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So far, 2017 has been a kind year to tech stocks. While some analysts feared that the chasm between U.S. President Donald Trump and the typically left-leaning Silicon Valley would create tension and perhaps damage tech shares, the opposite has proven true so far.
The top tech stocks right now are hot, and only seem to be getting hotter. With some of the highest gains on the currently thriving Wall Street, you can do a lot worse than investing in technology companies.
The question on everyone’s mind is, “What are the best tech stocks to buy right now?”
Below, we’ve got a list of what many might consider to be the best tech stocks to buy now. But, before we get to that, let’s recap the current state of the industry as a whole.
First, as previously mentioned, there was some concern in the aftermath of the Trump election victory that the liberal-leaning California and its tech hotbed would come into conflict with the controversial leader. Whether these conflicts are taking place behind closed doors, it has yet to negatively impact the share prices of tech stocks.
Trump was also quick to appoint many tech leaders, like Elon Musk and Uber Technologies, Inc. CEO Travis Kalanick, to his business advisory council. The anticipated clash of the tech sector vs. Trump did play out (in muted form) when Kalanick withdrew from the council following pressure from the public due to Uber’s undercutting of a taxi cab strike protesting the Trump travel ban and other missteps. (Source: “Uber CEO steps down from Trump advisory council after users boycott,” The Guardian, February 3, 2017.)
But, other than a few choice flashpoints, there hasn’t been much to speak of in terms of conflicts between Trump and tech companies. This added sense of relief that the new administration will likely get along with the tech industry only strengthens the best tech stocks for 2017.
Couple this with the fact that Silicon Valley luminary Peter Thiel is an adviser to Trump and worked on the president’s transition team, and you have what may amount to a rather tech-friendly—if ideologically distant—presidency.
Another huge advantage for tech stocks going forward is the sheer amount of innovation that is likely to take place in the coming years. Augmented reality (AR), virtual reality (VR), machine learning, artificial intelligence (AI), the Internet of Things (IoT), autonomous vehicles, quantum computing, green tech, drones…the list goes on and on.
There are so many exciting new areas in tech that are just beginning to be explored to their fullest potential that any one of these could lead to a new breakout market. Many an eager investor is itching to get their hands on some of the best tech stocks to buy now.
We’ve already had tastes of some of the possibilities contained within the aforementioned technologies and, for investors looking to stay ahead of the curve, finding the right company that can capitalize on any one of these innovations in the near future is in for some big returns.
And it’s not just happening in the United States. The tech sector is powering economies across the globe and shows no signs of slowing down. Take, for instance, Premier Li Keqiang of China’s comments naming innovation as a key part of the economy’s restructuring and the resulting boost in Chinese markets. (Source: “Tech Stocks Lead China Market Higher,” Fox Business, March 6, 2017.)
The tech surge is currently a global phenomenon, with a number of great ways that investors can take advantage of the markets by getting in on some of the best tech stocks right now.
So let’s get on to the list of the best tech stocks for 2017.
Best Tech Stocks List Right Now
|Advanced Micro Devices, Inc.
|International Business Machines Corp.
1. Netflix, Inc. (NASDAQ:NFLX)
Netflix has had a strong opening to the year, earning roughly 14% since the beginning of 2017. But, beyond the current success, there’s plenty of reasons to believe that the streaming-service king is likely to grow.
Take a look at the Oscars. This year at the Academy Awards, Manchester by the Sea was nominated for six awards, winning two. What does this have to do with technology stocks 2017? Consider that it was produced by “Amazon Studios,” part of Amazon.com, Inc. (NASDAQ:AMZN).
With Amazon paving the way, Netflix seems poised to begin earning accolades all across the board which can only help boost sales of its original movies and shows, boosting stock prices.
Speaking of television, the tech giant has had an extremely successful run of late with its programming. From Stranger Things to House of Cards to The Crown, Netflix has not only created critically acclaimed works, but also widely popular cultural touchstones.
Whereas once thought to be the rarefied air of HBO and other premium cable channels, Netflix is intent on muscling in and gaining an ever more dominant foothold on the streaming market. While competitors abound (like Amazon), none have yet to replicate the success of Netflix and its production studios.
Add that to Netflix’s solid numbers, like 93.8 million worldwide subscribers with uninterrupted quarter-over-quarter growth since 2011, and you have what makes for a great tech stock investment in 2017. (Source: “Number of Netflix streaming subscribers worldwide from 3rd quarter 2011 to 4th quarter 2016 (in millions),” Statista, last accessed March 8, 2017.)
Not to mention that revenue is also steadily on the rise, as per the company’s Q4 2016 report. Over the past 12 months, the Netflix share price has soared over 50%. With such growth, it’s no wonder why many consider Netflix to be one of the best tech stocks right now. Don’t expect it to slow down any time soon, either.
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Remember all those new tech innovations I was gushing over earlier in this piece? As you would expect, a lot of them require state-of-the-art computer chips in order to run effectively. And if these potentially world-altering techs are set to take off, it only stands to reason that they’re going to need a lot of chips, which makes AMD stock so damn appealing.
Last year’s tech stock darling, AMD, has shot up 439% over the past 12 months; 17% year-to-date. The company is on a rocking path upwards, and has so far in 2017 showed little signs of slowing.
What puts AMD in such a potentially profitable position is its chip manufacturing business lending itself well to what other tech producers are planning. Companies from Apple Inc. (NASDAQ:AAPL) to Facebook Inc (NASDAQ:FB) are looking into tech like AR and VR, with AMD ready to provide the next generation of chips needed to power these new creations.
While another year of exponential gains to the tune of 400% is unlikely, the company is nonetheless on track to register solid gains.
At just over $13.00 per share, AMD is also one of the more affordable stocks on this list, and is poised to be one of the best tech stocks to buy now.
3. Facebook Inc (NASDAQ:FB)
Despite some controversy following the U.S. presidential election regarding Facebook’s hand in spreading fake news across the Internet, the company has largely been on the receiving-end of good press and better quarterly reports. As such, the social media giant continues to be one of the better stocks available.
The company’s stock price has risen almost 20% since the beginning of 2017, while gaining nearly 30% over the past 12 months.
With new hardware like the “Oculus Rift” headset ready to take advantage of AR and VR, Facebook is ready to branch out beyond social media and foster new means of revenue.
Currently, the vast majority of Facebook’s revenue comes from advertising. The company reported $26.885 billion in ad dollars in 2016. An emerging technology like VR might just be what the company needs to help diversify its revenue stream and get away from being a one-trick pony. (Source: “Facebook’s advertising revenue worldwide from 2009 to 2016 (in million U.S. dollars),” Statista, last accessed March 2, 2017.)
But, then again, that trick is a good one. Whether Oculus Rift succeeds is relevant to FB stock’s short-term outlook, but between the staying power of Facebook’s social media platform and the potential of its other acquisitions (like Instagram), you have a company ready to keep the good times rolling in 2017.
4. International Business Machines Corp. (NYSE:IBM)
While Facebook is looking to capitalize on the AR and VR emerging markets with its Oculus Rift headset, IBM is ready to take on machine learning and AI.
“Watson,” a Jeopardy! champ and otherwise fascinating piece of AI, has been impressing investors with the sheer number of applications to which the cutting-edged tech can be applied. IBM’s development wing is hard at work creating the next step in machine learning and AI development with Watson, among other projects.
Add that to a solid 3.6% dividend yield and a renowned brand, and you have a winning technology share that can easily be considered one of the best tech stocks right now. IBM has grown nearly nine percent since the beginning of 2017, and almost 29% over the past 12 months.
Why Invest in Technology Stocks?
Some analysts are convinced we’re in a tech bubble waiting to burst. And there are definitely signs that lend credence to that line of thinking.
Take Snap Inc‘s (NYSE:SNAP) recent initial public offering (IPO). The company jumped by over 40% before trading even began when it went public on March 2. The amount of fervor and subsequent jump in the SNAP stock price has pushed some analysts to proclaim another bubble, and the strong gains in such a short time for a company with no discernible path to profitability as of yet is definitely worrisome. (Source: “Here’s How Snap’s IPO Just Proved We’re In a Tech Bubble,” Fortune, March 3, 2017.)
Conversely, the aforementioned companies on this list all have solid pedigrees of providing products that people and businesses want or need. From chips to social media to computing innovations to online streaming, there’s little doubt that these products will stay popular for the foreseeable future, and that these companies will be around to provide them.
With that in mind, 2017 might be one of the better years to invest in the sector, as the economy is shooting up with some of the best tech stocks right now, and multiple game-changing technologies loom on the horizon.
Editor’s Note: Hi, Stephen Karmazyn here. If you enjoyed this article, you can get more of my opinions and commentaries in our popular daily tech letter, Profit Confidential. Published daily, it’s FREE! Join us when you click here now.