The current company is the product of a 2016 merger between Broadcom Corporation and Avago Technologies. Perhaps best known as the parent company of Google, Alphabet was created as part of a 2015 restructuring. Google, its crown jewel and also predecessor, was founded in 1998 in Menlo Park, Calif., as a project led by Sergey Brin and Larry Page at Stanford University. In the beginning, Google was a humble search engine, but today it and its parent company have grown to become online advertising and web services behemoths. Apple was founded in Los Altos, Calif., by Steve Jobs and Steve Wozniak in 1976. From humble beginnings in Jobs’ family garage, Apple has grown into the most valuable public company on earth by market capitalization.

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Geoffrey Seiler is a contributing Motley Fool stock market analyst covering technology, consumer goods, healthcare, energy, and materials stocks. Prior to The Motley Fool, Geoffrey was a senior equity analyst at Raging Capital Management, a $600 million long-short hedge fund. If you’re new to investing, you’ll want to look for companies with a competitive edge, with the potential for growth and stability. Valuation is also important, where metrics like a stock’s price-to-earnings or price-to-book ratios come into play.

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Because many of KLA’s customers are based in Asia, there is some geopolitical risk if trade and export tensions continue to exist between the U.S. and China. Reported revenue for Lam Research’s quarter ending on December 29, 2024, was up nearly over 16%, with a healthy profit margin of 7%. One of the major cons of the stock is that it may have already reached its meteoric height, and the company’s debt-to-equity ratio is high. Applovin works with mobile application developers, mainly those within the gaming sector, to help them optimize their advertising dollars.

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• Investors who want to buy tech stocks can do so in a brokerage account or an individual retirement account (IRA)—and, in some cases, a 401(k).
• As you age, you want to turn more to bonds and cash holdings for stability and lower risk tolerance.
• Over the trailing decade through June 2025, tech stocks have been the best sector by a country mile, at 20.9% average annual returns.

Here are the top technology stocks with the highest growth, greatest value, strongest momentum, and most searches on Google. Tech companies in the S&P 500 average a dividend yield under 2%. Many of these companies forego dividends to reinvest in their future growth. Owning shares lets investors participate in gains from breakthroughs that shape the computing and internet products consumers use everyday. ASML is a Netherlands-based company that designs and manufactures the machinery used by companies that make microchips.

Moreover, revenue rose to $93.6 million over $70.8 million in the prior year. The perennially strong performer topped out at $214 in February 2020 and fell 80 points into March’s 52-week low. It completed a round trip into that peak in September and reversed, posting a higher low in October. The stock returned best tech stock to buy 2022 to resistance once again in November and has spent the past seven weeks grinding through the final stage of a cup and handle or symmetrical triangle pattern – take your pick. A breakout shows excellent upside potential, perhaps to the $300 level.

Best for diversifying into the health sector

• In fact, the ASML exec referenced above stated that the situation was “stressful,” implying that we may not get through this supply chain crunch for quite some time.
• In the fourth quarter of fiscal 2025, the Z-Flex program secured over $100 million in total contract value bookings, representing a 50% quarter-over-quarter increase.
• Investors may be able to achieve higher returns by investing in smaller firms, though that introduces the risk of determining how to pick the biggest winners.

However, it did buy Intel’s smartphone chipset business, presumably to someday offer a competing product. We asked three Motley Fool contributors to profile their top tech pick for the new year. Read on to see why they think Glu Mobile (GLUU), salesforce.com (CRM 0.55%), and Qualcomm (QCOM 1.71%) are on track to be huge winners. “Where we’re seeing the winners going forward will be those companies that are exposed to these faster growth trends,” says Lori Keith, who manages the Parnassus Mid Cap Fund.

Now with 40 million monthly users, Cash App has a long growth runway ahead of it. Square is seeking to complement its business with new features over time, such as Buy Now and Pay Later via Afterpay. But tech stocks can be tricky, often unprofitable, and innovation from competition remains a constant threat. Consider these five high-quality tech stocks enjoying « big picture » growth trends as potential building blocks for your portfolio. The company has been transforming itself under the leadership of Satya Nadella and is focussing on emerging and high-growth industries. The growing sales of personal computers amid the digital transformation also bode well for MSFT.

Research your tech assets carefully to learn how much they can grow over time. The supply chain hits everyone from semiconductor companies to cloud computing firms and everyone in between. Venture capital investment can pay for the supplies, but if those supplies never come, what next?

First, there’s the company’s products and their ability to innovate. He cited Apple’s iPhone as one example — the product sent the firm’s revenue through the roof. Plus, retail investors have less access to non-public data compared to institutional investors, he said. When the Covid-19 crisis first impacted the developed world, the one sector that enjoyed a serious upside catalyst was video games. With nothing better to do in terms of entertainment, many gamers wiled away the days turned to weeks through gaming endeavors. And I’m sure non-gamers who became bored out of their minds also joined in on the fun.

Investing

That makes it so big it can be difficult to avoid when investing. The company currently represents more than 6% of the S&P 500 by weight, meaning that just about any index fund you invest in will own shares in this tech giant. Chipmaker Nvidia was the best-performing mega-cap tech stock of the year. The shares soared 127% in 2021, pushing the company’s market cap to $741 billion, seventh highest among U.S. tech companies, behind the five Big Tech names and Tesla.

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