Best Tech Stocks to Consider Buying
With a new year comes new promise. While 2017 isn’t exactly fresh anymore, as we near March, there’s still a ton of potential for investors to find value in the technology industry. Below I’m going to cover some of the best tech stocks to consider buying in 2017.
When looking at the best technology stocks, let’s make an important distinction: you have the high-risk, high-reward investments that will potentially yield huge gains but, at the same time, there’s room for error and losses.
On the other hand, you have the high-dividend tech stocks that are less likely to bring in earth-shaking gains, but are old reliables that can be counted on to generate returns on investment.
Another thing to watch in the technology world is emerging tech. The companies most likely to shoot up in share value are those that capitalize on the next big thing. Facebook Inc (NASDAQ:FB) did exactly that when the company was able to dominate the social media environment and turn itself into an empire.
When looking for tech stocks to buy, having a solid reputation and products are still great feathers in your cap but, for the big jumps, you want the company that knows what consumers or businesses will be itching for tomorrow.
Now on to my technology stock list of the top tech stocks in 2017.
5 Technology Stocks to Watch in 2017
|Top Tech Stocks||Ticker|
|3.||Snap, TBD – March 2017 IPO|
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
The future of tech appears to be in augmented reality (AR) and virtual reality (VR). Nearly every name on this list is involved in some way or another in AR or VR. We’ve seen how wildly successful these applications can be, as evidenced by the Pokémon Go mobile game craze that swept the world last summer, with hundreds of millions of downloads.
Some will dismiss AR tech as a fad (after all, Pokémon Go has certainly faded from its once near-ubiquity at the height of its popularity) but don’t be fooled. AR and VR are going to be big.
I’m a devout believer that consumers are going to gobble up this type of tech as soon as it hits the mainstream, and Advanced Micro Devices, Inc. (NASDAQ:AMD) is in a perfect position to take advantage. Consider that the company’s stock shot up over 630% in the past 12 months, and 23% this year alone.
The chipmaker has been around for a while, but it might be about to experience a resurgence in stock value as it poises itself to be one of the premier chipmakers in the business.
Don’t forget that all our devices need these tiny electronic squares to make them run, and while AMD may not be the biggest player in the market, it’s definitely angling to be one of the most impactful.
AMD is currently developing a headset that runs both AR and VR alongside its chips, meaning that, if there is a boom coming in these markets, AMD is one of the premier technology stocks to watch in 2017.
2. Apple Inc. (NASDAQ:AAPL)
Speaking of AR, have you heard Apple Inc. (NASDAQ:AAPL) CEO Tim Cook speak about it? Because, if you don’t believe me that AR and VR are set to explode onto the scene, take it from the top boss at the most profitable company in the world.
“I regard it as a big idea like the smartphone,” said Cook in a recent interview. “The smartphone is for everyone, we don’t have to think the iPhone is about a certain demographic, or country or vertical market: it’s for everyone. I think AR is that big, it’s huge.” (Source: “Apple CEO Tim Cook: As Brexit hangs over UK, ‘times are not really awful, there’s some great things happening’,” Independent, February 10, 2017.)
That’s some heavy praise from a man in a position to really drive the growth of AR tech. The “iPhone 8” rumor goes that the 10th-anniversary phone will be revolutionary in a number of ways, not the least of which includes AR functionality. In that case, AR could become the must-have feature of the iPhone 8, which will naturally boost sales and send AAPL stock skyrocketing.
What makes Apple one of the tech stocks to buy in 2017 is the potential backed up by a pedigree of proven success over decades.
Not to mention that the company is one of the best high dividend tech stocks, though the yield dropped last quarter to 1.7% from 2.1% while the payout, $0.57, remains static. (Source: “Dividend History for Apple, Inc. (AAPL),” StreetInsider, 2017.)
Combine that dividend with future potential to dominate the market, and you have what amounts to one of the best technology stocks.
3. Snap Inc.
While technically not yet available, Snap Inc. is set to IPO in March and, when it does, it could be one of the hottest stocks of the year. If you’re looking for one of the top tech stocks in 2017, Snap Inc. might end up fitting that bill.
The company has been repeatedly praised for its mature approach to the IPO market, reportedly avoiding pitfalls that other tech giants fell into, like Twitter Inc (NYSE:TWTR). Specifically, the company has not prioritized growth as the only metric worth looking at, something that cost Twitter after its user growth slowed.
Snap is currently slated for a March release into the public market, and it might be one of the better tech stocks to consider buying. There’s a lot of hype around the company going public, and this has been one of the most eagerly awaited tech IPOs in over a year.
With a $25.0-billion valuation and strong leadership at the helm, investors are rightfully excited that Snap might be one of the next big things in tech stocks.
4. Tesla Inc (NASDAQ:TSLA)
Tesla Inc (NASDAQ:TSLA) has a big year ahead of itself. As we discussed earlier, being on the cutting edge of tech is usually a good way to earn yourself a lot of money in the long run. Of course, being too far ahead can have its drawbacks as well, and investors are often wary that CEO Elon Musk is trying to push too far, too fast.
But, whatever your feelings on Musk and Tesla’s current trajectory, there is definitely potential for TSLA to become one of the top tech stocks to buy in 2017.
What makes Tesla one of the best technology stocks is that—much like AMD and Apple’s push in AR and VR—the green tech company is innovating in ways that few companies would aspire to. With key inroads being made in both autonomous vehicle software and green home tech like solar panels, you have a bevy of good reasons to believe in Tesla.
What makes 2017 so crucial to Tesla is its “Model 3” vehicle. With the first consumer-focused car that the company has ever released, at an affordable $35,000.00, you have what may be able to propel TSLA stock to new heights when the car hits markets, currently scheduled for production sometime in 2017.
Of course, some of the projected sales numbers of the Model 3 are quite optimistic compared to shipping numbers of Tesla cars in years past. The company has said it wants to ship 500,000 units in 2018, even though it fell short of the 80,000 projected cars shipped in 2016. (Source: “Tesla falls short of its projected vehicle deliveries for 2016,” TechCrunch, January 3, 2017.)
Lofty expectations or not, the Model 3 could revolutionize the driving world and—if it is as successful as some analysts believe it will be—cause Tesla stock to balloon upward.
5. International Business Machines Corp. (NYSE:IBM)
Ending off with a company very different than the previous ones on this list, we hit International Business Machines Corp. (NYSE:IBM).
Old reliable IBM stock is hardly the most exciting of companies to invest in, but it is still one of best high dividend tech stocks around. Not to mention that some of its own cutting-edge tech, like “Watson” (its Jeopardy!-playing AI), is wowing investors and businesses all over the world.
And, while it may not be jumping by 100% anytime soon, the company’s stock has risen by over 35% in the last 12 months.
IBM is a solid, safe stock that will generate high dividends and has the potential to capitalize on emerging technologies with vast resources at its disposal, including a top-tier research and development team.
Bottom Line on Top Tech Stocks to Invest in 2017
Those were my picks for the best tech stocks to consider buying in 2017.
With that top five technology stock list, you have a handful of great companies that are all in their own way trying to innovate and be on the forefront of next-generation tech. Whether it’s the more well-known stocks like Apple, Tesla, and IBM, the up-and-comer AMD, or the fresh Snap, you have a number of solid tech stocks to buy.
Each carries with it its own inherent benefits as well as dangers, and choosing which to invest in will come down to a number of factors, not the least of which is a personal investing strategy. Are you looking for large gains over the short term with increased risk? AMD is your pick. Want something reliable for the long term? IBM stock is a winner.
Apple is in a similar place as IBM, although with flagging sales numbers in 2016—coupled with the potential of the iPhone 8—you have a risk-reward scenario.
Tesla also falls into that category, although it is probably more risky, due to the novelty of its products and designs. And, finally, there’s Snap for those looking to get in on the ground floor of a company.
With this knowledge in hand, what are you waiting for?