7 Best-Performing Tech Stocks for May 2023

Goldman Sachs on Feb. 14 initiated coverage with a buy rating and price target of 73. When new institutional money starts to come in from the sidelines, the best stocks to buy and watch could easily resume their market leadership, helped in part by strong fundamentals. The best stocks to buy and watch aren't guaranteed to be huge stock market winners. https://trading-market.org/best-tech-stocks-to-buy-in-2021/ But they do have qualities seen in past stock market winners before big price gains. Alphabet, for example, manufactures devices like phone and home assistants while also offering its Google search engine and a full suite of online productivity tools. NVIDIA was founded in 1993 to produce graphic cards for the burgeoning personal computer market.

Offering premier intelligent technology for automotive, industrial, and 5G cloud power, ON Semiconductor is paving the way for global lighter and longer-range systems. With tremendous earnings growth, EPS, and fundamentals, consider this stock for a portfolio, especially as it trades at a discount. In addition to being one of the best tech stocks to buy, Fortinet is also one of the best AI stocks to watch going forward. The company has continued to invest aggressively in cutting-edge technologies like artificial intelligence. This is the role of Fortinet FortiGuard Labs, whose systems analyze over 100 billion events daily for real-time threat intelligence.

Taiwan Semiconductor Manufacturing Company

FTNT traded sideways from there while holding support at its 21-day exponential moving average. The strength and support after the gap up resulted in a bullish move above its mid-February high of 63.02. The best tech stocks to buy and watch now include Impinj, Mobileye, ServiceNow (NOW), Fortinet (FTNT) and Workday (WDAY). The best stocks to buy and watch aren't hard to find, as long as you're fishing in the right pond.

That’s not to say the stock can’t go lower in the near term, but rather that the risk/reward profile is incredibly attractive at the moment. In the event Boeing is able to execute on all of its promises, there’s no reason to think it’s not one of the top 10 best stocks to buy now. Despite the temporary boost to share prices, Disney’s 2.04 price-to-earnings growth multiple still trails the industry median of 3.80x. At its current valuation, Disney isn’t a cheap stock, but it is much more affordable on a relative basis. Alphabet has such a surplus of cash, in fact, that it recently announced a $70 billion repurchase plan to buy back its own shares. If the company can simply maintain its current cash flow levels, it can replenish the money spent on the buyback in as little as five quarters.

Tech Stocks

The advantage of ETFs is they usually have lower expense ratios than mutual funds and don’t require a minimum investment. Depending on your risk profile, you might not be able to stomach your investments dropping 12% on a bad day, which is exactly what happened to tech stocks in March 2020. The fintech company SoFi Technology sought to revolutionize the way consumers bank. Many investors had high hopes for it.Yet SoFi stock fell on Tuesday — and eventually halted the trading of shares — after the early accidental release of its first-quarter results. Although ETFs give you broader exposure to the tech market as a whole, owning the best technology stocks individually offers savvy investors a better chance at making more money than by simply looking into ETFs.

ServiceNow's (NOW (opens in new tab), $455.22) Now platform allows companies to digitize their operations and connect silos. Just some of the use cases include security, customer service, IT management, employee experience, procurement and risk management. The Now platform also leverages AI and process mining to optimize the workflows. The real-time streaming market is a new category, whose origins go back to 2008.

Perhaps even more importantly, management expects its customer base to grow to 249,173 by the end of the first quarter in 2023. Responsible for 20% of Harmonic's growth figures, HLIT's video segment is a money-maker, along with its underlying SaaS +69% Y/Y, Cable Access, which produced $81.2M in revenue or +62% Y/Y. Tremendous results have led to a rise in full-year 2022 EBITDA guidance and six analysts' FY1 Upward revisions over the last 90 days. By staying at the forefront of the market, Harmonic continues to meet consumer demand while trading at a relative discount.

So this year’s underperforming stock could well become a darling again next year. For instance, as of May 5, 2023, the technology sector traded at 23 times earnings. By comparison, the energy and financial sectors had price-to-earnings (P/E) ratios of about 6 and 9, respectively. The Fed will likely lower interest rates then, which spurs consumer demand and reduces technology companies' borrowing costs. For example, the technology bull market between 2009 and 2021 coincided with an annualized historically low inflation rate of 1.7%.

I/O Fund is a Top-Performing Tech Portfolio

This is when LinkedIn employees Jay Kreps, Jun Rao and Neha Narkhede created Apache Kafka, an open-source project. It helped deal with the huge amounts of data that needed to be processed. The stock now trades at about $76, although it is off its 52-week low of $44.

Johnson & Johnson’s resilience was recently put on display when the company announced its third-quarter earnings report. Shares rose the day results were announced, as optimism about the company’s future appears to be contagious. Despite the inflationary economy serving as a headwind, revenue increased nearly two percent to $23.79 billion.

Which Are the Best Stocks to Buy for Beginners?

Eventually, you might even be able to piece together several whole shares of stock by sticking to the course and buying fractional shares on a regular basis. These fractional shares can build up over time or sold like normal stock. If this sounds like your situation, where you don’t have a ton of money saved but would still like to get your hands on some prime blue-chip stocks, you’re in luck. Instead, purchase a stock of a company that is likely to increase in value over time, regardless of what you might be hearing about the company in the news or from friends.

Wall Street has already turned its back on the high-growth technology stocks that have soared since the beginning of the pandemic. The tech-heavy Nasdaq, for example, has dropped approximately 1,939 points since topping out in the third quarter of last year. The decline has been fairly steady, as investors appear more inclined to favor safer stocks with better valuations. Not unlike Snowflake, CrowdStrike is another tech stock realizing significant growth at a time when tech stocks usually retreat. However, CrowdStrike is easily outperforming the NASDAQ, and for good reason.

The gross margins are at a juicy 90% and there are positive operating cash flows. The PC market experienced a renaissance, with sales volumes rising to the highest levels in a decade and ending a long streak of declines. Working and learning from home, combined with stimulus cash, helped fuel the boom. Global PC shipments were down 16% in 2022, with a miserable 29% year-over-year decline in the fourth quarter. Another big decline is likely in 2023, which will put pressure on many of Microsoft’s products that are tied to the PC.

Technology stocks are perennially one of the hottest areas of the stock market. Investors closely follow this sector because of its track record of scorching returns and the potential for more in the future. So it can be worth keeping an eye on tech stocks and tracking the hot performers. First, consumers and businesses will have less income to buy products and services, which has an effect of slowing corporate earnings. Second, technology companies borrow heavily to fund startup costs, patents, and innovation expenses, and the cost of servicing that debt increases when interest rates rise. A rising interest rate environment isn't good for the best stocks to buy in the tech sector with high multiples.

Recent performance has been admirable, especially in the face of several macroeconomic headwinds. As a result, ServiceNow is profitable by GAAP (generally accepted accounting principles) and non-GAAP valuations. In fact, it’s ServiceNow’s profitability which makes it one of the best stocks to buy for 2022 and 2023. While most cloud-based software is nowhere near profitable, ServiceNow is making money and growing margins. The company’s profitability will simultaneously help it weather today’s inflationary economy and establish a foundation for years of growth.

• This is because well-established tech companies such as Google and Microsoft that boast solid fundamentals have also proven their ability to maintain leadership in their markets.
• "Three years later, it's much closer to their vision than everything on public cloud," Foresman said.
• Contrarily, many growth stocks saw aggressive sell-offs between February and May.
• Although the firm acknowledged that US stocks currently appear to be building technical momentum, it's still urging caution right now.
• These headwinds included a Fed intent on aggressively raising interest rates to bring down stubbornly high inflation.
• Distribution days have started to crop up in the Nasdaq, but there haven't been any on the S&P 500 since the March 29 follow-through day.

Apple accounts for 42% of his stock portfolio, but in 2022, he also bought shares in Taiwan Semiconductor Manufacturing (TSM), Activision Blizzard (ATVI) and Paramount Global (PARA). Any company that sells products or services in the technology sector is considered a tech stock. 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. And if you’re interested in technology stocks and want to go the fund route, you can consider tech-focused ETFs, mutual funds and index funds.