Best Tech Stocks to Add in Your 2023 Watchlist

Tech stocks have been some of the best investments in recent years but after their strong performance, these stocks have recently suffered a setback. Concerns about supply chain constraints, inflation, geopolitical factors, and a tightening economy have prompted a shift away from large growth stocks towards conservative value stocks.

A growth tech stock is exactly what it sounds like: the stock of a rapidly growing tech company. Tech stocks are often overpriced based on valuation metrics, and the companies aren’t always profitable. What makes tech stock highly valuable is due to the company’s ability to rapidly increase revenue.

The best tech stocks come from companies that are building the future.
The best tech stocks come from companies that are building the future. (Photo:
  1. Amazon
    Amazon, the e-commerce and cloud computing tech giant, is the leading tech stock today. With over 200 million paying Amazon Prime members and an unrivaled selection of products and shipping speeds, the company dominates online retail. More than half of all items sold come from third-party sellers who pay Amazon hefty fees to gain access to Amazon’s massive customer base.

What is even more impressive is the cloud computing industry. Amazon Web Services (AWS) is the leading provider of public cloud infrastructure and is extremely profitable. Over the last year, the company generated approximately $65 billion in revenue and is still growing at a high-speed rate.

  1. Microsoft
    Microsofthas benefited from the COVID-19 pandemic. Microsoft Windows remains the most popular PC operating system, Microsoft Office remains the most popular productivity suite, and Microsoft Azure is the world’s second-largest cloud computing provider.

Furthermore, Microsoft’s gaming and device businesses are expanding rapidly. With Microsoft Teams, the company competes with Slack and Zoom in the online collaboration and videoconferencing markets.

Read More:Top 3 Stocks to Consider Buying This 2023

  1. Nvidia
    Nvidia creates graphics processing units (GPUs), which include chips and are in high demand for a variety of reasons. NvidiaGPUs are purchased by computer gamers in order to enjoy higher-quality graphics and improved console performance. Customers in data centers purchase Nvidia GPUs to accelerate workloads, particularly artificial intelligence (AI) workloads. Miners of certain cryptocurrencies purchase Nvidia GPUs for their processing power.

A global chip shortage, combined with a surge in cryptocurrency prices, resulted in a severe shortage of graphics chips, driving up prices and making inventory increasingly scarce. Nvidia is reaping the benefits. Revenue increased by 53% in the most recent quarter, with significant growth in both the gaming and data center segments.

  1. Adobe
    Adobe is breaking records in tech stocks. In 2021, sales increased by 23% to $15.79 billion, the highest annual sales in the company’s history. With a net income of $4.82 billion for the year, Adobe earned an incredible amount of profit from its sales. It extended its lead into 2022 with strong first-quarter results.

Adobe’s main line of business is creating software. Photoshop, Illustrator, Premiere Pro, and a wide range of other creative software products are produced by the company. Adobe’s products are frequently regarded as the industry standard. Although there is competition, none of it poses a significant threat to Adobe’s position.

  1. is the market leader in cloud-based customer relationship management applications for sales, marketing, and other purposes. Salesforce’s software-as-a-service (SaaS) plays an important role in assisting businesses of all sizes as they shift to digital and omnichannel customer relationships.

Sales at the company continue to grow rapidly, increasing by about 25% last year. Furthermore, the operating margin has increased to around 18.7%. Revenue growth is expected to slow to around 20% this year, but operating margins will rise to 20%. The trend is expected to continue for the foreseeable future, with revenue expected to exceed $50 billion in fiscal 2026, nearly doubling from the previous year.

  1. Meta Platforms
    At the end of 2021, Facebook changed its name to Meta Platformsto reflect its shift toward the metaverse. While the metaverse represents a significant growth opportunity for the virtual reality (VR) hardware leader, digital advertising remains its core business.

Despite this, Meta’s massive user base of nearly 3 billion people across its family of apps (Facebook, Instagram, Messenger, and WhatsApp) makes its ad platform appealing to both small and large businesses. In addition, the company is pushing social commerce solutions to improve ad measurement and performance on its platforms in the face of privacy restrictions.

Bottomline is Buying Tech Stocks:

Keep in mind that pricey tech stocks frequently have much higher volatility. Massive stock price declines are common in fast-growing tech stocks, and it can take an iron will to endure those declines without panicking.

Over time, tech stocks can provide outsized returns, and the best growth tech stocks can provide life-changing returns. However, choose wisely to avoid the pitfalls of growth investing.

Read More: Amazon Stock: Is It Still a Good Buy in 2023?


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