Out on Wall Avenue, who has been main the cost ahead? Tech. After the area’s key gamers dragged the market decrease in September on account of overheated valuations, tech is as soon as once more on the helm.The rise in tech is smart. The pandemic helped speed up a transfer towards distant work and telecommuting, and this in flip has put a premium on tech merchandise. From the 5G rollout, to enhancements in semiconductor chips, to the enlargement of IoT and good gadget capabilities – tech is in every single place, and it’s rising quick.Bearing this in thoughts, we turned to Needham, which lands among the many prime ten on TipRanks’ record of High Performing Analysis Corporations, for some inspiration. The agency’s analysts spotlight three tech shares that seem particularly compelling, noting at the least 30% upside potential might be in retailer for every.We’ve used the TipRanks database to tug the main points on these three tech picks, to search out out what makes them such compelling alternatives.Silicon Movement (SIMO)Bringing intensive expertise to the desk, Silicon Movement supplies high-performance storage options broadly utilized in smartphones, PCs, information facilities and industrial and industrial functions. Following a bang-up quarter, Needham believes this tech title has a brilliant future forward.Writing for the agency, analyst Rajvindra Gill tells shoppers that based mostly on SIMO’s preannouncement, Q3 gross sales are set to land 8% above his unique forecast, with EPS additionally beating his estimate by $0.09.What was behind this stable displaying? A restoration in shopper SSDs. In Q2, SIMO’s shopper SSD enterprise, particularly the module maker element, declined as NAND flash makers allotted NAND capability away from shopper SSDs to hyperscalers, to help the spike in information consumption on the community. Nonetheless, the alternative occurred in Q3. Together with a pause in hyperscale spending, module clients have been allotted extra NAND capability as NAND pricing declined quarter-over-quarter.To this finish, Gill thinks NAND pricing might decline one other 5-10% quarter-over-quarter in This fall. He added, “We anticipate the decline in NAND pricing to additional stimulate shopper SSD adoption in This fall as this market is quiet worth elastic, particularly the channel markets.”To a lesser extent, a rebound in China handsets together with a continued ramp of 5G handsets contributed to SIMO’s robust efficiency, in Gill’s opinion.What’s extra, the analyst argues that next-generation gaming consoles and desktop gaming might additional enhance SSD demand. Gill factors out that based mostly on studies from MSI, the board maker for Nvidia GPUs, demand for cheaper SSDs for higher-end gaming desktop computer systems is on the rise.Expounding on this, Gill acknowledged, “This might be doubtlessly COVID-19 associated demand as extra individuals (of all ages) keep residence and discover extra time to play video video games. Furthermore, we anticipate SIMO to take part within the next-generation gaming consoles (PS5, Xbox) popping out within the Fall. SIMO is transport its PCIe SSD controllers into 5 out seven of the NAND makers bought into the sport consoles; we imagine two out of 5 might be SIMO’s suppliers.”If that wasn’t sufficient, though the penetration charges for laptops stay comparatively excessive at 80-90%, Gill believes connect charges for SSDs within the desktop market might speed up, driving upside in CY21.Given all the above, Gill stayed with the bulls. Together with a Purchase ranking, he retains a $55 worth goal on the inventory. Buyers might be pocketing a achieve of 30%, ought to this goal be met within the twelve months forward. (To look at Gill’s monitor report, click on right here)Turning to the remainder of the Avenue, the bulls have it on this one. With four Buys and a lone Maintain, the phrase on the Avenue is that SIMO is a Robust Purchase. At $49.60, the common worth goal implies ~18% upside potential. (See SIMO inventory evaluation on TipRanks)Domo (DOMO)As a enterprise cloud software program specialist, Domo helps its clients combine information from any supply, flip information into stay visualizations and lengthen BI into apps. Based mostly on optimistic momentum in addition to new offers, Needham thinks that now could be the time to snap up shares.After the corporate reported spectacular fiscal Q2 2021 outcomes, 5-star analyst Jack Andrews stands squarely with the bulls. Income of $51.1 million blew each his and the consensus estimate out of the water. Moreover, subscription income, billings and non-GAAP EPS exceeded his expectations.“In our view, Domo seems to be benefiting from tailwinds associated to the continued pandemic and improved gross sales execution (i.e. playbooks and an enhancing accomplice ecosystem) because it closed a notable quantity of enormous offers throughout the quarter,” Andrews defined.In response to administration, demand for digitizing enterprise processes and real-time analytics is accelerating because of the pandemic. It’s additionally seeing extra clients allocate IT budgets to modernizing BI and gathering insights from darkish information. To this finish, DOMO finalized a number of over $100,000 offers in hard-hit industries like health and manufacturing. On prime of this, it closed a multi-million greenback take care of one of many world’s largest retailers that started with the preliminary use case of making insights throughout its analytics stack, however now extends to new use instances similar to an utility for retailer restocking.Andrews additionally factors out that momentum from the state-level COVID monitoring continues to work within the firm’s favor, because the state of Iowa expanded considerably and prolonged its contract by two years. With the assistance of a accomplice, it inked a seven-figure contract to energy a public-facing web site to trace pandemic funding grants in early fiscal Q3 2021.What’s extra, Andrews highlights the “encouraging commentary” from administration on its path to money circulation breakeven, which ought to “alleviate any remaining monetary considerations.”To sum all of it up, Andrews acknowledged, “We imagine Domo has created a singular platform levered to the long run necessities of enterprise analytics (self-service and scalability) with out the exorbitant prices of implementation. As administration executes modifications in its gross sales technique, we imagine Domo, which trades at an EV/income a number of low cost, can shut the relative valuation hole to its Huge Knowledge software program peer group.”Consistent with his optimistic strategy, Andrews reiterated a Purchase ranking and $61 worth goal. This goal places the upside potential at 46%. (To look at Andrews’ monitor report, click on right here)With regards to different Wall Avenue analysts, opinions are break up evenly. With three Buys and three Holds assigned within the final three months, DOMO earns a Reasonable Purchase consensus ranking. Clocking in at $47.17, the common worth goal implies 13% upside potential. (See Domo inventory evaluation on TipRanks)Everspin Applied sciences (MRAM)Final however not least, now we have Everspin Applied sciences, which develops and manufactures discrete magnetoresistive RAM or magnetoresistive random-access reminiscence (MRAM) merchandise, together with Toggle MRAM and Spin-Switch Torque MRAM (STT-MRAM) product households. Whereas the corporate has confronted headwinds lately, Needham believes that MRAM might be a long-term winner.Agency analyst Rajvindra Gill, who additionally covers SIMO, is a critical fan. In keeping with the broader trade, information heart demand has been moderating, which coupled with COVID-19-related headwinds, resulted in Q3 gross sales steering that missed the mark.It must be famous that STT-MRAM is nearly utterly information heart, whereas Toggle has some information heart publicity since Toggle is utilized in RAID controllers. Moreover, because of COVID-19, there was a surge in information heart demand within the first half of 2020, boding effectively for MRAM. Nonetheless, by the top of Q2, there was a rise in buyer stock.“Whereas this enhance is partially on account of provide chain considerations, we imagine the primary cause is a possible peak and anticipated slowdown in information heart demand… Nonetheless, we view the information heart stock digestion as a brief setback, with a restoration anticipated in This fall,” the analyst commented.Including to the excellent news, MRAM thought that COVID-19 would negatively impression its potential to safe new design wins. That stated, design wins grew by 16% quarter-over-quarter in Q2, which is over thrice larger than the prior-year quarter. Gill talked about, “We anticipate development to re-accelerate because the market recovers.”The corporate kicked off mass manufacturing shipments of 32Mb Toggle MRAM product to a rising set of consumers, with it planning so as to add totally different package deal and temperature grades to increase to new buyer functions. If that wasn’t sufficient, the second pivotal design win for MRAM’s 1Gb STT-MRAM product is predicted to begin manufacturing shipments in Q3 “right into a persistent reminiscence utility for an OEM that sells into information heart.”Though gross margins have been briefly mushy for Toggle and STT-MRAM because of the work-from-home setting, Gill argues that within the subsequent few quarters, margins for each are prone to get well, pushed by manufacturing efficiencies and decrease materials procurement prices.Every thing that MRAM has going for it satisfied Gill to take care of his Purchase ranking. Along with the decision, he left the worth goal at $10, suggesting 44% upside potential. Wanting on the consensus breakdown, it has been quiet in relation to different analyst exercise. As Gill is the one analyst that has printed a assessment lately, MRAM has a Reasonable Purchase consensus ranking. (See MRAM inventory evaluation on TipRanks)To seek out good concepts for shares buying and selling at engaging valuations, go to TipRanks’ Greatest Shares to Purchase, a newly launched software that unites all of TipRanks’ fairness insights.Disclaimer: The opinions expressed on this article are solely these of the featured analysts. The content material is meant for use for informational functions solely. It is extremely vital to do your personal evaluation earlier than making any funding.