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Top 10 tech stocks to watch

Learn about some of the biggest tech stocks in the world and which ones to keep an eye on. In this guide, we compile a list of the best 10 tech stocks based on market capitalisation, revenues, and potential growth for the future. Find out which equities are potentially some of the best tech stocks to watch, as well as what each company does, what factors affect share prices, and how to buy some of the biggest global and US tech stocks. Figures displayed below are of each company’s market capitalisation at the time of writing.

This information is up to date as of May 2022. Please note that past performance is not a reliable indicator of future results.

Apple (AAPL) – $2.3tn

Founded in the US by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1977, Apple is the largest company in the world and one of the top US tech stocks based on revenues. The company sells consumer electronics products, such as computers, smartphones, tablets, watches and headphones. Some of its flagship products include the iPad, iPhone, AirPods, iMac, and MacBook.

The multinational business also creates its own operating systems, such as macOS, and offers streaming and entertainment services, such as Apple Music, Apple TV, Apple News, and Apple Arcade, which are payment and subscription services for accessing content. It was the first company in the world to surpass a trillion-dollar market capitalisation in 2018, as well as the $3tn mark in 2022.

Microsoft (MSFT) – $1.9tn

Founded in 1975 by Bill Gates and Paul Allen, Microsoft is best known for creating and distributing the Windows operating systems for personal computers. The company’s other software products include Office, Exchange, Teams, Outlook, Skype, the search engine Bing, and the social network LinkedIn.

It also offers database and server services to business clients. Microsoft also has its own line of Surface computers and makes the Xbox gaming console.

Alphabet (GOOGL) – $1.5tn

Founded in the US by Larry Page and Sergey Brin in 1998, Alphabet is best known for its Google search engine, yet it also operates in other segments. Through Google, it offers advertising and information services through YouTube, Android devices, Google Maps, Google Play and the Chrome web browser.

The company also provides hardware, such as Chrome Book computers. In its software segment, Google Cloud provides businesses with infrastructure, data software and tools. Other Bets is a division that houses the company’s riskier subsidiaries such as TV services, research and development, and licensing.

Amazon (AMZN) – $1.1tn

Founded in the US by Jeff Bezos in 1994, Amazon runs Amazon.com, an online retailer and marketplace that allows third parties to sell their goods directly to consumers. The company also sells its own products on the ecommerce website and has been one of the best US tech stocks to buy over the last decade based on share price increase.

Amazon’s own products include the Kindle e-reader, Fire tablets, Fire TVs, Ring home security products, and the Echo smart speaker. It also offers publishing services through Kindle Direct Publishing, where authors can publish their works for sale on the Amazon Kindle platform.

Amazon Web Services (AWS) is a separate division of the business that offers cloud computing, web hosting, data storage, and advertising, among other business services. The Amazon Prime membership programme provides access to streaming music, movies, shows, and original Amazon content, as well as free delivery for products ordered on its website. Amazon Music is its subscription service for music.

Tesla (TSLA) – $745bn

Founded in the US by Elon Musk in 2003, Tesla operates in two sectors: automotive and energy generation and storage. The auto division manufactures electric cars that it sells and leases. It then also offers chargers for the vehicles, apps, financing, warranties, extended services plans, technician services and insurance. One of its main profit generators is selling automotive regulatory credits. These are free credits Tesla gets from governments for producing non-fossil burning cars. They sell the credits to other companies.

The company’s energy generation and storage business specialises in solar power. It manufactures and then sells, as well as leases, solar panels. Tesla then provides repairs, financing and warranty services. Since the company isn’t only a car company, it changed its name from Tesla Motors to Tesla in 2017. It was one of the best tech stocks in terms of performance in 2020, rallying more than 700%.

Meta (FB) – $516bn

Founded in the US in 2004, Meta Platforms is the owner of multiple social media platforms, including Facebook, Instagram, Messenger and WhatsApp. These networks allow users to interact and share information through multimedia. The networks are available on computing and mobile devices.

The connection of social media extends into the company’s Oculus hardware, which provides a virtual reality environment where users can interact, experience entertainment and play games. This division of the company is known as Facebook Reality Labs. The company underwent a name change in 2021 from Facebook Inc to Meta Platforms.

Taiwan Semiconductor Manufacturing Company (TSM) – $456bn

Founded in Taiwan in 1987, TSM manufactures and sells semiconductors and integrated circuits, also known as microchips, around the world. Its microchips are used in a wide range of consumer and business technologies, including computers, communication devices, video games, radios, and TVs. Apple, for example, uses TSM chips and is one of the company’s larger clients. The stock trades on both the New York and Taiwan Stock Exchange.

Tencent (TCEHY) – $429bn

Founded in China in 1998, Tencent’s business is seen as being the Asian equivalent of Meta (Facebook). Tencent provides social networks, messaging, online entertainment, online games, advertising and ecommerce.

Popular products include WeChat and QQ. Tencent is also a venture capitalist firm, having invested in over 600 companies. It was also the first Asian company to surpass the $500bn market cap and is one of the largest video game vendors in the world.

Nvidia (NVDA) – $396bn

Founded in the US in 1993, Nvidia designs graphics chips that are found in many of the world’s computers. The company’s Graphics division provides graphics cards for regular and gaming computers. Its chips are also used in gaming consoles, streaming services and virtual reality hardware.

The Networking division of the company provides data centre platforms and autonomous driving development, among many other services, to business clients. Most retail clients don’t interact directly with Nvidia. Rather, the company has agreements with computer manufacturers around the world. Its chips are built into everyday consumer and business technology products.

Samsung (5930.KS) – $349bn

Founded in South Korea in 1938, Samsung is one world’s biggest producers of smartphones and televisions. The company’s products are also used in many computers, as it is one of the world’s largest producers of DRAM and NAND memory. It also produces and sells solid-state drives (SSDs), microchips, refrigerators and other appliances. It is listed on the Korean Stock Exchange as well as the over-the-counter (OTC) market in the US.

What factors move the price of tech stocks?

  • Much of a tech stock’s price is based on the current financial situation and future expected financial situation of the company. If a company is expected to grow and increase its sales and earnings, this is attractive to buyers, and thus they are willing to pay more for the stock compared to a similar company that isn’t expected to grow. Fundamental analysis looks at a company’s underlying financial performance to assess if the stock’s value is attractive.

  • Supply and demand of the stock itself also plays a role. If there are fewer sellers and lots of buyers, then the buyers may be willing to pay higher prices which pushes the price up. If there are lots of sellers and fewer buyers, those that want out may sell at lower prices. Thus, the price drops. Technical analysis looks at how stock prices move in an attempt to predict when it is a good time to buy and sell.

  • The above factors play out on all time frames, with fundamental and technical traders analysing market conditions, trying to assess good times to buy and sell based on these factors. Traders rely on investing strategies​ to tell them when to make their moves. Passive investors​ don’t tend to worry about the short-term ups and downs and instead hold for the long-term.

How to buy tech stocks

  1. Study how to invest in stocks​ to help decide what you are going to buy.
  2. Fund a trading account with a broker that allows you to purchase shares.
  3. Carry out fundamental analysis, including P/E and EPS ratios, for a better understanding of how investing works in the stock market.
  4. Don’t forget to consider your risk-management strategy before jumping into an investment, and how much capital you’re willing to invest and potentially lose.
  5. Consult other sources of information and guidance to get a wider perspective on the market, such as reputable sources like Bloomberg and the Financial Times.

FAQs

Are tech stocks overvalued?

Tech stocks generally carry a high valuation compared to other stocks because of the growth potential. There is no specific metric that says whether stocks are overvalued (and likely to fall) because a high price (relative to current earnings) may be justified based on the future growth potential.

What are some of the best new technology stocks?

GlobalFoundries (GFS), Informatica (INFA), Confluent (CFLT), and Monday.com (MNDY) are all trading well above their 2021 IPO price. However, while these stocks have performed well, they may also be volatile, so you could study investing strategies to determine if now is a good time to invest.


CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

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