7 tech predictions for 2022: Apple-Facebook showdown in Metaverse, Tesla reigns supreme, Quantum takes big step forward, and more – Apple (AAPL), Microsoft (MSFT), Tesla Motors (TSLA)
Technology stocks stood out in 2021 with their solid performance and supported the overall market. As the new year begins, a senior analyst provides a better understanding of what to expect for the industry in 2022.
Here are the 2022 forecasts from Gene Munster, Managing Partner of Loup Funds, for several top tech stocks:
1. Apple, Facebook to obtain the best honors: Apple Inc. (NASDAQ: AAPL) will likely be the top performing FAANG stock in 2022, although it faces competition from Meta Platforms, Inc. (NASDAQ: FB), analyst Munster said. Investors are likely to view these two companies as the safest choices for investing in the Metaverse, he added.
2. Apple will finally unveil its MR headset: Apple will likely preview its mixed reality headset at its 2022 annual global developer conference, Munster said. MR, according to the analyst, is a level of wearable computing that sits between virtual reality and augmented reality.
“While revenue won’t start until 2023, Apple’s headset reveal will be a powerful statement that this is business as far as the metaverse is concerned,” the analyst said.
3. EV theme to cool off: Munster sees a headwind on electric vehicles in 2022. The past year has seen large electric vehicle and traditional auto companies enter the electric vehicle game, the analyst said. Since the investment themes do not repeat the following year, the hot EV theme is likely to cool down in 2022, he added.
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4. Tesla will beat delivery forecasts, Rivian and Lucid will be lagging behind: 2022 is the year the focus is on deliveries, Munster said. Tesla will likely exceed consensus expectations of 1.2 million deliveries and end the year between 1.2 million and 1.3 million vehicles, the analyst said.
Rivian Automotive, Inc. (NASDAQ: RIVN) and Lucid Group, Inc. (NASDAQ: LCID) will be challenged to meet consensus delivery expectations as they ramp up production in a tight labor and components market, he added. The analyst sees a slight downside to the 2022 consensus expectations of 42,000 units for Rivian and 22,000 units for Lucid.
The topic of quantum computing is gaining importance: Quantum computing, the analyst said, may not solve the chip shortage, but it ushers in the next chip evolution.
Quantum computing solutions differ from binary solutions in that quantum chips can be both zero and one, simultaneously – a state called superposition, the analyst said. The ability to work in overlay exponentially increases the speed of calculations, which improves Silicon’s performance and allows more complex problems to be solved, he added.
Companies that could benefit from this evolving theme include large caps such as Nvidia, Inc. (NASDAQ: NVDA), Alphabet, Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) and Microsoft Corporation (NASDAQ: MSFT) and pure quantum companies such as IonQ, Inc. (NYSE: IONQ), noted Munster.
Sony is reintegrating the VR game: Munster is waiting Sony Group Company (NYSE: SONY) to reclaim some of the low-end VR gaming market with a new headset in 2022, offering competition to Facebook’s Oculus.
More top brands to experiment with digital products: NFTs were a major theme for 2021, and forward-thinking brands like Nike, Inc. (NYSE: NKE) and adidas AG (PNK: ADDYY) participated, noted Munster. The analyst expects other fashion and luxury brands to similarly experience NFT in 2022.
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