5 Tech Stocks That Berkshire Hathaway Also Missed

Netflix (NFLX) has run up an incredible 1,393.77% in the past five years to $155.64. The company has been capitalizing on its original content strategy, adding 29 original shows and movies to its streaming site just this month with plans to produce a total of 1,000 hours of original programming this year. The company estimated it will spend $6 billion on content in 2017.

Nvidia (NVDA) came in second place with a 792.26% increase in the past five years to $103.27 as it rides the wave of success chipmakers have had as demand increases and chip prices increase. In 2016 alone the company boasted gains of nearly 300%, leading some investors to wonder if it will be able to deliver another impressive performance in 2017. In an interview on Monday morning, TheStreet's Jim Cramer said to be cautious when investing in Nvidia. "I think Nvidia is a great company but the stock is elevated versus its comparisons," he explained.

Micron Technology (MU) is another chipmaker that has been benefiting from the positive chip environment, posting gains of 327% in the past five years, just above Amazon's 318.37% gain. While it has risen 26% year-to-date, the stock is down slightly in Monday afternoon trading after Goldman Sachs downgraded the stock to "neutral" from "buy" on a valuation call. In addition, the company named SanDisk (SNDK) co-founder and former CEO Sanjay Mehrotra.

Software company and cloud leader Adobe Systems (ADBE) has gained $101.89 per share or 313.31% in the past five years to its current price of $134.80. Adobe has become "the pure play on adoption of the cloud," said Cramer of the company's successful transition to a cloud company. The company made a an important acquisition in December when it bought video ad tech firm TubeMogul for $540 million, allowing it to provide clients with both marketing software and a platform for making ad purchases.

Broadcom (AVGO) is another stock that's up on the chip industry's boom cycle. In the past five years, shares of Broadcom have gained 253.31% to $224.92. Broadcom CEO Hock Tan claimed that the Samsung Galaxy S8 smartphone would help the company's results in the second quarter, which is important since it's usually a slower period for its other big client Apple (AAPL) . Some investors have been rotating into Broadcom from Nvidia (number two on this list) as shares of Nvidia have had trouble gaining momentum recently.

Source: Thestreet
Trader I. Ivanov

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