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Best tech stocks to buy in 2021
On this page we pick the top five tech stocks and discuss the most important information about each one. Our experts have analysed the market to come up with these selections, so keep reading to find out the shares we’re most excited about right now.
What are the top tech stocks to buy?
These are the best tech companies to invest in. You can use the links in the table to find their most up to date share price, or read on to get a summary of why we’ve chosen each one.
|#||Stock symbol||Company name|
|3||MU||Micron Technology Ltd.|
|5||TSM||Taiwan Semiconductor Manufacturing Company|
1. Apple Inc. (NASDAQ: AAPL)
Apple is one of the biggest brand names in the world. Since launching the iPhone in 2007, the Apple story has been one of near-constant success. Its share price has soared in the past decade, from just $10 in 2010 to over $100 by the end of 2020.
Over the last few years, Apple’s growth has made it the most valuable company on the planet. It’s the largest technology company around, and has a dedicated fanbase that routinely queues up around the block to buy new products on release day. That makes it more than deserving of top spot on our list.
Technology and computing are competitive areas, so Apple is going to keep innovating to hold the competition at bay. One of its next big frontiers is to bring the development of its chips in-house, rather than outsourcing them, which could help reduce costs and extend its competitive advantage.
2. Alphabet Inc. (NASDAQ: GOOGL)
Alphabet is the parent company of Google, which is the dominant force of the modern internet. The Google story has been another successful one, as the stock has never been valued below $54 – the price it was when it went public in 2004. It now trades at over $2000.
Google has been able to extend its grip to all areas of the online world. Products like Gmail, Docs, and Meet are used almost universally, the Google website is the most visited in the world, and two other leading sites – Youtube and Blogger – are owned by the Google machine.
It’s almost impossible to imagine a world without Google. It’s so embedded in our lives that it deserves its spot on this list. It’s expensive, but it’s a blue-chip stock with a great brand name and a long history of turning a profit.
3. Micron Technology Inc. (NASDAQ: MU)
Micron is the largest US producer of memory chips for computers. It makes chips that act as the main memory unit in PCs and smartphones, as well as some that offer long term data storage.
Although it’s not as high profile as the two companies above it, Micron makes this list because of the importance of what it makes. Demand for new computers and phones surged during the coronavirus pandemic, while cars and network servers also now need these chips to run their systems.
Chip manufacturing is very competitive, but the future is bright because the demand for them shows no sign of slowing. The increased electrification of cars, for example, is likely to drive demand for faster and faster chips. That should bode well for a company already well-established in the industry.
4. Synopsys Inc. (NASDAQ: SNPS)
Synopsys is an American company that develops chips and software to power things like artificial intelligence, self-driving cars and the internet of things.
It’s ranked fourth on our list thanks in part to an extraordinary run where its share price grew by more than 400% in five years. It has played an important role in the rise of automation, developing the technology that powers more and more devices in our homes that connect to the internet.
Synopsys already boasts 8 out of the top 10 tech companies as its customers, as well as some of the leading manufacturers of automated vehicles. It looks to have a reliable revenue stream and produces some of the most advanced, in-demand technology in the industry.
5. Taiwan Semiconductor Manufacturing Company (NYSE: TSM)
The Taiwan Semiconductor Manufacturing Company, better known as TSMC, is the world’s leading manufacturer of semiconductors – computer chips that play a vital role in everything from mobile phones to cars.
Over the last few years TSMC has overtaken its major US rival, Intel, at the top of the semiconductor tree. It manufactures some of the most advanced chips in the world and it’s become a major part of the world economy as electronics has taken centre stage. Based in Taiwan, it’s in the middle of geopolitical toing and froing between the US and China.
Demand for semiconductors grew so fast in 2020 that it prompted serious shortages. It also caused TSMC’s share price to double that year. The demand is unlikely to slow down, but TSMC is investing significantly in producing more chips to meet it and it’s going to take a lot for anyone else to knock it off its perch.
Where to buy the best tech shares
To get any of these stocks right away, you need to use a broker. We have been through all the leading platforms to pick out the top brokers and listed them in the table below, so you can be sure that whichever one you choose is an excellent option.
What is a tech stock?
Any company that operates in the technology sector, which might mean developing new computer software or manufacturing the hardware that powers our phones. Tech stocks are often some of the most well-known companies around and offer up some of the biggest gains if you invest at the right time.
Are tech shares a good investment?
They are if you’re the sort of investor who’s happy to take a risk or to pay up for the top stocks on the market. Tech stocks are often priced quite high relative to how much profit they make, because they trade on future potential rather than their current numbers.
The reward for that extra risk is the potential for a big payoff, as tech stocks can grow much faster than companies in other sectors. Technology is only going to keep advancing, so owning some tech shares in your portfolio is a good idea, just be sure to balance them out with steadier stocks as well.
As with every industry, it’s important to track the latest news so you know about any new developments. In tech, that’s especially vital because releasing new technology can have a big impact on a company’s price. Use our news and analysis below to help you stay on top of what’s new.