17 billion. The stock has climbed about 46.5% YTD as of September 15.
Susquehanna analyst Mehdi Hosseini on August 12 raised the price target on Super Micro Computer, Inc. (NASDAQ:SMCI) to $88 from $70 and maintained a Positive rating on the shares. The analyst said the company posted another beat in the June quarter and he noted that it is gaining market share from the bigger competitors. Super Micro Computer, Inc. (NASDAQ:SMCI) can potentially gain an extra 50-100bps in margins as its Taiwan facility ramps, but the analyst remains cautious about the near-term.
Among the hedge funds tracked by Insider Monkey, David Brown’s Hawk Ridge Management held the leading stake in Super Micro Computer, Inc. (NASDAQ:SMCI) at the end of June 2022, comprising 1.5 million shares worth $59.3 million. Overall, 25 hedge funds were bullish on Super Micro Computer, Inc. (NASDAQ:SMCI) in Q2 2022, up from 16 funds in the preceding quarter.
1. Jack Henry & Associates, Inc. (NASDAQ:JKHY)
Number of Hedge Fund Holders: 17
YTD Share Price Gain as of September 15: 16.39%
Jack Henry & Associates, Inc. (NASDAQ:JKHY) is a Missouri-based provider of technology solutions and payment processing services for financial organizations in the United States. On August 22, Jack Henry & Associates, Inc. (NASDAQ:JKHY) declared a $0.49 per share quarterly dividend, in line with previous. The dividend is distributable on September 29, to shareholders of the company as of September 9. The stock has climbed over 16% year to date as of September 15, making Jack Henry & Associates, Inc. (NASDAQ:JKHY) one of the best-performing tech stocks for 2022.
RBC Capital analyst Daniel Perlin on August 18 raised the price target on Jack Henry & Associates, Inc. (NASDAQ:JKHY) to $199 from $190 but kept a Sector Perform rating on the shares. Despite record sales by the company in FQ4 and expected higher annual demand, multiple cost pressures will potentially result in flat margins in FY23, the analyst told investors in a research note. He added that Jack Henry & Associates, Inc. (NASDAQ:JKHY)’s latest acquisition of Payrailz will be slightly dilutive to FY23 EPS.
Among the hedge funds tracked by Insider Monkey, 17 funds were bullish on Jack Henry & Associates, Inc. (NASDAQ:JKHY) at the end of June 2022, compared to 16 funds in the last quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the leading stakeholder of the company, with 266,500 shares worth $48 million.
Here is what Conestoga Capital Advisors has to say about Jack Henry & Associates, Inc. (NASDAQ:JKHY) in its Q4 2020 investor letter:
“This company provides core processing and other complementary software solutions to small and medium-sized banks and credit unions. Despite reporting solid fiscal first quarter results, improved business momentum and modestly higher annual guidance, the stock was mostly unchanged during the quarter and detracted from performance in the strong tape.”
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