8 Best Long Term Tech Stocks To Invest In Now

In this article, we discuss the 8 best long term tech stocks to invest in now along with the latest developments in the technology industry.

The technology sector came to the market’s rescue in 2023 after the disastrous macroeconomic conditions of 2022. Investments in advanced technologies like generative AI continue to show strong potential for future business growth.

According to CNBC’s Q3 CFO Council survey, 48% of the CFOs said that the tech industry’s growth will outperform all other sectors over the next six months. Moreover, in a September 23 interview with CNBC, Investment Management Partner at Callan Family Office, RaeAnn Mitrione highlighted that the tech sector has been a major beneficiary of the recent Fed rate cut. Lower interest rates are favorable for tech companies, which often thrive in such environments.

The ongoing AI theme has also been a key driver of tech’s strong performance. Additionally, she mentioned that mega-cap tech stocks were previously seen as a safe haven during economic uncertainty, but as the rate environment shifts, the focus may broaden to include smaller, more economically sensitive sectors. Nonetheless, tech’s strong momentum, fueled by AI, is likely to persist for some time.

Optimism in Global Tech Spending for 2024

According to Deloitte’s 2024 technology industry outlook, global tech spending slowed due to high interest rates, economic concerns, and geopolitical issues in 2023. However, optimism is growing for 2024, with projected global IT spending growth of 5.7% to 8%. Some of the growth areas include software, IT services, and AI investments, with AI spending potentially reaching $200 billion by 2025. Cloud computing and cybersecurity are also expected to see strong demand.

The report states that Gen AI is gaining traction but it is expected to grow modestly in 2024, yet more strongly in 2025, with its integration into software and business processes driving productivity and efficiency. AI hardware demand is set to exceed $50 billion next year, while companies continue exploring AI monetization strategies.

Harnessing AI for Greater Energy Efficiency

Additionally, the growing influence of big tech companies and the increasing reliance on AI have led to a significant rise in energy demand. We discussed this in our article about the 13 Best Big Tech Stocks To Buy Now. Here is an excerpt from the article:

“A recent notable trend that people have begun to see because of the rise of big tech companies and the growing use of AI is a greater demand for power. Many major tech companies are beginning to require more energy, with the AWS-owner going as far as buying a nuclear-powered data center for $650 million recently.

The primary driving force for this rising demand is the need to develop AI. Many energy-conscious investors may see this new trend as a red flag for big tech. However, Jensen Huang has noted that while AI takes a ton of energy to train, once developed and trained, it will also help save energy. He particularly noted that AI is going to become so advanced through this development that it will eventually end up offering solutions that can change the way we use energy, making our operations endlessly more energy efficient.”

While concerns about the electricity needed to power AI are justified, according to industry pioneers like Nvidia CEO Jensen Huang, the technology itself will help solve that problem.

With that, we look at the 8 Best Long Term Tech Stocks To Invest In Now.

8 Best Long Term Tech Stocks To Invest In Now

8 Best Long Term Tech Stocks To Invest In Now

Our Methodology

For this article, we used the Finviz stock screener to identify 27 tech stocks with market caps of above $10 billion, Buy or Buy-equivalent ratings from analysts, and over 20% average price target upside. We narrowed our list to 8 stocks with the highest average analyst price target upside as of September 26. The best long term tech stocks are listed in ascending order of their average analyst price target upside.

We also mentioned the hedge fund sentiment around each stock which was taken from Insider Monkey’s database of over 900 elite hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

8 Best Long Term Tech Stocks To Invest In Now

8. GlobalFoundries Inc. (NASDAQ:GFS)

Average Analyst Price Target Upside: 34.94%

Number of Hedge Fund Holders: 21

GlobalFoundries Inc. (NASDAQ:GFS) is a semiconductor foundry that provides a wide range of wafer fabrication services and technologies across the globe. The company produces various semiconductor devices such as microprocessors, mobile application processors, network processors, and power management units.

It has a presence across three continents and 14 facilities, serves over 200 global customers, and collaborates with more than 100 partners, which brings it forward as a key player in the semiconductor industry.

It ranks 8th on our list of the best long term tech stocks to invest in. As per the coverage of 9 analysts, the stock has a consensus Buy rating. As of September 26, the average price target of $55.00 has a 34.94% upside from the present levels.

A significant development for GlobalFoundries (NASDAQ:GFS) occurred in July when the company announced the acquisition of Tagore Technology’s proprietary Power Gallium Nitride (GaN) intellectual property portfolio.

The technology is designed to enhance efficiency and performance in high-power applications, especially in sectors like automotive, the Internet of Things (IoT), and AI data centers. The acquisition not only expands the company’s power IP portfolio but also aligns with the company’s strategy to meet the growing demand for GaN power devices.

In February, the company secured $1.5 billion in direct funding through the U.S. CHIPS and Science Act. The investment aims to facilitate the high-volume manufacturing of critical technologies, including GaN, allowing the company to produce essential chips domestically.

On August 6, Evercore ISI analyst Mark Lipacis lowered the price target on GlobalFoundries (NASDAQ:GFS) to $71 from $77 and kept an Outperform rating. Following the latest quarterly results, Evercore noted that the company exceeded expectations with Q2 revenues and Q3 outlook surpassing Street forecasts by 1%.

The firm highlighted that the company expects consistent quarter-over-quarter growth through 2024, driven by substantial year-over-year increases in the automotive sector and a gradual recovery across other markets.

As the company has exited a capital expenditure cycle, there is an optimistic outlook for free cash flow per share, projected to be 40% to 45% above earnings per share for 2024 and 2025. It positions the company for healthy cash generation and enhances its ability to invest in further growth opportunities.

7. Block, Inc. (NYSE:SQ)

Average Analyst Price Target Upside: 35.30%

Number of Hedge Fund Holders: 59

Block, Inc. (NYSE:SQ) is an innovative company that creates ecosystems focused on commerce and financial services, both in the United States and around the globe. Previously known as Square, Inc., the company rebranded in December 2021 to reflect its expanding vision. It is among our best long term tech stocks to invest in now.

It offers a wide range of products, including the well-known Square payment processing platform, Cash App for peer-to-peer transactions, and TIDAL, a music streaming service. The portfolio positions the company as a significant player in the fintech sector, harnessing technology to streamline financial transactions and empower small businesses.

At a stake value of $2.68 billion, 59 hedge funds tracked by Insider Monkey held positions in Block (NYSE:SQ) in the second quarter. As of Q2, ARK Investment Management is the top shareholder in the company and has a position worth $534.783 million.

In recent times, the company has shifted its emphasis from merely growing revenue to enhancing profitability. The goal is to achieve the “Rule of 40” by 2026, a benchmark used to evaluate the health of software-as-a-service (SaaS) companies. The rule states that the combination of revenue growth and profit margin should total at least 40%.

In the second quarter, the company reported a net income of $195.3 million, or $0.31 per share, which is a substantial 91% increase from the previous year. The Cash App division continues to be a significant contributor to profitability, achieving $1.3 billion in gross profit, which represents a 23% year-over-year increase.

Moreover, the monthly active users of the Cash App Card rose by 13% to over 24 million in June, which is a sign of strong engagement and growing adoption of the platform.

During Q2, Block (NYSE:SQ) achieved gross profit growth of 20% alongside adjusted operating margins of 18%. Projections for the full year suggest a potential operating margin of 35%, an increase from earlier estimates of 32%. The improvement is supported by expectations of more than 18% gross profit growth and operating margins of at least 16%.

For the twelve months ending in June, the company reported adjusted free cash flow of $1.43 billion, 2x compared to the prior period, which represented 57% of adjusted EBITDA. Lastly, the stock has a consensus Buy rating from 44 analysts. The average price target of $90.00 has a 35.30% upside to the current price, as of September 26.

Columbia Contrarian Core Fund stated the following regarding Block, Inc. (NYSE:SQ) in its Q2 2024 investor letter:

“Block, Inc. (NYSE:SQ) – It is hard to pinpoint why the stock moved lower in the last two months of the quarter, but the most likely reason seems to be simply that investor sentiment on the stock remains generally quite negative for the near term. Investors seem to be taking recent comments from Jack Dorsey (CEO of Square, who also heads Square’s parent company, Block) to mean that a lot still needs to be fixed, rather than the perspective that Mr. Dorsey is being honest and straightforward that things weren’t working and that Square now has a clear plan and a lot of urgency behind its initiatives. The reinvigoration of Square appears very real, with a bold vision to become a generational technology company. The organization is aligned on making Square and Cash App a vertically integrated commerce platform for both sellers and consumers. For Square, this means achieving a growth rate similar to its early days with much better technology while, for Cash App, success is defined as becoming the leading primary bank for those making less than $150,000 per year, along with significant success combining the two ecosystems. The experimentation and innovation culture is back with buy-in across the organization, with a key focus on engineering discipline and exceptional products. This discipline had been lost and is now coming back and should create much better product experiences that are customer-problem focused and enable the company to regain its prior pace of market share gains.”

6. Micron Technology, Inc. (NASDAQ:MU)

Average Analyst Price Target Upside: 36.51%

Number of Hedge Fund Holders: 120

One of the best long term tech stocks, Micron Technology, Inc. (NASDAQ:MU) is a well-known supplier of advanced memory and storage solutions that play an important role in various applications, including computers, smartphones, servers, and data centers.

The company’s ability to innovate and manufacture state-of-the-art memory products has been a key driver of growth in the digital economy. It specializes in several types of memory, including DRAM (Dynamic Random Access Memory), NAND flash, and NOR flash, which are integral components in a vast range of technology products, from personal devices to enterprise-level infrastructures.

The company’s products are widely recognized for their high performance, reliability, and energy efficiency, making them essential in today’s tech landscape. Beyond its core memory offerings, it provides a range of services designed to support customers throughout the product lifecycle. These include design and development assistance, comprehensive testing and validation, and effective supply chain management solutions.

The company recently reported its fiscal fourth-quarter earnings on September 25 and it surpassed analyst expectations. Revenue for the quarter reached an impressive $7.8 billion, a remarkable 93% increase compared to the same period last year.

Adjusted EPS soared to $1.18, a significant recovery from an adjusted loss of $1.07 in the previous year. The results not only beat forecasts but also showed a strong turnaround for Micron Technology, Inc. (NASDAQ:MU).

The guidance provided for the upcoming quarter projects revenue of $8.7 billion and adjusted earnings of $1.74 per share, both of which exceed analyst predictions of $8.32 billion and $1.52 respectively.

Much of this success can be attributed to the ongoing demand for high-bandwidth memory chips, especially in AI computing platforms. CEO Sanjay Mehrotra emphasized the company’s optimistic outlook in the fiscal Q4 press release, forecasting record revenue for fiscal Q1 and substantial growth in profitability for fiscal 2025. The positive guidance indicates not only a strong current performance but also a promising trajectory for the future.

Additionally, the stock has a Strong Buy rating from 42 analysts. As of September 26, the average price target of $150.00 implies an upside of 36.51% from current levels.

Parnassus Investments stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q2 2024 investor letter:

“Micron Technology, Inc. (NASDAQ:MU) posted fiscal third-quarter results that met expectations. Micron’s DRAM (dynamic random access memory) and NAND (non-volatile storage technology) segments grew revenue strongly, continuing the company’s recovery from a cyclical downturn last year. We believe Micron is well positioned to capitalize on AI-driven demand for greater memory.”

5. STMicroelectronics N.V. (NYSE:STM)

Average Analyst Price Target Upside: 39.93%

Number of Hedge Fund Holders: 16

STMicroelectronics N.V. (NYSE:STM) is a prominent global semiconductor manufacturer that designs, develops, and markets a diverse range of semiconductor integrated circuits and discrete devices.

It is among our best long term tech stocks to invest in now. The stock has a consensus Buy rating from 26 analysts and the average price target of $41.25 represents an upside of 39.93% from the present levels, as of September 26.

Its products are utilized in a wide range of applications, including automotive, telecommunications, industrial automation, and consumer electronics. With a customer base exceeding 200,000 and a network of thousands of partners, the company is dedicated to creating solutions that address the evolving challenges and opportunities within the microelectronics landscape.

STMicroelectronics’ (NYSE:STM) product portfolio is extensive as it includes key components such as microcontrollers, advanced analog integrated circuits, sensors, and power management devices.

The diversification allows it to serve various sectors, including automotive, industrial, personal electronics, communications, and computing. A significant focus on sustainability is evident in the company’s commitment to becoming carbon neutral in scope 1 and 2 emissions by 2027, with partial efforts targeting scope 3 emissions.

Recently, on September 24, the company unveiled its fourth generation of STPOWER silicon carbide (SiC) MOSFET technology. The latest development sets new standards in power efficiency, density, and strength, which cater specifically to the demands of both the automotive and industrial sectors.

The technology is especially well-suited for traction inverters, which are essential components in electric vehicle (EV) powertrains. The company plans to introduce further advancements in SiC technology through 2027, which is a sign of its dedication to innovation in the semiconductor field.

STMicroelectronics (NYSE:STM) has taken significant steps to improve shareholder value. In the second quarter, the company distributed $73 million in cash dividends and executed an $88 million share buyback as part of a broader initiative that concluded a $1.040 billion repurchase program initiated in July 2021.

In June, the company announced an even more ambitious new share buyback plan with two programs totaling up to $1.1 billion to be implemented over the next three years. Such actions signal a strong commitment to returning capital to shareholders while maintaining a focus on growth.

STMicroelectronics (NYSE:STM) was part of 16 hedge funds’ portfolios that are tracked by Insider Monkey in the second quarter with a total stake value of $231.780 million. D E Shaw is the biggest shareholder in the company and has a position worth $96.072 million as of Q2.

4. Joint Stock Company Kaspi.kz (NASDAQ:KSPI)

Average Analyst Price Target Upside: 46.76%

Number of Hedge Fund Holders: 25

Joint Stock Company Kaspi.kz (NASDAQ:KSPI) is making significant strides in the financial technology and e-commerce landscape of Kazakhstan. It has a strong suite of services, including payments, marketplace solutions, and fintech offerings.

The company’s comprehensive super app caters to both consumers and merchants. The platform integrates cashless payments, personal finance management, e-grocery shopping, travel bookings, and access to various government services, all of which enhance user convenience and promote high levels of engagement.

As a result, a substantial portion of Kazakhstan’s population regularly interacts with the app, which shows its central role in daily financial activities. The company made headlines in January 2024 with a successful initial public offering (IPO) on the Nasdaq, raising over $1 billion and marking a historic moment as the first Kazakh company to debut on this exchange.

The IPO valued Kaspi.kz (NASDAQ:KSPI) at approximately $17.5 billion, further solidifying its status. It ranks 4th on our list of the best long term tech stocks to invest in now.

The continuous innovation within the app, including the launch of Kaspi Travel and Kaspi Classifieds, alongside established services such as buy now, pay later and person-to-person money transfers, demonstrates the company’s commitment to meeting diverse consumer needs.

Financially, it has shown remarkable growth. In the second quarter, net income increased by 25% compared to the previous year, while revenue for the first half of 2024 surged by 38%, reaching KZT1.2 trillion (1 KZT = US$0.0021 as of September 26).

The payments and marketplace segments were crucial to this success, contributing 68% of net income. A focus on maximizing transaction intensity led to impressive increases in transaction volumes, with a 46% rise in the second quarter and a 44% increase for the first half of 2024. The growth of Kaspi Pay transactions and the rapid adoption of B2B payments, along with the sustained popularity of bill payments, played important roles in these achievements.

User engagement metrics further highlighted the app’s success, with an average of 72 transactions per active consumer per month, positioning the Kaspi.kz’s (NASDAQ:KSPI) Super App as one of the most engaged major mobile applications globally, as per the company. Its competitive edge is significantly supported by this large and active customer base.

Additionally, Kaspi’s e-Grocery service is expanding rapidly, having increased its gross merchandise volume by 99% year-over-year and reaching around 639,000 active consumers during the quarter. The recent expansion into Shymkent, Kazakhstan’s third-largest city, indicates strong growth potential in this sector.

As of the first half of 2024, the company boasts a payments platform with 721,000 merchants and a marketplace platform serving 7.6 million consumers. Moreover, as per 9 analysts, the stock has a consensus Buy rating. The average price target of $152.80 represents an upside of 46.76% to its price on September 26.

With its impressive growth trajectory, continuous innovations, and extensive user engagement, the company is well-positioned for continued success in the dynamic fintech landscape of Kazakhstan.

3. Global Payments Inc. (NYSE:GPN)

Average Analyst Price Target Upside: 47.95%

Number of Hedge Fund Holders: 66

Global Payments Inc. (NYSE:GPN) is a leading provider of payment technology and software solutions that facilitate electronic transactions across the Americas, Europe, and the Asia-Pacific. The company offers a comprehensive range of products and services designed to advance the movement of money and manage financial transactions.

The portfolio includes payment processing, merchant services, point-of-sale solutions, and online and mobile payment options. The company caters to a diverse client base, from small businesses to large corporations, financial institutions, and government agencies.

In Q2, 66 hedge funds tracked by Insider Monkey held stakes in Global Payments (NYSE:GPN), with positions worth $3.678 billion. As of the second quarter, Pzena Investment Management is the most significant shareholder in the company. The firm has increased its stake in the company by 195% to 6.4 million shares worth $621.1 million.

At its recent 2024 Investor Conference, the company outlined a renewed focus on operational transformation and long-term value creation. It has identified potential divestitures that could account for approximately $500 million to $600 million in annual revenue.

It indicates a commitment to streamlining operations and enhancing profitability, which will allow Global Payments (NYSE:GPN) to concentrate on its core strengths and drive growth. The company has set ambitious yet achievable targets for 2025, with expectations of mid-single-digit growth in adjusted net revenue, around 10% growth in adjusted EPS, and a 50 basis point expansion in adjusted operating margins.

The outlook for the subsequent years, 2026 and 2027, is equally promising. It expects adjusted net revenue growth in the mid-to-high-single digits, with adjusted EPS growth projected in the low teens.

The company expects its ongoing transformation and streamlining efforts to generate over $500 million in run-rate operating income benefits by mid-2027, with around 30% of these benefits expected to materialize in 2025. The proactive approach to managing operations not only improves profitability but also positions the company favorably for sustainable performance in the competitive payments landscape.

Additionally, Global Payments (NYSE:GPN) has a consensus Buy rating from 37 analysts. As of September 26, the average price target of $144.50 implies an upside of 47.95% from the stock’s price. It is among our best long term tech stocks to invest in now.

Parnassus Investments stated the following regarding Global Payments Inc. (NYSE:GPN) in its Q2 2024 investor letter:

“Global Payments Inc. (NYSE:GPN) stock fell on investor fears that a slowing economy could weigh on payment processing companies. The company will host an investor day focused on improving efficiencies and strategic redeployment of assets in the fall, which we believe will unlock hidden value in the undervalued shares.”

2. Snowflake Inc. (NYSE:SNOW)

Average Analyst Price Target Upside: 51.12%

Number of Hedge Fund Holders: 69

One of the best long term tech stocks, Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform that has revolutionized how organizations handle and analyze data. With its advanced data warehousing solutions, it allows businesses to efficiently store, manage, and share vast amounts of information in real time.

The core of the company’s offering is its cloud data platform, which features a unique architecture that separates storage from computing resources. The design allows customers to adjust their resource allocation independently, which helps avoid the hefty hardware investments typically associated with traditional data management systems.

The range of services provided by the company includes data integration, sharing, and advanced analytics, which serve a wide variety of industries such as healthcare, finance, and retail.

As businesses increasingly rely on data to drive decision-making, it is well-positioned to capitalize on this growing demand. The stock has a consensus Buy rating from 46 analysts and the average price target of $170.00 has an upside of 51.12% from the current levels, as of September 26.

The surge in AI usage further amplifies the need for robust data solutions, and the company’s infrastructure is crucial for supporting these AI workloads. To enhance its capabilities, it has invested in graphics processing units (GPUs), which are important for managing the heavy computational demands of AI.

While these investments have impacted profit margins due to the high costs associated with GPUs, the company’s leadership is focused on ensuring that spending aligns with revenue growth.

At a recent conference, CFO Mike Scarpelli indicated a careful approach to future GPU purchases, emphasizing the importance of revenue to support such investments. He said, “I’m not going to buy any more GPUs until I see the revenue to support it.”

His comments signal a focus on balancing growth with profitability, which can ultimately benefit shareholders. The long-term outlook for Snowflake (NYSE:SNOW) is incredibly promising, as management estimates its addressable market was valued at $153 billion last year, with projections indicating it could reach $342 billion by 2028.

Baron Fifth Avenue Growth Fund stated the following regarding Snowflake Inc. (NYSE:SNOW) in its Q2 2024 investor letter:

“Snowflake Inc. (NYSE:SNOW) is a leading cloud data platform that is predominantly used for data analytics. The stock declined 16.4% as investors evaluated the impact of a recently announced CEO transition, an investment cycle driven by spend on AI, a cybersecurity incident, and a rapidly changing competitive environment. With GenAI capturing a larger portion of the public discourse, Snowflake’s positioning in the future data stack is under scrutiny by both investors and customers. We believe Sridhar Ramaswamy, the newly appointed CEO, can help the business more efficiently transition toward an AI-first world. While Databricks and other key competitors are presenting strong results, we believe Snowflake’s brand, existing customer base, and accelerating product innovation should allow it to continue to capture share in a relatively large and strategic market. Management continues to describe strong demand trends for its core data analytics, which is also demonstrated by the relatively healthy expansion rates among existing customers while new go-to-market initiatives can help grow the customer base further. Longer term, we remain excited about the Snowflake’s strategic opportunity as the data platform for its customers.”

1. NICE Ltd. (NASDAQ:NICE)

Average Analyst Price Target Upside: 56.83%

Number of Hedge Fund Holders: 29

NICE Ltd. (NASDAQ:NICE) is a provider of cloud platforms for AI-driven digital business solutions. It offers a wide range of digital business tools for diverse sectors such as customer engagement, financial crime prevention, and public safety. It tops our list of best long term tech stocks to invest in now.

The company’s offerings, particularly NICE CXone and NICE Actimize stand out for their ability to improve customer interactions and streamline operations. By integrating advanced analytics and artificial intelligence into its platforms, the company helps organizations across the globe improve both customer experiences and operational efficiencies.

With over 25,000 clients in more than 150 countries, including a substantial number of Fortune 100 companies, the company is clearly establishing a strong market presence. Additionally, NICE (NASDAQ:NICE) has received Buy ratings from 17 analysts. As of September 26, the average price target of $265.00 represents an upside of 56.83% to the stock’s current price.

The strong demand for its cloud solutions is impressive. During the second quarter, the company experienced a surge in cloud revenue, which indicates successful penetration into new markets and an expanding customer base.

The adoption of NICE’s (NASDAQ:NICE) CXone is gaining momentum, largely because it offers a comprehensive solution that effectively integrates AI capabilities. Many organizations are recognizing the necessity of adopting AI to remain competitive, and NICE’s platforms are proving to be essential tools in this transition.

It is evidenced by an increasing number of large deals, including significant contracts with major global players. During Q2, the company announced a seven-digit contract with one of the largest IT firms replacing existing systems with CXone, which points to the platform’s superior capabilities in functional AI.

During the same quarter, a well-known global hotel chain opted for NICE’s solutions to support its digital transformation, which signifies the tangible benefits of using CXone autopilot to accurately interpret consumer intents.

According to Insider Monkey’s database, 29 hedge funds held stakes in NICE (NASDAQ:NICE) in the second quarter, with positions worth $742.727 million. With 1.051 million shares of the company, valued at $180.76 million, RGM Capital is the largest shareholder of the company, as of June 30.

Parnassus Investments stated the following regarding NICE Ltd. (NASDAQ:NICE) in its Q2 2024 investor letter:

“NICE Ltd. (NASDAQ:NICE) reported first-quarter earnings that exceeded consensus estimates. However, the stock fell on news the company’s CEO plans to leave at the end of the year and on concerns that its contact center software would be replaced by generative AI. We believe the concerns are overblown and anticipate instead that the firm will integrate AI features successfully.”

While we acknowledge the potential of NICE Ltd. (NASDAQ:NICE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NICE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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