My 3 Top Stocks for 2022
Is it just me or does it seem like the years have flown by thanks to the ongoing global pandemic? It feels like just yesterday we were welcoming in 2021 in hopes that COVID-19 would soon be behind us. Well, here we are, on the edge of entering year three of living with the novel coronavirus. It also means we can start making predictions for 2022! Without further ado, here are my top three stocks for next year.
Nio (NYSE:NIO)
Readers of the site must be tired of hearing about Nio, but I will continue to hammer home the investment thesis. Nio has been caught in the perfect storm of bad headlines this year: a total collapse of the Chinese tech industry, an ongoing sell off in popular growth names, and volatility in the electric vehicle sector. The results? Shares of Nio are now down 47% year to date despite the company providing valuable insight into the future of the brand.
I may sound like a broken record, but after a stock has fallen 47% in a year, there is light at the end of the tunnel. First, Nio’s production capacity is about to double, which is the first step in helping the company reach profitability. Next, several new models are set to launch this year including a rumored new sub-brand which it will develop alongside BYD. Finally, global expansion is on Nio’s radar. The company is already making its way throughout Europe, and recent job postings based in the US have hinted that Nio could be making its way stateside sooner rather than later.
Block (NYSE:SQ)
Block (it still feels weird) has had a volatile year as many growth stocks have. Part of the problem is that a large part of its merchant base is out of business or at the very least affected by the ongoing pandemic. Combine that with the uncertainty around a name change and identity, and it is not surprising that shares of Block have fallen by nearly 27% year to date.
Another major issue with Block is its ties to cryptocurrencies such as Bitcoin. CEO Jack Dorsey has been bullish on crypto adoption and we have seen Block add it into several different areas of its business including the ever popular Cash App. Growth names will stabilize and so too will Bitcoin in the long run. The potential for Block is just too great, especially with Dorsey no longer splitting time with Twitter. As the economy reopens, I love Block to bounce back as digital transactions continue long after the pandemic has ended.
NVIDIA (NASDAQ:NVDA)
Yes, I know how much NVIDIA has already run in 2021. I know it’s multiples are way higher than semiconductor rivals like Qualcomm (NASDAQ:QCOM) and Broadcom (NASDAQ:AVGO). To me, it doesn’t matter. NVIDIA is just built differently, and I believe in its role as a leader in the upcoming Metaverse, which should change the way we use the internet.
Data centers are going to be the key to advancing technology in the future and NVIDIA has already taken the lead in this industry. With its proposed role as the go to utility and enterprise platform for all things Metaverse, NVIDIA is already taking the lead in that industry as well. It’s expensive, I get it. But my investing strategy revolves a lot around buying great companies and holding them for years. NVIDIA fits this mould to a tee and I truly believe it will soon be a trillion dollar company in the near future.
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