Best Performing Tech Stocks

Check out the best performing tech stocks below for some inspiration.

Updated: January 15, 2024
Matt Crabtree

Written By

Matt Crabtree

 

With technology constantly changing and evolving, it’s no wonder that tech stocks are hot items in the market these days. At one time, it was heavily futuristic, and while it certainly could still fall into that category, we are living in the age of technology.

This particular sector has a reputation for yielding really high returns, which is probably another factor that has drawn people to it. 

We certainly can’t predict what these tech stocks are going to do, but you can learn a lot from looking at the current performance. If you are going to invest in tech stocks, it will be important to pay close attention to the industry, the market, and whatever stocks you choose to play around with.

Check out these best performing tech stocks below for some inspiration!

ServiceScoreRegister
First Solar★★★★★Click Here
IBM★★★★★Click Here
Jack Henry★★★★★Click Here
Apple Inc★★★★★Click Here
Hewlett Packard Enterprise★★★★Click Here
Microsoft★★★★Click Here
Alphabet Inc★★★★Click Here
Analog Devices Inc★★★★Click Here
TD Synnex Corp★★★★★Click Here
Cisco Systems★★★★★Click Here

What Exactly is a Tech Stock?

It’s a good idea to know and understand what really falls into this category before you start investing in it. Technology stocks are a broad sector and they can range pretty widely. In fact, it’s one of the largest sectors of the stock market. It is also one of the most diverse with so many different categories inside. 

You might see anything that fits into these ranges. 

  • Software
  • Services
  • Hardware
  • Equipment
  • Semiconductors
  • Semiconductor equipment

This means you have everything from phones to computers to chips, circuits, AI, GPS, and more. It’s huge! And let’s be honest. There’s new technology and equipment coming out all the time, which means this market continues to grow exponentially. 

Technology stocks are going to be the companies that build these software, services, products, and equipment.

Think of companies like Apple, Microsoft, and other similar entities. And that’s just the beginning. You should also know that tech stocks are considered to be growth stocks. Very few of them are known for being income producers, but are rather selected for the growth and total return. Some do pay dividends, but income is not their priority. 

The Top Performing Tech Stocks

You may notice as we look at these tech stocks that some of them have negative annual returns. However, there are many that still have positive returns as well. And the thing to note is that even those who ended down in the last year still outperformed others in the market. 

Take a look at these top performers, and learn a little bit about them. 

1. First Solar

First Solar is an American company that manufactures solar panels. They are heavily involved in the solar industry with panels, power plants, and other supporting services too. Their push towards eco-friendly technologies and systems has certainly helped them in the current technological age.

This front-runner easily outdid the competition in the technology sector. In 2022, their performance was up nearly 72%. That’s an astronomical number, especially if you consider how volatile the market was, and how very few turned up a positive performance, even in this sector. 

Normally, energy companies would not fall under the technology sector. Energy has its own sector. However, because of the technological advances of panels and their contributions to solar technology, this company falls into either sector. 

2. IBM

It’s really not surprising that we would see IBM at the top of the tech sector list. And as far as overall performance, it’s currently at the top of the list. In 2022, IBM shows a positive performance number of more than 5%. With so many companies that couldn’t even make it above zero, this is pretty impressive.

IBM is an international company. The acronym stands for International Business Machines. They are well-known for computer systems, but they are much deeper in technology than just computers. They create multinational technology solutions of all kinds. 

Their products range from databases to operating systems servers, storage, analytics, and more. They also contribute to infrastructure in many ways, including AI, enterprise, workflow, and more. With so many different aspects, it’s no wonder they are finding their place high on the charts. 

3. Jack Henry

Jack Henry is a lesser-known technology guru, but mostly because unless you use their technology you won’t know them. This American tech company primarily serves the financial industry. They create platforms and software for banks and payment systems.

You won’t find them selling technology to the masses, but they serve companies that need payment processing and other financial software.

Ask people in the financial industry, and they will likely recognize this company by name. They serve approximately 9,000 through three different brands that are under their umbrella. 

Some analysts might feel that Jack Henry is better suited to the financial sector. And this may be true. But it’s through the use of software and equipment that they do business, which qualifies them for the tech stock industry. Their performance rounded out 2022 at right around 5%. 

4. Apple Inc

Most of the best performing stocks that we’ve shared so far have the best performance for 2022 alone. This number doesn’t really take a look at historical performance and growth, which is also vital to pay attention to. Here’s why.

Apple falls into the category of a company that had negative returns in 2022, down about 27%. However, if you look at their annualized returns, those have been substantial in 3, 5, and 10-year numbers. Their 3-year annualized return is close to 50% at 48.4%. 

So, while their performance wasn’t exactly amazing in 2022, very few companies were truly amazing. That being said, they show clear promise based on historical numbers. They have a longstanding reputation as a high performer in the tech markets. They are also easy to invest in from just about any trading app

5. Hewlett Packard Enterprise

Hewlett Packard is another American company that offers multinational solutions in the IT industry. Many companies turn to HP to provide computers and other software for their employees, but their services don’t stop there.

In terms of technology, HPE can provide equipment, infrastructure, software, and more. In more recent developments, they’ve taken on the responsibility of creating 3D printing solutions, and their printers are far easier to access and use than some companies out there. 

Hewlett Packard has been around since 1939, so they’ve been providing technology solutions for more than 80 years. They really have done a great job of staying up to date with technology and creating new and innovative solutions for the masses. 

From personal to business, Hewlett Packard provides a little bit of everything. 

6. Microsoft

Microsoft and Apple have always been steady competitors because they provide a lot of similar things that are still vastly different. The performance returns of 2022 were down for Microsoft, even more so than Apple.

However, this is yet another company that if you look at their annualized numbers, they’ve been consistent with high performance through the years. 

The 3-year annualized return of Microsoft falls in at about 29% and the 5-year is even better at 31%. It’s a great example of not judging performance just based on the current numbers in the market. They may have a down year, but such is the market if you think about it. 

Microsoft was founded back in 1975. They will always be known for their hand in the computer market, as well as for creating quality software to back it. They continue to do so, and they are constantly improving their technology and software offerings. 

The founders exited the company, but that didn’t slow Microsoft down and they continue to grow and make strides in the tech markets. 

7. Alphabet Inc

Alphabet Inc. is another top contender in the tech markets. You probably are more familiar with Google and Android, both of which fall under the Alphabet umbrella. Google is a leading search engine, but they also create software and equipment like smartwatches and cell phones.

Android has long been an equipment and technology provider as well. Alphabet’s stance has always been to support ambitious technological projects, which is clearly portrayed with Google and Android as examples.

The company strives to make big ideas come to life, without taking away the freedom of the children company. This multinational tech holding company has only been around since 2015, but they’ve stuck to their guns in providing top products and helping to bring them to life. They employ more than 180,000 throughout the world and hold assets that far exceed 300 billion pounds. 

The annualized returns of Alphabet struggled to get off the ground back in 2015. However, their 3-year return is pretty promising at 23%. 

8. Analog Devices Inc

Just because the name says analog doesn’t mean that this company is behind the times. In fact, it’s quite the opposite. They’ve shown astronomical growth, and they’ve been around since 1965. This multinational American company is all about semiconductors and data conversions.

When it comes to the tech markets, a lot of the frontrunners are companies like Apple and Microsoft, which are really known for their technology equipment and software.

But this company pushes to the top with signal processing, data conversion, power management, and more. Analog devices still have a place in the industry, it’s just that many of us don’t truly understand what that means.

That being said, this is currently one of the fastest growing tech stocks in the industry, with revenue growth of close to 40%. Their stock prices have been up lately, so be sure to watch for a down day to jump into this one if you plan to give it a try! 

9. TD Synnex Corp

This is another company that doesn’t fall into your everyday software and technology items groups. Instead, they are all about the IT services and they market primarily to businesses that need IT support. Synnex is a multinational company that is headquartered in the United States. It was founded in 1980.

They too fall into a top growth stock in the technology markets, and some of that has to do with their recent announcements on expansion opportunities.

Their IT focus is shifting more to not just support servers, networking, and other similar backup, but to also cover cloud services in many different ways.

In addition to new capabilities, they also expanded who they are serving. They market to businesses worldwide. With recent expansions, they added more than 60 countries to their support, and that includes their cloud-based services. 

This company is set for strong growth, which should translate to some of the top performance. It’s not guaranteed, but it’s certainly worth checking out! 

10. Cisco Systems

Last, but not least, Cisco Systems falls among the best performing stocks in the tech markets. This is another American-based company, but they offer multinational services that are heavily geared towards digital communications.

At one time, Cisco was primarily known for their phone systems. While that’s still a major part of what they do, they certainly encompass technology in providing these deep-rooted needs.

They’ve also grown with the markets to provide other important services for technology and communication. 

Cisco provides software, cloud services, security, and more for businesses to take advantage of. They also have equipment that rounds out a lot of their services too. This company has been around since 1984, and they’ve always stayed at the top of their game. 

While their one-year return doesn’t look all that amazing, their market capitalization increased by more than 100 billion pounds, and that’s substantial. 

What are the Most Popular Tech Stocks?

Some of the most popular tech stocks certainly fall into our list above of the best performing stocks. While they are widely held and popular for investing, they aren’t always at the top in terms of overall performance. That being said, you can look at the historical data and find many of these are consistent in performance, which is a major upside. 

These are some of the most widely held tech choices. 

  • Apple
  • Microsoft
  • Alphabet
  • Amazon
  • Tesla

Of course, there are plenty of others. A few of these had pretty awful performance in the past year, but still show positive potential overall in terms of performance. 

Investing in Tech Stocks

If tech stocks are something that interests you, they are typically easy to get your hands on. Many of the companies listed here are American-based, even though they serve on a multinational level. Because of their US base, they will be primarily available on US-based stock exchanges. 

In order to invest in these stocks, you simply need to use a trading platform that will allow you access to the markets they are found in. This might require a bit of research on your part to best determine just which markets you will need. This will depend on which tech stock it is you want to purchase. 

Also, we should point out that you don’t necessarily have to purchase individual stocks to be in the tech markets. You could instead choose to invest in a tech fund or ETF to have some small portion of the market. This is a great way to be exposed to several different tech stocks without having to choose which one is the right fit! 

The Advantages of Holding Tech Stocks

The market is a volatile place.

You just never know exactly what you are going to experience. Every sector has its advantages and disadvantages. The best way to gauge these and understand your risks is to understand the sector itself. 

These are some of the top advantages of owning tech stocks in your portfolio. 

✔️ They provide a great way to add some diversity that is directly geared towards growth. 

✔️ The tech market itself is extremely diverse with businesses in many different technology related industries. 

✔️ Technology innovation isn’t going anywhere, and this is a great way to contribute in some small way to that innovation

✔️ The potential for growth can be substantial, although it is never guaranteed. 

The Disadvantages of Holding Tech Stocks

Just as every sector has advantages, they all have disadvantages too. Technology stocks certainly have some downsides, despite their benefits. In the end, it’s up to you to determine whether they are a good fit for your portfolio needs. 

These are the disadvantages of tech stocks. 

❌️ This sector is known for high volatility and may feel like a roller coaster to watch

❌️ Tech stocks are often valued very high because of the type of market it is in. Performance doesn’t always live up to that value. 

❌️ Tech stocks are rarely a good source of income. While some payout dividends, this is a market primarily geared to growth in your portfolio. 

Final Thoughts

Tech stocks aren’t necessarily for everyone. However, even if you prefer to invest in an income generation model, utilizing a small portion of tech stocks could add some diversity and bring growth to your portfolio. 

This sector is really heavily weighted towards growth and that is where their performance really shines as well. Some stocks will perform well in the moment, while others will perform consistently from year to year and sport much higher annualized returns. 

Building your portfolio should be based on your needs and preferences. Tech stocks can be a great addition for growth and diversification, but they certainly aren’t the choice for everyone.

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