What are the Top Tech Stocks to Invest in for an Impressive Growth?

Want to start off your investment journey with stocks or are you simply looking for the best tech stocks to invest in? Here’s a list of some exceptionally great stocks along with additional data for beginners.

Stocks are one of the most well-known investment roads that a lot of businesses, as well as individuals, take. Stocks are known for their incredible returns and capacity to turn small amounts of money into huge capital. The situation is so great that it is a job in itself, and a high-paying one.

On the other hand, the amount risk of losing money is also a lot higher in this investment option. This is the reason investors try to take the safest roads by analyzing and assessing different stock options in different industries. Out of all the industries, the technology is well-known to give huge returns as well as decent dividends. A stock’s strength lies in the strength of its company and there are plenty of strong contenders in the technology industry. Therefore, a lot of investors prefer to invest in tech stocks. 

In this article, we will be talking about different types of stocks, their advantages, associated risks, and top tech stocks to invest in. Therefore without further await, let’s start with this article.

Types of Tech Stocks

The technology sector is broad and encompasses a wide range of industries. Here are some of the most common types of tech stocks to invest in 2023:

1. Hardware

These are the companies that manufacture hardware that is later used to assemble IT devices. Some of the most prominent best stocks to invest in 2023 for this category are Apple, Microsoft, Samsung, etc.

2. Software

IT devices run on software. The software are computer programs that make any user capable of doing multiple operations using IT devices. Software manufacturing is a domain that is always on the high rise and has major players. Players that are reinforcing the power of best tech stocks to invest. Some examples of these technology companies to invest in are Microsoft, Ubisoft, Salesforce, etc.

3. Semiconductors

ICs or integrated circuits are an important part of the IT industry. Without ICs, there won’t be processing power and capability to compute different functionalities. Without ICs, there won’t be any logic gates that make a computer take decisions. Some of the well-known companies in this domain of the best tech stocks to buy now are Intel, Nvidia, AMD, etc.

4. Networking

These are the companies that provide networking equipment and other associated services such as switches, routers, bridges, hubs, modems, etc., and even networking solutions. Some of the best tech stocks to invest in this domain are Cisco, Juniper Networks, and Arista Networks.

5. Internet

These are companies that provide Internet-related services. The service could involve search engines, social media platforms, e-commerce websites, etc. Some of the best tech stocks to invest in this domain can be from companies like Alphabet, Meta (formerly known as Facebook), Amazon, etc.

6. Cloud Computing

These are the companies that provide cloud computing solutions and services for multiple reasons. These multiple reasons are data storage, computing power, software architecture, etc. Some of the known best tech stocks to invest in this domain are Amazon Web Services, Microsoft Azure, Google Cloud Platform, etc.

Top Tech Stocks to Invest in 2023

Right now, there are plenty of best tech stocks to invest in. Considering the companies mentioned below are established, they are good for long-term investment. Adding to it, these can be considered safe bets for a short-term investment, however, the percentage of gains won’t be that high.

Note: The data mentioned below was taken on 27th July 2023. It can vary depending on when you are reading the article.
To keep track of top tech stocks, checkout these best investment apps.

Inc. (AAPL)

• Market Capital:  $3.06 Trillion
• Dividend Yield: 0.49%
• Share Price: $194.50
• 10-Year Avg Annualized Return: 30.42%

About the Company: Apple formerly known as Apple computer company was founded on April 1st, 1976. Apple since its inception has created a range of products from personal computers to music streaming services such as Macbook Air, iMac, Mac Studio, iPhone, iPad, Apple Music, etc. Since its inception, the company has provided yearly returns of 11.2% in the S&P 500 segment.

Microsoft Corporation (MSFT)

• Market Capital: $2.51 Trillion
• Dividend Yield: 0.81%
• Share Price: $337.77
• 10-Year Avg Annualized Return: 27.26%

About the Company: Founded on April 4th, 1975, the company was led by Bills Gates and Paul Allen. Microsoft has a range of services and products such as Azure, Microsoft Windows, MS Office, Visio, Xbox, etc. Microsoft has achieved decent growth since its inception and is amongst the biggest technology companies.

Advanced Micro Devices. (AMD)

• Market Capital: $177.28 Billion
• Dividend Yield: 0.00%
• Share Price: $110.09
• 10-Year Avg Annualized Return: 38.67%

About the Company: AMD abbreviation for Advanced Micro Devices is an American multinational that produces semiconductors. The company found by Jerry Sanders in the year 1969. The company is known for creating a range of processors, graphic cards, pro graphics, embedded processors, etc.

Alphabet Inc. Class A (GOOGL)

• Market Capital: $1.64 Trillion 
• Dividend Yield: 0%
• Share Price: $129.27
• 10-Year Avg Annualized Return: 17.06%

About the Company: Alphabet is the parent company of Google and is considered one of the big five. The company was founded in the year 2015 with the intention of making it public. Some of the products of Alphabet are Search, Google Maps, ads, Gmail, etc. Alphabet has sustained an annual revenue rate of 9.7%.

NVIDIA Corp (NVDA)

• Market Capital: $1.12 Trillion
• Dividend Yield: 0.035%
• Share Price: $452.52
• 10-Year Avg Annualized Return: 61.86%

About the Company: NVIDIA Corporation is primarily known for its compelling graphics that it sells to its customers. It is a Santa Clara-based American multinational established in the year 1993. Just like other companies in this list, NVIDIA corporation also offers a range of products such as Graphic cards, studio laptops, desktop computers, Shield, networking services, etc. NVIDIA has had an annual revenue rate of 61.4% since 2021. 

Salesforce Inc. (CRM)

• Market Capital: $219.71 Billion
• Dividend Yield: 0.00%
• Share Price: $225.58
• 10-Year Avg Annualized Return: 18.02%

About the Company: Salesforce is a CRM (customer relationship management) service that is omnipresent across industries. They cater to a variety of clients that belongs to different fields of work such as sales, customer service, marketing automation, e-commerce, etc. The company has seen a year-over-year growth rate of 11.28%. 

Broadcom Inc.(AVGO)

• Market Capital: $368.57 Billion
• Dividend Yield: 2.06%
• Share Price: $893.09
• 10-Year Avg Annualized Return: 40.35%

About the Company: Broadcom Inc. deals in semiconductors and infrastructure software solutions. Their products cater to a wide range of services such as data centers, networks, software, broadband, wireless, etc. The different types of products that are offered by the company such as storage & systems, wireless, wired connectivity, optical products, mainframe software, cybersecurity, and enterprise software. The growth rate of the company has been around 21% since 2022.

Adobe Inc. (ADBE)

• Market Capital: $234.53 Billion
• Dividend Yield: 0.00%
• Share Price: $514.55
• 10-Year Avg Annualized Return: 27.19%

About the Company: Adobe is another really famous company in its niche. The American multinational was founded in the year 1982 and since then it has been running its operations successfully. Adobe offers a wide range of designing products such as After Effects, Adobe Acrobat, Adobe Photoshop, Adobe Animate, etc. It is a great stock considering its revenue has seen 9.8% growth in the Q2 of 2023.

Meta Platforms Inc.(META)

• Market Capital: $765.15 Billion
• Dividend Yield: 0.00%
• Share Price: $298.57
• 10-Year Avg Annualized Return: 24.15%

About the Company: Meta formerly known as Facebook is a social media giant. The company has acquired some of the widely used social media platforms such as Whatsapp, Instagram, Threads, etc. Also, the company is taking strides in the domain of Metaverse. As of now, Meta has been growing at an annual rate of 9.9%.

Accenture PLC (ACN)

• Market Capital: $199.02 Billion 
• Dividend Yield: 1.42%
• Share Price: $316.51
• 10-Year Avg Annualized Return: %17.2

About the Company: Accenture is an Irish-American multinational that specializes in IT services and consulting. The company provides a wide range of solutions for huge enterprises. It was founded in the year 1989 and is expected to have a growth rate of 2.51% in the third quarter of 2023.

Advantages of Investing in Tech Stocks

The past two decades have been dedicated to the IT industry. It is considering the fact that there have been way too many transformations in the computing world. From fast processors, huge cloud storage spaces to smartphones, the industry has truly revolutionized. In such instances, the idea to look for the best tech stocks to buy now in 2023 is a bright one. To further solidify this idea, here are some of the advantages of investing in tech stocks.

1. Collateral Returns

It’s not that every tech stock has broken the ceiling and gone too far in terms of results. However, if we see the entire picture, these tech stocks have always been on the rise. 

A majority of this credit can be given to the number of updates and upgrades the industry has gone through. In fact, in the year 2022, the tech industry contributed a GDP of approximately 2 trillion alone. In fact, there are tech stocks to invest in from companies like Alphabet, Meta, Tesla, etc. contributed around 34% of the S&P 500 market.

2. Exciting Innovations

This is a fact that every individual around the globe can vouch for. As mentioned earlier computing power, network equipment, cloud services, smartphones, and other IT devices have gone through a massive transformation. To further add, the efficiency of surviving in the market for a company in this domain relies on novel inventions. Therefore, the tech industry is always on a high rise, not overall (considering a few stocks might take a dip) but in totality.

3. Rapid Growth

The switch from dialer phones or landlines to mobile phones that were portable in nature to personal computers to laptops, the industry has seen rapid growth. It is a huge in the history of mankind. There was a time when companies had to install their own servers within their premises. However, now, there are cloud services that are available. Each of the statements mentioned earlier are facts that no one can deny. The sale of IT devices has increased tenfolds.

4. Numerous Opportunities

Considering the accelerated rate of inventions that happen within the IT domain, there are always massive opportunities that are there. Right now, there are so many opportunities surfacing such as 5G technology, Metaverse, artificial intelligence, etc. that can offer potential best tech stocks to buy now. 

In fact time and time again, there have been ample opportunities in the technology domain that one had to seize at the right time. To provide further perspective, bitcoin literally blew once the market got mature enough for the crypto sector, and there have been multiple other countless incidents. For instance, Amazon's share value has increased by 2000% in the year 1997 since the company went public. In fact, it is one of the best tech stock to buy now.

5. Valuations

Some of the richest organizations in the world are from the IT industry, thereby, making it safe for investors to invest in. It is important because the valuation of the company makes it capable of surviving even during hard times. Some examples of similar companies are written below:

• Microsoft Valuation: $2.609 Trillion
• Google Valuation: $1543.07 billion 
• Amazon Valuation: $1.324 Trillion
• Apple Valuation:$3.05 Trillion
• IBM Valuation: $126.71 billion

6. Long-term Investment Opportunity

IT industry possesses some of the safest long-term investment opportunities. With these companies sustaining themselves in this ever-changing market, the market capital for many of these companies has increased over time. This makes the tech industry a safe bet when it comes to purchasing stock options. Some examples of these similar best tech stocks to invest in would be Apple, Google, Amazon, Broadcom, etc.

7. Potential Dividend 

A dividend is the profit that is earned by a corporation and is shared amongst its shareholders. For instance, Broadcom has paid up to a 3% dividend yield. Dividend in hindsight is nothing but additional money that you can get from a share. However, a good dividend as per industry standards showcases its strength in its domain and goodwill. 

How to Buy Tech Stocks?

Somehow, there is an invisible rule that dominates the investment industry. The rule is “the higher the risk, the better the rewards”. Safe bets can bring in more money in the long run, however, for shorter sprints, the higher the risk, the better the reward. The situation is similar when you are searching for the best tech stocks to buy now. 

Therefore, it is essential that one knows how to purchase tech stock. So, we have provided some tips below that can help you find the best tech stocks to invest in.

To do so, first, you need to establish whether you want to day-trade or keep them as long-term investments.

Tips for Day-Trade:

• Figure out the industry in which you have the most amount of knowledge i.e. networking, hardware, cloud computing, etc.
• Now look for new tech companies to invest in that can provide a disruptive solution
• Create a list of these stocks to buy
• Setup a small budget for your investment portfolio
• Assess the list of the best options for tech stocks. This can be done by assessing the service they provide, the demand for the service in the market, and the fluctuation in their price
• Setup a baseline for the price of the stock or the percentage of growth. For instance, if a tech stock is valued at $5 and you expect it to jump to $8 then $8 would become a baseline. However, try to make the baseline realistic based on the past data.
• Hold the stock until it reaches the baseline, once it achieves the baseline, sell it.
• If the stock doesn’t reach the baseline, hold it and see its trend. If it doesn’t seem it’ll provide profit, sell it before it plummets.

The most crucial point to keep in mind in this scenario is that you don’t have to be greedy and emotional. When you are starting to trade, trade small. Learn how it is done and be in full control of your decisions.

Tips for Long-term Investment:

Below are some of the tips that one can use for long-term stock investment:

• Establish the amount of return you expect from your investment. It could be 15%, 20%, 30%, etc. However understand that the higher the return, the higher the risk
• Create a list of established tech companies
• Research and see what the products & services they are offering. This is simply to understand whether they have a potential future or not
• Setup a budget that you wish to invest in long-term
• After that create your personal list based on the yearly returns, share prices to buy multiple units, and dividends provided by the company
• Decide a holding time for the tech stock, and invest money

How to Find Tech Stocks Poised for Growth?

There are several basic attributes that one needs to check the growth potential of the best tech stocks to invest in. These are:

• Industry Sector: There are several sectors in the IT domain for instance blockchain, crypto, cloud, gaming, etc. Check if the sector has growth potential.
• Price to Earning Growth Ratio: This is the ratio between the price of the tech stock and its growth based on historical data. The lower the ratio is, the better the stock to invest in.

Risks of Investing in Tech Stocks

Despite the fact that there are several tech stocks to invest in with great return potential, the reality is that there are several risks as well. Below are some of the risks for you to assess. These would help you gain a better perspective while assessing new tech stocks to invest in and top tech stocks to invest in. 

Therefore, here we go…

• Tech stocks are volatile in nature which makes them amicable to constant fluctuations. This is due to multiple factors such as changing market sentiments, advancing technology, pressure from the competition, and change in preferences.
• Companies in the tech niche face constant disruption with new innovative solutions, therefore, a stock that is soaring high today can end up plummeting tomorrow.
• There is always the risk of compliance and legal regulations. For instance, GDPR (general data protection regulation) stops social media companies from aggregating user data.
• The majority of the time, the highest growth comes by figuring out new tech stocks to invest in. This is especially the case with day trading as established tech stocks are expensive and don’t move radically up or down in a short span. Although, it is risky as the returns are susceptible to a lot of fluctuations.
• There are times when tech stocks that are investible are overvalued. This can lead to a sudden change in the prices of the tech stock that goes downwards.
• Global tech companies are susceptible to geographical political tensions
• Numerous cybersecurity attacks and breaches occur on a daily basis that can hamper the strength of the stock

Wrapping Up!

Tech stocks are an essential ingredient of any portfolio. In fact, there are investors who primarily focus on this industry. However, before investing in tech stocks, it is essential to figure out the best tech stocks to invest in. One cannot simply pick the ones that reside on top as per the current market state. Instead, they need to carefully assess their requirement, find the best insights, and then later on invest.