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The technology sector is made up of companies that operate in the semiconductor, artificial intelligence (AI), software, hardware, and other information technology-related industries. This sector includes some of the best known and largest companies in the world, such as Microsoft, Google, Amazon and Nvidia.
Tech stocks, which are broadly represented by the Invesco S&P 500® Equal Weight Tech (RYT) ETF, have largely outperformed the market, with RYT providing investors with a 38.67% return over the past 12 months. higher than the S&P 500. total returns of 31.13%.
Here are the top tech stocks with the highest growth, greatest value, strongest momentum, and most searches on Google.
Overview: Technology stocks
From 2007 to 2017, the tech industry grew from $65.2 billion to $263.6 billion. However, this phenomenal growth in the technology sector is not without its risks. Innovations constantly cause disruptions in the market. For example, in 2007 the introduction of the iPhone created many new businesses and ruined others. This has evolved the tech industry into what it is today.
This sector offers more than solid mega-cap stocks and household brands like Amazon. The technology sector niche includes companies of all sizes, including start-ups. You need to do your research to successfully invest in tech stocks.
Best Online Brokers for Tech Stock
A good online broker can make tech stock investing and trading more efficient and can help you become more successful. Here are some great online brokers you should consider.
Features To Look For In Tech Stocks
- Profitability: By far the best way to determine if you should buy a particular stock is to fully understand if it can generate a profit. Look at its profitability ratios to see how it compares.
- Total Addressable Market (TAM): The Total Addressable Market (TAM) reveals the maximum amount of money a company can make in a selected market – provided a company has 100% of the market share.
When a business is in the process of launching a new product, a new customer segment, or plans to sell an existing product to customers, you want to assess the potential growth capacity of the business.
- Income: Look at a company’s operating and non-operating revenue and what technology companies earn from their core business (operating revenue) and one-time business activities (non-operating revenue). You’ll need to consider both carefully before pulling the trigger on a tech title.
Putting tech stocks into perspective
The technology sector may attract you with its stability and growth potential. Investigate the potential of tech stocks to expose yourself to lucrative returns.