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You will find a lot of companies are looking to move to a service-based approach rather than a product-based one. This is especially true as it relates to software companies. They charge customers an ongoing fee for using the software rather than a one-time fee. This can help the company by giving them predictable ongoing revenue.
Every hardware is powered by semiconductors. These semiconductor chips are made and manufactured to power the computation for all of the major hardware devices in the marketplace. You’ll find these chips in everything from automobiles to graphics cards to appliances.
Telecom companies are those that offer wireless services that are also a part of the technology sector. This is also true for the streaming companies that offer streaming content. This also includes any company that provides cloud-computing backend services and even cloud storage providers.
Here Are Some Of The Best Tech Stocks:
A lot of the more valuable companies in the global marketplace are tech companies. They are the companies that run the world because of the world’s increasing reliance on technology for day-to-day living. Because of this, you may want to stack some tech companies in your portfolio to take advantage of the growth potential and claim dividends from your paying agent at the end of the year. Here are some of the best of them.
1. Amazon (AMZN)
This is easily one of the best tech stocks you will find out there. Amazon is the number one Internet retailer and they also happen to be the biggest provider of cloud services to businesses. While Jeff Bezos stepped down this past year, there is plenty of growth potential on the horizon for Amazon.
2. Microsoft (MSFT)
Microsoft is another dominant player in the tech space. Microsoft is one of the companies that has been around the longest. However, their best days are still ahead of them. You will find Microsoft has a lot of growth potential. They are not only in the gaming industry, but they are also in the growing cloud-computing industry and they have Microsoft Azure which is the biggest competitor to Amazon’s AWS.
3. Apple (AAPL)
Apple is a well-known company for making some of the most in-demand consumer products in the world. They make and sell the iPhone, iPad, and even Mac laptops and desktops. They have established a lot of brand loyalty which allows them to charge premium prices for all of their hardware releases. They have since got into the services and streaming business too.
4. Intel (INTC)
Intel is one of the largest semiconductor producers in the marketplace. They have been manufacturing central processing units for a long time. They have dominated the space for years and years. They design and manufacture all of their chips and a lot of companies outsource the production. They are looking to begin manufacturing chips for other manufacturers shortly which makes them an attractive investment opportunity.
5. Cisco Systems (CSCO)
Cisco is one of the most dominant players when it comes to enterprise networking. You will find a lot of companies rely on Cisco more than any other company. There are no signs of them slowing down.
6. Netflix (NFLX)
Netflix has been and continues to be the dominant player when it comes to streaming content. While they do have a lot of competition entering the space and worries about the rising content production costs, they are still a safe bet having established a lot of loyalty and good retention numbers.
7. Facebook (FB)
Facebook is another name to look at. They are the largest social media company. Not only do they have their core business which is Facebook, but they have Instagram, WhatsApp, and Messenger. They are also heavily investing in Metaverse and VR technology.
8. Alphabet (GOOG)
Alphabet is the parent company of the everso popular search engine, Google. They have cloud services, their search engine, and the Android operating system.
All of these companies are typically referred together as FAANG stocks. They are a group of stocks that have core dominance in their respective industries and they’ve generated excellent returns over the last 5 to 10 years.
A good technology stock has a good valuation. You don’t want one that is trading at too high of a multiple. Look at the EPS to see whether or not it’s a good valuation to be buying at. While if you anticipate a large move to the upside, you can pay a premium, it’s best to buy when the stock is rather cheap comparatively.
You can always invest in an ETF that bundles all of the tech stocks together. One that does this is ARK Innovation ETF. Another would be QQQ.
While investing in technology stocks can be risky, as long as you diversify your portfolio and invest when the stocks are relatively cheap, you should see massive returns on your investment.
