What are the best Technology Stocks to invest in?
Nowadays, technology has become a sector full of opportunities, encompassing many core trends such as Artificial Intelligence, Blockchain, Smartphones, Autonomous Driving & Software, Internet, Streaming Services, etc.
The technology sector is so broad that gadget manufacturers, software developers, wireless service providers, semiconductor companies, cloud computing providers, and every company that sells a technology product or service belong to the technology sector. Technology is everywhere, it's part of almost every sector, so it's only natural that investors think about investing in technology.
Best tech stocks to invest
Many of the most valuable companies in the world are technology companies. The most dominant and impressive tech stocks that investors should consider when investing in technology are:
It is a leading online retail store and the leading provider of cloud computing infrastructure.
After founder Jeff Bezos resigned, the company opened a new chapter in its dominance of technology.
It is a dominant software company known for its Windows operating system and Office productivity software.
Microsoft is also the second largest provider of cloud infrastructure after Amazon.
Apple makes iPhones, iPads, and Macs. And the growing range of services ensures that Apple's stock continues to rise.
One of the world's largest semiconductor companies, Intel designs and manufactures CPUs for computers and servers and specialized chips for uses such as artificial intelligence.
Apple is betting big on manufacturing, with plans to make chips for other companies.
It is the dominant provider of enterprise networking hardware that forms the backbone of the Internet.
It is the best app in the video industry, spending billions of dollars each year on content only, to maintain an ever-growing subscriber base.
It is the largest social media company, bringing together 2 billion daily active users across Facebook, Instagram, Messenger, and WhatsApp, as the company sees virtual reality as its future.
Facebook, Amazon, Apple, Netflix, and Google are grouped as FAANG shares as their shares have delivered impressive returns over the past few years.
Artificial intelligence technology stocks
Many companies are using AI technology to take advantage of the ability of computers to simulate human learning.
Internet of Things stocks
The Internet of Things is a growing group of everyday things connected to the Internet, the shares of which are constantly growing.
Read also: Forex Glossary
What are the risks in investing in technology stocks?
As with any stock, there are always market and economic risks associated with investing in the stock market. In addition, some of the risks associated with the name of technology include:
- Product or service obsolescence, as technology is by nature a fast-moving business, constantly changing.
- Economic risks, as the economic slowdown can affect even high-performing technology stocks.
- The financial strength of the company, like any stock, the primary financial data of technology companies is essential. Is the company profitable? How are their balance sheets? Does it have enough cash flow?