It’s no secret that tech stocks have faced a decline over the past couple of years. While some investors see this as a deterrent, others see it as an opportunity to capitalize on. Whether you’re new to tech investing or looking to get back into it, here’s what you need to know about the best tech stocks to buy.
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What Are the Best Tech Stocks To Buy Now?
These eight tech stocks are worth considering for your portfolio.
Alphabet
As a resident giant of the tech industry, Alphabet (Nasdaq: GOOGL) includes the entire plethora of Google services. Among 43 analysts following this stock in February, it has a consensus rating of buy.
Tesla
Elon Musk’s pride and joy Tesla (Nasdaq: TSLA) has been doing incredibly well lately as the electric car industry thrives. TSLA has a consensus rating of buy from 23 analysts in February.
Meta
Meta Platforms (Nasdaq: META), formerly Facebook, has been enjoying a recent rebound from its drop last year. This contributes to its consensus recommendation of buy from 58 analysts in January.
Nasdaq
This American financial corporation is mostly known for owning and operating three United States stock exchanges, including its namesake exchange. Nasdaq (Nasdaq: NDAQ) remains a consistently good buy, having already mostly recovered from last year’s drop, and earned a consensus buy rating from 13 analysts in February.
Western Digital
Western Digital (Nasdaq: WDC) is a staple in the world of data storage, including hard drives and solid-state drives. Its consensus rating from 29 analysts in February is buy.
Nvidia
Nvidia (Nasdaq: NVDA) is the world’s biggest manufacturer of graphical processing units. It has a consensus buy rating from 38 analysts in February.
Seagate Technology
Seagate (Nasdaq: STX) is a hard drive and storage supplier. Western Digital and Seagate together dominate this space, and both remain equally stable over the long term. Seagate has a consensus buy rating from 27 analysts in February.
Taiwan Semiconductor Manufacturing Company
TSMC (Nasdaq: TSM) was the first and is still the largest creator of chips in the world, currently holding over fifty percent of the market share. Only six analysts follow this stock in February, but it earned a consensus strong buy rating.
What Companies Are Considered Tech Stocks?
Any company that sells products or services in the technology sector is considered a tech stock. It’s a big sector, so there are a lot of companies to choose from.
Why Are Tech Company Stocks Falling?
In 2022, tech stocks in the S&P 500 stock market index fell ten percent more than the index as a whole. The war against Ukraine, fluctuations in wages for workers, rising interest rates and the looming fear of a recession all played a part in the dip.
Why You Should Invest
In this technology-heavy world, it’s unlikely that demand for the newest tech will drop in the long term. Despite seeing some numbers fall in the latter half of 2022, tech companies continue to march forward, and some of the best tech stocks may present a solid buying opportunity.
Does Warren Buffett Invest in Tech?
Warren Buffett, chief of Berkshire Hathaway, invested in tech stocks in a big way in 2022. Apple accounts for 40% of his stock portfolio, but in 2022, he also bought shares in Taiwan Semiconductor Manufacturing (TSM), Activision Blizzard (ATVI) and Paramount Global (PARA).
How a Tech Company Can Be Profitable
There are multiple models that a technology company can pursue in order to be profitable. It’s important to know what model a potential investment uses and how those types of models are doing in the current market.
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Licensing agreements
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E-commerce
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Cloud computing fees
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Monthly charge streaming services
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Hardware, including semiconductor chips
The more diverse the profit sources are, the more the potential for success.
Final Take
Technology stocks, while not the high-flyers they once were, can be solid long-term investments. The products and services they provide keep businesses running and have become irreplaceable in our personal lives. Despite some lows in the overall market going into 2023, this sector will continue to innovate and their stocks should provide solid returns over the long run.
Karen Doyle contributed to the reporting for this article.
Stock pricing is accurate as of market closing on Feb. 9, 2023. Information is subject to change.
This article originally appeared on GOBankingRates.com: 8 Best Tech Stocks To Buy in 2023
