Markets are volatile this month, with the magnitude of shifts being most pronounced in the tech-heavy NASDAQ. That index fell 7.5% from its high on September 2 – a drop significant enough to wonder if this was just a correction or a true reversal in the bull market we saw over the summer. However, in the last few meetings the index has increased. the weekend started well with a plus of 2.3%. The rapid rise in the NASDAQ over the summer was no accident. It was based on the actual contributions that technology companies make to the economy and our lives. From the 5G rollout to improvements in semiconductor chips to the expansion of functions for IoT and intelligent devices – technology is everywhere and growing rapidly. Best of all, you don’t have to buy in from the tech giants to participate. There are plenty of cheaper tech stocks out there with clear paths up – sometimes even paths to triple digit stock appreciation. Investment banking firm Needham, which ranks a top spot on TipRanks’ top performing research firm, has pointed out two such stocks. TipRanks’ stock comparison tool allowed us to rate these stock selections side by side to get a sense of what the analyst community had to say. Applied Optoelectronics (AAOI) Applied Optoelectronics is a leader in the fiber optic cable market High-end network cables and ancillary equipment for the telecommunications, fiber optic, home cables and Internet data center markets. These are important markets with different needs – and great demand. AO’s income reflects the high demand. The company reported $ 65.2 million for the second quarter, up 61% from the previous quarter and 50% year over year. Margins fluctuated but were 21% in the second quarter. The company posted a net loss of 40 percent per share for the quarter, but improved 33% sequentially. Alex Henderson, a 5-star analyst at Needham, is impressed with the results from Applied Optoelectronics and says so bluntly. While Henderson acknowledges some concerns about margins, “AOI released a tremendous beat and an even bigger 3Q guide of trends that appear to be accelerating in Q4 and FY21. The CATV business, Telecom 5G chips and Data Center 100G products far exceeded all expectations. The combination of improved 100G volumes, increasing CPRI 25G chip sales, recovering CATV sales offers upside potential for sales, improvement in gross margins and a clearer path to cash flow and EPS profitability. “Given these bullish comments, it’s no wonder that Henderson is rating AAOI stock for a buy, or that its price target of $ 22 for the next 12 months implies a 105% uptrend. (To see Henderson’s track record, click here) While Henderson is bullish, Wall Street is more cautious. The analyst consensus rating for AAOI is a hold, based on 7 most recent ratings split into 1 buy, 4 hold and 2 sell. The stocks are priced at $ 10.73 and average Target sold of $ 16.43 suggests upside potential of 55% for a year. (See AAOI stock analysis on TipRanks) Viomi Technology Company (VIOT) Next up is a Chinese technology company, Viomi, a holding company that has a network Controlled by holding companies in t The IoT Sector. Viomi products include smart home enabled devices, from fans and refrigerators to h in to water heaters and washing machines. The company’s subsidiaries develop and market the devices to a domestic Chinese customer base – and with an urban population of 831 million and growing size and wealth, that customer base is huge. As in most countries, China experienced an economic slowdown in the first half of the 20th century, with the coronavirus pandemic. Viomi, whose sales and earnings increased in 2019, saw a decline in the first half of this year. In the second quarter, sales were $ 238.4 million. That was far less than the $ 1.74 billion in the fourth quarter of 19. EPS, which had fallen from 20 cents to 6 cents in the first quarter, rose slightly to 8 cents in the second quarter. While the financial results were in doubt, Viomi reported that customer growth remained stable. For the second quarter, the company reported a cumulative budget coverage of 4.2 million. That was an increase of 3.7 million in the first quarter and 2.3 million in the second quarter of 19. And Viomi sees repeat customers – the company reports that 19% of household users have at least two connected devices, compared to 16% a year ago. Vincent Yu, an analyst who reviews Viomi for Needham, believes the company has a pretty normal path to retail success. “With the introduction of new product lines such as smart TVs and air conditioners, we believe Viomi has reached a milestone in terms of expanding the categories. We expect the introduction of new SKUs with higher ASPs and the reduction of discounts for newly introduced product categories, ”said the analyst. “We believe Viomi’s gross margin for the first half of 20 was in line with industry trends. The entire home appliance industry saw significant headwinds due to Covid 19 […] We believe the industrial and consumer demand rebound that began in June will boost gross margin in 2H20. “Yu’s buy rating here includes a price target of $ 12.50. This suggests a year-long upside of 117% for the stock. The company is currently selling for $ 5.76 a share. (To see Yu’s track record, click here Overall, Viomi is rated as a “moderate buy” on Wall Street, with a buy and hold rating from analysts. The consensus price target of $ 9.40 shows this, up 63% from current levels. (See VIOT – Share analysis on TipRanks.) To find good technical ideas for trading stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly introduced tool that brings together all of TipRanks’ stock insights those of the analysts featured. The content is for informational purposes only, it is very important that you do your own research before making any investment.