In today’s digital age, tech stocks are an exciting and increasingly lucrative investment option. Especially with the proliferation of new advancements and technologies, investing in technology stocks has never been more attractive. The best tech stocks have the potential to have a tremendous influence on the global economic landscape, as well as return substantial gains for the investor. Whether you’re a tech enthusiast, lifelong investor, or simply looking for something to add to your portfolio, here are the best tech stocks you should consider in 2021.
What are Tech Stocks?
Often known as information technology stocks, tech stocks refer to shares of companies calling the tech industry its home. This encompasses organizations involved in the research, development, distribution, and production of any number of high-tech goods and services. From hardware like computer equipment to software companies offering cloud-based services, tech stocks come in all shapes and sizes.
Due to the sheer magnitude of the tech industry, tech stocks can range from tech-oriented giants like Apple and Microsoft, all the way to penny stocks in more niche areas of the space. Different types of tech stocks can perform well in different macroeconomic climates, so it’s important to pick a great candidate for you.
The Benefits of Investing in Tech Stocks
There are many benefits to investing in tech stocks. With the tech industry showing no signs of slowing down, tech stocks usually have high returns and solid long-term growth potential. Similarly, tech stocks are also expanding into new markets and helping to drive innovation across many industries. Not to mention, this is an area of the market that many are very familiar with thanks to the rise of technology within our daily lives.
Best Tech Stocks to Invest In 2021
- Apple
Apple often remains at the top of the list of best tech stocks to invest in and shows no signs of slowing down in 2021. This is due to the long track record of strong performance and innovation that Apple has successfully managed over the years. Their portfolio of products, from devices to services, have enabled them to dominate the tech industry and generate huge returns for investors.
- Microsoft
Coming in second on the list is global technology giant, Microsoft. Whether you’re investing in their operating systems, cloud computing services, productivity tools, video games, or their array of other products, Microsoft is almost a guarantee for success. As one of the pioneers of the tech industry, Microsoft has been a leader in computer hardware, software and all other technology needs for decades.
- Amazon
One of the titans of the tech industry, Amazon has been a juggernaut since its inception, and continues to deliver amazing results for investors. Amazon is currently the world’s largest online retailer and remains at the top of the list of tech stocks to consider in 2021. Especially with their transitioning into e-commerce and cloud computing leadership, Amazon is only continuing to rise as one of the best tech stocks to invest in.
Long-time staple of the best tech stocks, Facebook remains one of the most sought after investments in the market. As one of the world’s largest and most successful social networks, Facebook has been providing strong returns to its investors since it first opened its doors and shows no sign of slowing down. With a strong foot in both the social media and advertising industry, Facebook will remain a great investment for 2021.
- NVIDIA
Next in line for the best tech stocks to invest in is computer hardware giant NVIDIA. NVIDIA has been leading the industry for many years and is still a great candidate for the upcoming year. Nvidia’s computing hardware solutions have been instrumental in driving many advancements in artificial intelligence, gaming and a host of other technologies.
- Adobe
The final entry on the list of best tech stocks is Adobe, one of the stalwarts of the computing industry. Adobe provides an array of software solutions and cloud-based services with a wide range of uses. Their strong presence in the creative design, photography, editing and other creative industries makes them one of the top options for tech investments.
Important Questions to Ask When Investing in Tech Stocks
When investing in tech stocks, there are a few key questions you should ask yourself before making a move.
• What is the company’s competitive advantage?
• Does the company’s market share look promising?
• How is the company securing their products and services against fierce competition?
• Is the company focused on innovation, or are they lagging behind the competition?
• How have the company’s earnings and stock performance looked over the past 3-5 years?
• Does the company have any liabilities that could hamper future success?
When it comes to tech stocks, there are a lot of great options. Each one carries certain advantages and disadvantages, and which one is a great investment depends heavily on your own preference. Therefore, it’s important to do your research and be sure that the company you invest in is the right fit for you. With the right research and insight, tech stocks can be a great way to diversify your investments and reap some of the rewards of the technology industry.
