The Top Unsung Tech-Stock Leaders

Summer is supposed to be the time of lounge chairs and beach balls for the stock market, but someone apparently forgot to tell technology investors.

For the first time in years, the world's largest computer companies are strutting across Wall Street with an undeniable swagger, as second-quarter earnings are likely to come in above expectations and shares are sweeping to multiyear highs.

It's not just Apple's(AAPL Quote) iPhone, either. It's notebook computers, set-top boxes, networking equipment, enterprise servers and high-definition televisions. It's operating systems, digital cameras and DVD players. It's RAM and flash memory.

Indeed, despite bears' forecasts that a plunge in residential real-estate values would scare off consumer and business spending, the demand for things that plug in, turn on and help you tune out is as strong as ever.

Have you taken a glance at the Nasdaq Composite lately? It was only a couple of months ago that the strength of the Dow Jones Industrials was all anyone wanted to talk about. But suddenly, and rather quietly, here in July the Nasdaq has slipped into the lead among the major indices for the year, the recent stumble notwithstanding. It has clocked a rather stunning 10% return so far in 2007, compared with 7% for the S&P 500.

Unsung Stock Heroes

"Stunning" seems like the right word, because the Nasdaq hasn't busted a move like this for three long years. In 2006, the tech-heavy index peaked briefly with a 10% gain for the year in November but then slacked off and ended the year up only 8%. In 2005, it peaked at 5% in November and ended the year up 2%. In 2004, it peaked at 7% at the end of the year. So a 10% advance in six months should definitely get your attention.