The Top Tech Stocks to Watch in 2023
As technology continues to advance at a rapid pace, investing in technology stocks can be a lucrative opportunity for investors seeking long-term growth.
The tech industry is ever-evolving, and staying up-to-date with the latest trends and emerging technologies can help you identify the best investment opportunities.
In this article, we’ll discuss the top tech stocks to watch in 2023 that can potentially provide high returns to investors.
Top Tech Stocks To Watch
Apple Inc. (AAPL)
Apple Inc. is a multinational technology company that designs, manufactures, and markets consumer electronics, computer software, and online services.
The company has a market capitalization of over $2 trillion, making it one of the most valuable companies in the world.
Apple’s main products include the iPhone, iPad, Mac, Apple Watch, and AirPods.
The company also offers various services such as the App Store, Apple Music, Apple TV+, and iCloud.
Apple has consistently been a top performer in the technology sector, and its stock has delivered significant returns to investors over the years.
In the past five years, the stock has returned over 200% to its investors.
With its strong brand, loyal customer base, and innovative product portfolio, Apple is expected to continue delivering strong returns to investors in the future.
Amazon.com, Inc. (AMZN)
Amazon.com, Inc. is an American multinational technology company that specializes in e-commerce, cloud computing, digital streaming, and artificial intelligence.
The company has a market capitalization of over $1.5 trillion, making it one of the most valuable companies in the world.
Amazon’s main products and services include Amazon.com, Amazon Prime, Amazon Web Services, Alexa, and Amazon Studios.
Amazon is a leader in the e-commerce industry and has a dominant market position in the online retail space.
The company’s cloud computing division, Amazon Web Services, is also a major player in the cloud computing industry.
Amazon’s stock has delivered impressive returns to its investors in the past five years, with a return of over 400%.
With the continued growth of e-commerce and cloud computing, Amazon is expected to remain a top performer in the technology sector.
Alphabet Inc. (GOOGL)
Alphabet Inc. is an American multinational conglomerate that specializes in internet-related services and products.
The company has a market capitalization of over $1.5 trillion and is the parent company of Google.
Alphabet’s main products and services include Google Search, Google Maps, Google Chrome, Google Drive, YouTube, and Android.
Google dominates the search engine market and is a leader in the online advertising space.
The company’s YouTube platform is also a major player in the digital video market.
Alphabet’s stock has delivered significant returns to investors over the years, with a return of over 140% in the past five years.
With the continued growth of the internet and digital advertising, Alphabet is expected to remain a top performer in the technology sector.
Microsoft Corporation (MSFT)
Microsoft Corporation is an American multinational technology company that develops, licenses, and sells computer software, consumer electronics, and personal computers.
The company has a market capitalization of over $2 trillion, making it one of the most valuable companies in the world.
Microsoft’s main products and services include Windows, Office, Xbox, Surface, and LinkedIn.
Microsoft is a leader in the personal computer market and dominates the operating system market with its Windows platform.
The company’s Office suite of software products is also widely used in the business world. Microsoft’s stock
CyberArk Software Ltd. (CYBR)
CyberArk Software Ltd. is a cybersecurity company that specializes in privileged access management solutions.
The company’s software and services protect against cyberattacks that target privileged accounts.
These attacks are particularly dangerous because they give the attacker control over the entire network.
CyberArk’s technology provides a layered approach to security that isolates and monitors privileged accounts, making it much more difficult for attackers to penetrate.
The company has a strong financial record and a solid growth outlook.
CyberArk’s revenue has been growing at an average of 24% annually over the past five years, and the company has a projected earnings growth rate of 20% over the next five years.
In addition, the company has a strong balance sheet, with no debt and a substantial cash position.
Intel Corporation (INTC)
Intel Corporation is a multinational technology company that specializes in the design and manufacturing of computer processors and other components.
The company’s products are used in a wide range of devices, from personal computers to data centers to autonomous vehicles.
Intel is a market leader in its industry and has a strong brand reputation.
The company’s financials are also strong, with a solid balance sheet and a history of profitability.
Intel has been paying a dividend for over 20 years, and the company has a history of increasing its dividend payouts over time.
The company’s revenue has been growing at an average of 6% annually over the past five years, and Intel has a projected earnings growth rate of 9% over the next five years.
Zoom Video Communications, Inc. (ZM)
Zoom Video Communications, Inc. is a video communications company that provides remote conferencing services.
The company’s software allows users to hold virtual meetings and conferences from anywhere in the world.
Zoom’s technology has become particularly relevant in the wake of the COVID-19 pandemic, which has led to a surge in remote work and virtual events.
Zoom has a strong financial record, with significant revenue growth over the past several years.
The company’s revenue has been growing at an average of 153% annually over the past five years, and Zoom has a projected earnings growth rate of 15% over the next five years.
However, it should be noted that Zoom faces significant competition in the video conferencing market, and the company’s stock price has been volatile over the past year.
Advanced Micro Devices, Inc. (AMD)
Advanced Micro Devices, Inc. is a semiconductor company that specializes in the design and manufacture of microprocessors, graphics processors, and other computer components.
The company’s products are used in a wide range of devices, from personal computers to gaming consoles to supercomputers.
AMD is a market leader in its industry and has a strong brand reputation.
The company’s financials are also strong, with a solid balance sheet and a history of profitability.
AMD has been paying a dividend for over 10 years, and the company has a history of increasing its dividend payouts over time.
The company’s revenue has been growing at an average of 33% annually over the past five years, and AMD has a projected earnings growth rate of 32% over the next five years.
Square, Inc. (SQ)
Square, Inc. is a financial services company that provides payment and point-of-sale solutions to businesses of all sizes.
Its products and services include Square Register, a point-of-sale system for retail and restaurant businesses, Square Terminal, a portable point-of-sale system for on-the-go payments, Square Capital, a financing program for small businesses, and Cash App, a peer-to-peer payment app for individuals.
In recent years, Square has expanded its offerings to include cryptocurrency trading and investing.
The company’s Cash App now allows users to buy, sell, and hold Bitcoin, and Square itself has invested $50 million in Bitcoin as part of its long-term strategy.
As of February 2023, Square has a market capitalization of over $100 billion and its stock has outperformed the broader market in recent years.
With its focus on innovative financial technology, Square is a promising tech stock to watch in 2023.
FAQs
What is a tech stock?
A tech stock is a stock issued by a company in the technology sector.
These companies are typically involved in developing or providing technology-related products or services, such as software, hardware, or telecommunications.
What are some of the risks associated with investing in tech stocks?
Tech stocks can be volatile, with their prices fluctuating rapidly in response to changes in market conditions or investor sentiment.
Additionally, some tech companies may be subject to regulatory or legal risks, such as antitrust investigations or intellectual property disputes.
How do I choose which tech stocks to invest in?
Investors should research companies’ financials, growth potential, and competitive landscape before investing in tech stocks.
Additionally, it may be helpful to consider the company’s leadership, innovation track record, and overall market trends.
Should I invest in established tech companies or newer startups?
Investing in established tech companies can provide more stability and potentially lower risk, while investing in startups may offer higher growth potential but also more risk.
Investors should consider their own risk tolerance and investment goals before deciding which type of tech companies to invest in.
How much of my portfolio should I allocate to tech stocks?
The appropriate allocation to tech stocks will depend on individual investors’ risk tolerance and investment goals.
As with any investment, it’s important to diversify your portfolio and avoid over-concentration in any one sector.
Conclusion:
Investing in technology can be a smart way to diversify your portfolio and potentially benefit from the growth of innovative companies.
In 2023, the top tech stocks to watch include Apple, Amazon, Microsoft, Alphabet, Cyberark, Intel, Zoom, AMD, and Square.
However, it’s important to keep in mind that investing in tech stocks comes with risks, and investors should carefully research and evaluate individual companies before making any investment decisions.
By staying informed and diversifying your portfolio, you can navigate the rapidly-changing technology sector and potentially profit from its continued growth.
