3 Tech Stocks That Are Defying Wall Street

When we last spoke, I showed you how Wall Street is sleeping through a powerful rebound in tech stocks that began Aug. 25.

I said that the tech-centric index gained 8.3% in less than two months and is now showing gains of roughly 3.4% for the year.

I also promised I would follow up with you regarding several stocks that I'm sure are greatly oversold and due for a lucrative rebound.

Today I am keeping that promise.

Each of the stocks you're about to discover all bounced back within a day of the Nasdaq Composite Index's rebound.

And each of them has gone on to beat the Nasdaq by at least 200% during the same period.

And as you'll see in a moment, these are all stocks riding strong catalysts that will help them continue to beat the overall market over the next three years...

These "Rebound" Tech Stocks Have It All

tech stocksDuring times like these, it really pays to heed Rule No. 2 of my five-part system for building tech wealth: "Separate the signal from the noise."

Lately, the "noise" out there is the Wall Street-driven misconception that tech stocks are down for the count.

Nothing could be further from the truth.

In fact, I screened several great tech stocks against several factors. I looked at how much their stock price has gone up since the August bottom... what their cash flow position looks like... and (this is key) I made sure I saw solid buying volume.

All three of the tech leaders I'm about to tell you about scored well across the board.

What's more, each one has recently launched new initiatives that will help them grow and expand over the next several years.

Take a look...

Tech Rebound Play No. 1: Intel Corp.

At a company event in August, Intel Corp. (Nasdaq: INTC) CEO Brian Krzanich regaled workers with what sounded like something from a sci-fi movie.

He touted vending machines that people can control with a wave of a hand and digital mirrors that allow you to virtually try on clothes.

This is not some far-off technology. It's all based on a computer vision process Intel calls RealSense. And it's happening right now.

RealSense enables PCs and tablets to scan objects and people in three dimensions. In turn, users can put the image into a computer game or 3D-print a miniature model.

Most investors have never heard of RealSense, but it's a key enabling technology and a potential breakout for Intel.

In fact, "automated retailing," like what those vending kiosks will be a part of, is already a $42 billion market in the United States alone.

The RealSense project, which began in 2011 with just a crew of 25, now has 500 employees devoted to it. Some 25 types of tablets and PCs already ship embedded with RealSense.

And Krzanich recently showed that he can deftly navigate the challenging PC market. So for the September quarter, while Intel saw a 19% drop in unit PC sales, average selling prices showed annual growth of 15%.

All this is occurring as the company puts the final touches on its $16.7 billion buyout of chip firm Altera Corp. (Nasdaq: ALTR). This "bolt-on" acquisition will improve margins and jump-start sales to corporate server farms.

The rebound is off to a good start. Since bottoming out Aug. 25, Intel shares are up 33.7%.

That's more than 300% better than the Nasdaq.

Tech Rebound Play No. 2: Facebook Inc.

To a casual observer, the recent news that Facebook Inc. (Nasdaq: FB) comes in fourth on a list of top social networking apps used by teens may sound like bad news for the Silicon Valley firm.

But in reality, it's great news for shareholders.

That's because Facebook owns the No. 1 app used among teens, Instagram. A recent survey of 9,400 people between the ages of 13 and 19 showed that 33% of them used the photo-sharing app on a regular basis.

Facebook, which acquired Instagram for $1 billion in 2012, recently started posting video ads to the photo- and video-sharing service. That move all but guarantees that Instagram will be a financial juggernaut for Facebook.

Analysts believe Instagram could add as much as $700 million in sales for the current fiscal year. That figure could grow nearly nine fold to $6 billion by 2020 when Instagram's monthly average user base reaches 680 million from roughly 400 million today.

And let's not forget that Facebook dominates the social-networking advertising segment, accounting for nearly 65% of all spending in this space. EMarketer expects Facebook to capture $16.29 billion in global ad sales this year - a 41.8% increase from last year.

All told, Facebook's ad sales are almost double the amount spent on all other social-networking sites combined.

Since the stock rebounded on Aug. 24, it's up 26.4% - more than triple the Nasdaq's performance.

Tech Rebound Play No. 3: Microsoft Corp.

Microsoft Corp. (Nasdaq: MSFT) CEO Satya Nadella has been saying for a year now that he wants to put Microsoft onto the front lines of the mobile revolution.

At an Oct. 6 press event in New York, Nadella showed investors exactly what he has in mind.

He unveiled two new Lumia smartphone models - the 950 and the 950X. Both will run off of the company's main operating system, Windows 10.

The move comes just months after the CEO laid off another 7,800 workers, mostly in the phone business, and took a $7.5 billion "impairment charge" for its Nokia handset division.

Nadella is taking no chances with his mobile offerings.

That's why both phones feature advanced technology Microsoft calls Continuum, which allows users to plug their handsets into a palm-sized cube called the Microsoft Display Dock. From there, the phones connect to a computer monitor and can then essentially be used as a Windows-based PC.

And while that's a neat trick, there's actually more going on here than meets the eye.

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Because at the same time he rolled out those two phones, Nadella also unveiled a new laptop computer, the Surface Book. It's the company's first real attempt at making bona fide computers and not just the software that runs them.

That shows me, in addition to his many other "pluses" as a leader, Nadella also thinks big.

His company now offers smartphones, laptops, and tablets that all run off Windows 10. The idea is to make the company more of a tech "ecosystem," which has been a major success factor for rival Apple Inc. (Nasdaq: AAPL).

Since the stock rebounded on Aug. 25, it's gained 34%, beating the Nasdaq by 309%.

More Tech Profits on the Way

As you can see, all three of these tech leaders have fresh catalysts that show why these stocks are rebounding - and why they will continue to do so.

And I believe their success underscores something we've talked about all year - you should always have some money devoted to technology investing.

If not, you could easily miss out on the chance to turn the kinds of rocky markets we've seen lately to your long-term advantage and steadily improve your net worth.

By the way, I hope you can join our next conversation. There's a fourth big winner I want to share with you.

Until then...

Follow us on Twitter @moneymorning.

There's a Secret Tech Rebound Afoot... Wall Street would have you believe the markets "have fallen and they can't get up." But the Street is clearly clueless, as there's a tech rebound occurring under the radar. And with these four tools, you can turn this hidden tech rebound into gold...

About the Author

Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...

  • He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
  • He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
  • As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.

This all means the entire world is constantly seeking Michael's insight.

In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.

Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.

And even with decades of experience, Michael believes there has never been a moment in time quite like this.

Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.

To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.

His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.

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