Since the start of 2023, many stocks have gradually risen, with the Nasdaq Composite index up roughly 14% year to date. The improvement has come as inflation is showing signs of easing and investors are optimistic about the prospects of a new year.
After the index plunged 33% in 2022, the potential start of a recovery could mean now is the perfect time to add some new stocks to your portfolio.
Here's why Apple (AAPL 0.51%), Corsair Gaming (CRSR 2.15%), and Alphabet (GOOG 1.43%) (GOOGL 1.42%) are no-brainer buys right now.
Apple: The king of reliability
Apple didn't become the world's most valuable company with a market cap of $2.9 trillion by accident. It did so by consistently offering high-quality products presented in an interconnected ecosystem that is both consumer-friendly and difficult to abandon for competing devices.
The company's winning strategy has helped its stock rise 274% over the last five years and 822% over the last decade. Meanwhile, Apple's revenue has increased by 48% to $394 billion since 2018, and operating income has grown 68% to $119 billion in the same period.
With reliable long-term growth, it's not surprising the iPhone maker is Berkshire Hathaway's biggest holding. Apple is responsible for 39.6% of the company's portfolio and has made significant gains since Warren Buffett's company added the stock in 2016.
Over the next few years, Apple has some exciting projects reportedly in development, such as a mixed-reality headset. It's also continuing to grow its booming services business, and opting to create more in-house components in its iPhone. As a result, now is a great time to invest in Apple's stock.
Corsair Gaming: A promising two-year outlook
As a leader in gaming PC accessories such as keyboards, mice, headsets, cases, and more, Corsair Gaming had a challenging 2022. The company's stock plummeted 35% last year as demand in the PC market slowed. However, Corsair shares have risen 30% since Jan. 1 in large part thanks to a promising earnings release.
On Feb. 9, Corsair reported its Q4 2022 results, in which revenue of $398.73 million beat analysts' estimates by $20.2 million. While revenue was down 22% year over year, the better-than-expected figure cheered investors. CEO Andy Paul attributed the positive results to boosted holiday sales from recent product launches by Nvidia, AMD, and Intel.
The PC market was hit hard by macroeconomic headwinds in 2022, with worldwide shipments for graphics processing units (GPUs) falling by 42%. However, Corsair's quarterly report could be a sign that the market is improving.
Nvidia and AMD are currently in the process of releasing their new lineups of GPUs, which are customarily staggered over two years. Market leader Nvidia debuted its most powerful new GPUs in 2022 and is expected to launch its mid- and low-tier cards, the most consumer-friendly and often best-selling, within 2023 and 2024. The same is also true of AMD. As Corsair sales often follow the GPU market, the company could benefit as PC owners upgrade their components.
It might feel risky to invest in a PC-dependent stock like Corsair after the market struggled last year. However, according to AP News, inflation eased for the sixth month in a row in December by 6.5%. That improvement, coupled with the launch of lower-priced GPUs, could create all the difference for Corsair, making its stock a no-brainer buy right now.
Alphabet: Making inroads in lucrative markets
Alphabet shares sunk roughly 39% in 2022 because its advertising-dependent business was hurt by an economically challenging environment, which led many companies to slash budgets. However, Alphabet remains home to potent brands such as Android, YouTube, Fitbit, and the many Google services, which will likely keep it expanding for decades. Given the company's shares are still down 29% year over year, there's a compelling opportunity to buy this growth stock for a bargain.
While most of Alphabet's income is tied to advertising, it has a promising future in two burgeoning markets: cloud computing and artificial intelligence (AI).
In Alphabet's fiscal 2022, its Google Cloud segment reported revenue growth of 37%, hitting $26.2 billion. The cloud computing platform achieved an 11% market share in Q3 2022, the third largest after Amazon Web Services and Microsoft's Azure.
In addition to cloud computing, Alphabet announced in a recent earnings call it would focus more on AI going forward, investing $300 million in AI start-up Anthropic. The AI market was valued at $136.55 billion in 2022 and is projected to expand at a compound annual growth rate of 37.3% through 2030, according to Grand View Research. Considering Alphabet has an 80%-plus market share in search, expanding further into AI could enhance users' experience in many of its services, giving it an edge in the booming market.
Alphabet had a challenging 2022, but it remains an unstoppable tech giant with a promising outlook. And now is an excellent time to invest in this no-brainer stock.
