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Top 15 tech companies to invest in for 2021
With FAANG stocks soaring, investors can look to familiar names in the industry. Here are some of the biggest and the best performing.
Tech companies like Amazon, Apple, Facebook and Google have irreversibly changed our society and everyday life. Increasingly, investors are buying stock in tech companies as a long-term investment. We’ve rounded up 15 of the most popular companies investors are eyeing to help you decide whether to dive into tech.
Most popular tech companies for investing
Many of the world’s biggest tech companies are based in the US and listed on either the NASDAQ or New York Stock Exchange. They’ve collectively earned the nickname FAANG — an acronym for five popular stocks: Facebook, Amazon, Apple, Netflix and Alphabet (the G a nod to Google, which is now under its umbrella of companies). Here’s a look at those stocks, and other top performers of 2021.
The FAANGs (Facebook, Amazon, Apple, Netflix and Alphabet)
Facebook (FB)
Facebook is the most popular social media platform in the world. Boasting more than 1 billion daily active users worldwide, along with Google it’s a gatekeeper to the advertising industry. Facebook also owns Instagram and WhatsApp, giving it a stranglehold on the day-to-day activities of nearly one-sixth of the world’s population.
- Exchange: Nasdaq
- Dividend yield: N/A
- Recent stock price, as of June 2021: $330
- Market cap, as of June 2021: $936 billion
- YTD performance, as of June 2021: 22.83%
Amazon (AMZN)
There’s no question that Amazon has changed the face of e-commerce, allowing online shoppers access to a huge range of items through one site. At the forefront of technological innovations — from drone-delivered groceries to smart-home technology — Amazon consistently ranks among the most popular choices for investors.
- Exchange: Nasdaq
- Dividend yield: N/A
- Recent stock price, as of June 2021: $3,206
- Market cap, as of June 2021: $1.62 trillion
- YTD performance, as of June 2021: 0.61%
Apple (AAPL)
Apple is one of the biggest brands in the world, revolutionizing the way we communicate — and even the aesthetics of personal design. Whether it’s the ubiquitous iPhone or sleek MacBook, Apple is a key part of day-to-day life to the tune of 1.5 billion products sold globally since its start.
- Exchange: Nasdaq
- Dividend yield: 0.69%
- Recent stock price, as of June 2021: $125
- Market cap, as of June 2021: $2.10 trillion
- YTD performance, as of June 2021: -2.72%
Netflix (NFLX)
Since revolutionizing the way we watch and talk about TV, Netflix has branched out into creating and producing original content. More than 200 million subscribers make Netflix the most popular movie streaming service in the world, though new competition joins the market nearly weekly.
- Exchange: Nasdaq
- Dividend yield: N/A
- Recent stock price, as of June 2021: $494
- Market cap, as of June 2021: $219 billion
- YTD performance, as of June 2021: -5.38%
Alphabet (GOOG)
Alphabet is best known as the parent company of Google — the search engine that answers the world’s questions. But Google also leads the way in global innovation, from driverless cars to new forms of AI.
- Exchange: Nasdaq
- Dividend yield: N/A
- Recent stock price, as of June 2021: $2,451
- Market cap, as of June 2021: $1.62 trillion
- YTD performance, as of June 2021: 41.86%
The 5 best performing tech stocks YTD
We selected these stocks mainly based on their performance since the beginning of the year. However, we also looked at the companies’ performance in the past five years, and we made sure the companies were at least small cap or higher and trading on a major US stock exchange.
3D Systems (DDD)
3D Systems, a US-based company, is one of the largest manufacturers of 3D printers, materials, scanners, 3D printing services, content creation software and modeling software. Many industries that use these services include the aerospace industry, defense, automotive, healthcare and entertainment.
- Exchange: NYSE
- Dividend yield: N/A
- Recent stock price, as of June 2021: $30
- Market cap, as of June 2021: $3.75 billion
- YTD performance, as of June 2021: 186%
Perficient, Inc. (PRFT)
Perficient is a global consultancy firm working mostly with enterprise customers in North America. But it also has offices in Europe, India and China. The company offers everything digital from enterprise mobile applications, creative services, marketing, Internet of Things, information technology, management consulting, custom development and platform implementations and more.
- Exchange: Nasdaq
- Dividend yield: N/A
- Recent stock price, as of June 2021: $73.53
- Market cap, as of June 2021: $2.43 billion
- YTD performance, as of June 2021: 58%
EMCORE Corporation (EMKR)
EMCORE Corporation serves the aerospace and defense sectors as well as the telecommunications sector. It offers advanced fiber optics and micro electro-mechanical systems. Its technology is also used for high-speed broadband and wireless networks.
- Exchange: Nasdaq
- Dividend yield: N/A
- Recent stock price, as of June 2021: $9.63
- Market cap, as of June 2021: $354 million
- YTD performance, as of June 2021: 86.99%
Allot (ALLT)
Allot Ltd. is an Israeli company that offers intelligence and network-based security products for enterprises and telecommunication providers of mobile broadband, wireless broadband, mobile satellite service and DSL carriers.
- Exchange: Nasdaq
- Dividend yield: N/A
- Recent stock price, as of June 2021: $18.81
- Market cap, as of June 2021: $670 million
- YTD performance, as of June 2021: 81.21%
Magnachip Semiconductor Corp (MX)
Magnachip designs and manufactures analog and mixed-signal semiconductor solutions. The company has more than 1,200 granted and pending patents, most of which are used in a wide range of applications in communications, Internet of Things, consumer, industrial and automotive applications.
- Exchange: NYSE
- Dividend yield: N/A
- Recent stock price, as of June 2021: $23.30
- Market cap, as of June 2021: $1.08 billion
- YTD performance, as of June 2021: 73.36%
The 5 best earnings growth tech stocks
For this category, we selected tech stocks that had the highest growth in their earnings per share (EPS) in one year. Other criteria included EPS and revenue growth in the past three years, the stocks had to be at least small cap or higher and must be trading on a major US stock exchange.
Salesforce.com (CRM)
Salesforce.com, Inc. is an American software company based in San Francisco. It offers services in several cloud-based categories, including commerce, sales, data, marketing, community, manufacturing, analytics, apps, Internet of Things and more. What’s impressive about this company is that it had the highest EPS growth in a 12-month period.
- Exchange: NYSE
- EPS growth in 1 year: 2,820%
- Dividend yield: N/A
- Recent stock price, as of June 2021: $237.48
- Market cap, as of June 2021: $219.58 billion
- YTD performance, as of June 2021: 7.79%
Amkor Technology (AMKR)
Amkor Technology, Inc. is a US semiconductor packaging and test services provider. It operates factories in China, Japan, Korea, Malaysia, Philippines, Portugal and Taiwan, which makes Amkor a leading player in the semiconductor industry.
- Exchange: Nasdaq
- EPS growth in 1 year: 180%
- Dividend yield: 0.76%
- Recent stock price, as of June 2021: $22.05
- Market cap, as of June 2021: $5.38 billion
- YTD performance, as of June 2021: 48.89%
CMC Materials (CCMP)
CMC Materials, Inc. is a supplier of advanced materials used for integrated circuit devices within the semiconductor industry. Its technology helps customers produce smaller, faster and more complex devices with fewer defects.
- Exchange: Nasdaq
- EPS growth in 1 year: 257%
- Dividend yield: 1.22%
- Recent stock price, as of June 2021: $150
- Market cap, as of June 2021: $4.40 billion
- YTD performance, as of June 2021: 3.02%
Brooks Automation (BRKS)
Brooks Automation is a US company that provides services in the semiconductor industry. The company provides robotics, automation, vacuum and instrumentation equipment for multiple markets, including semiconductor manufacturing, technology device manufacturing and life sciences. With the massive demand for semiconductors that dwarfed supply, it’s no wonder that this company had a massive EPS growth in the past 12 months.
- Exchange: Nasdaq
- EPS growth in 1 year: 576%
- Dividend yield: 0.40%
- Recent stock price, as of June 2021: $99.13
- Market cap, as of June 2021: $7.37 billion
- YTD performance, as of June 2021: 49.47%
Autodesk (ADSK)
Autodesk, Inc. is a US company that makes software and services for multiple industries, including architecture, engineering, construction, manufacturing, media, education and entertainment. Some of the popular software products by Autodesk are AutoCAD, Sketchbook, Inventor, Fusion 360 and the Autodesk Product Design Suite.
- Exchange: Nasdaq
- EPS growth in 1 year: 466%
- Dividend yield: N/A
- Recent stock price, as of June 2021: $284.78
- Market cap, as of June 2021: $62.67 billion
- YTD performance, as of June 2021: -4.06%
A general investor’s checklist
Take time to learn the basics before investing in any company or sector, asking simple questions like:
- What does the company do? Can you explain what the company does in a few sentences? If not, you might want to go back and flesh in knowledge gaps so that you’re on more solid footing.
- Is it earning a profit? Tech companies can operate for years before breaking even. Popular brands like Zillow, Square, Uber, Pinterest, and even Tesla weren’t yet profitable in 2019. Consider a company’s profitability and where its financial trajectory is headed.
- Who are its main competitors? Every company works alongside competitors. Before you invest, identify whether the company is the market leader, a newcomer or a fast-growing disrupter. If the company you’re interested in is global, keep an eye on foreign competition too.
- Who runs the company? You may not be able compete with the knowledge of wealth management companies and banks, but you can still do your homework. Review the company’s website or find trusted analysis to glean insights about its stability and management style.
- Is its position sustainable? If you’re investing for the long term, sustainability is key. Research bureaucratic, financial, industrial or technological barriers to its growth.
Compare platforms for trading tech stocks
Disclaimer: The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
Bottom line
We live in an age of abundant innovation that’s pushed tech companies to lead the stock market’s longest bull run. If the fast-paced world of technology has caught your eye, look to popular stocks and potential leaders of tomorrow available through mainstream brokers. Get started with building your portfolio by comparing online trading platforms.
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