The technology industry is at the forefront of global innovation, with a market capitalization that surpassed $14 trillion in 2023, making it one of the most dominant sectors worldwide . From driving advancements in artificial intelligence to revolutionizing cloud computing, tech companies are not just changing how we live—they’re fundamentally transforming entire industries. For investors, the allure of tech stocks is hard to ignore; they represent a significant portion of the S&P 500, accounting for approximately 28% of its total value in 2024.
For investors, tech stocks offer a chance to be part of this ongoing revolution, but with so many players in the field, finding the right ones can be a challenge. To help make that easier, we’ve put together a list of top tech stocks that stand out for their solid financial performance and strong growth potential. These are the companies you’ll want to keep an eye on as they continue to shape the future of technology.
Methodology: How Did We Choose These Stocks?
We used InvestingPro to filter out the best tech stocks based on a few key criteria. We focused on companies within the tech industry, making sure they’re leaders or rising stars in their fields by assessing:
Market Cap: Only companies with a market cap over $1 billion made the cut. This ensures we’re looking at established businesses with a solid market presence.
EPS Growth: We required each company to have an EPS growth of more than 20%. This shows that these companies aren’t just doing well – they’re growing fast and have the potential to keep that momentum going.
By following this criteria, we’ve identified tech stocks that are not only financially strong but also poised for significant growth in the coming years.
Top Tech Stocks
Market Cap: $65.461B
EPS Growth: 86.4%
Dell Technologies Inc. is a multinational technology company that offers a broad range of products and services, including personal computers, servers, storage devices, and IT infrastructure solutions. Dell is known for its innovative technology and customer-centric approach, serving businesses of all sizes and industries around the globe.
Market Cap: $29.791B
EPS Growth: 79.7%
Super Micro Computer Inc. specializes in high-performance, high-efficiency server technology and innovation. The company designs and manufactures servers, storage systems, and networking solutions, primarily catering to data center, cloud computing, enterprise IT, and big data applications.
Market Cap: $22.536B
EPS Growth: 76.3%
Hewlett Packard Enterprise Co. focuses on providing enterprise-level technology solutions, including servers, storage, networking, and cloud computing services. The company supports digital transformation initiatives for organizations, helping them manage and secure their IT environments.
Market Cap: $20.238B
EPS Growth: 162.7%
Seagate Technology PLC is a leading provider of data storage solutions, including hard disk drives (HDDs) and solid-state drives (SSDs). Seagate’s products are integral to data management and storage for personal computing, enterprise, and cloud environments.
Market Cap: $19.487B
EPS Growth: 68.4%
Western Digital Corporation is a major player in the data storage industry, offering a wide range of products such as HDDs, SSDs, and data center systems. The company is known for its innovation in data storage technology, catering to both consumer and enterprise markets.
Market Cap: $18.434B
EPS Growth: 420.5%
Pure Storage Inc. specializes in providing all-flash storage solutions that help organizations maximize data storage efficiency and performance. The company is recognized for its cutting-edge technology and commitment to simplifying data storage management for enterprises.
Market Cap: $1.422B
EPS Growth: 511.8%
Diebold Nixdorf Inc. is a global leader in the financial and retail technology sectors, providing software, services, and hardware solutions, particularly for automated teller machines (ATMs) and point-of-sale (POS) systems. The company supports the modernization of banking and retail industries.
Market Cap: $1.238B
EPS Growth: 47.7%
Xerox Corp is a renowned provider of print and digital document solutions. The company offers a range of products and services, including printers, copiers, and workflow automation software, aimed at enhancing productivity and efficiency for businesses of all sizes.
How to Find Tech Stocks
You can find the best tech stocks easily using Investing Pro. Here are the steps:
- Click on the Screener tool.
- Select ‘Industry’ as a filter parameter on the Screener page, and select ‘Technology Hardware, Storage & Peripherals’
- Add a filter for ‘Market Cap’ above 1 billion
- Add a filter for ‘Basic EPS Growth’ greater than 20%
- You can then see the list of all the companies falling in the desired screener filters’ range arranged in a descending order.
Tech Stocks FAQ (Frequently Asked Questions)
1. What Are Tech Stocks?
Tech stocks are shares of companies in the technology sector, which includes businesses that develop, manufacture, or provide technology-based goods and services. These companies often operate in areas like software, hardware, semiconductors, internet services, artificial intelligence, cloud computing, and more.
2. Why Invest in Tech Stocks?
Investors are often attracted to tech stocks because of their potential for high growth. The technology sector has been a driving force behind innovation and economic growth, making it a popular choice for investors seeking strong returns over time. However, tech stocks can also be volatile, so they may carry higher risks compared to other sectors.
3. What Are the Risks Associated with Tech Stocks?
Tech stocks can be highly volatile due to factors like rapid changes in technology, regulatory challenges, competition, and market sentiment. Additionally, tech companies often reinvest profits into growth rather than returning them to shareholders through dividends, which can increase risk.
4. What Are Some Popular Tech Stocks?
Some of the most well-known tech stocks include companies like Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Tesla (TSLA). These companies are leaders in their respective fields and have a significant impact on the tech industry and the broader economy.
5. How Can I Invest in Tech Stocks?
You can invest in tech stocks through individual stock purchases or by investing in exchange-traded funds (ETFs) or mutual funds that focus on the technology sector. Many online brokerage platforms allow investors to buy and sell tech stocks easily.
6. What Is the Difference Between Growth Stocks and Value Stocks in the Tech Sector?
Growth stocks are companies expected to grow at an above-average rate compared to the broader market. These companies often reinvest earnings into expansion and innovation. Value stocks, on the other hand, are companies that are considered undervalued based on metrics like price-to-earnings ratio, offering potential for stable returns. In the tech sector, growth stocks are more common.
7. Is Now a Good Time to Invest in Tech Stocks?
The right time to invest in tech stocks depends on your investment goals, risk tolerance, and market conditions. While tech stocks have historically delivered strong returns, they can also experience significant volatility. It’s important to conduct thorough research or consult with a financial advisor before making investment decisions.
8. What Are Some Emerging Trends in the Tech Industry?
Emerging trends in the tech industry include advancements in artificial intelligence (AI), machine learning, blockchain technology, quantum computing, cybersecurity, 5G technology, and the Internet of Things (IoT). These areas have the potential to drive future growth in the tech sector.
9. What Are the Differences Between Big Tech and Smaller Tech Companies?
Big Tech companies, often referred to as the “FAANG” stocks (Facebook, Amazon, Apple, Netflix, Google), are large, established firms with significant market influence. They often have stable revenue streams and large customer bases. Smaller tech companies, including startups, may offer higher growth potential but come with greater risks due to their less established business models.
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