Are you looking for the top 5 tech stocks for 2023? Technological companies’ shares have historically been able to pop after a spell of sluggish performance. We’ve seen some drops in tech stock value throughout 2022, but as of April 2023, we see tech stocks rounding the corner and coming up. Investors who have used 2022 as a buying opportunity are likely very happy with their results.
This article will review the top 5 tech stocks for 2023 that you should pay close attention to.
Table of contents:
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1) Apple (AAPL): Too Big To Ignore
In the last year, Apple took two huge plunges in June 2022 and January 2023. During that time, the stock price had dropped as much as $50. The highest was $174.55 and the lowest hovered around $125.
This encouraged investors to throw money at Apple stock, hoping to leverage the plunges as opportunities to purchase one of the biggest stocks for cheap. Apple’s stock hovers around $160 today, and experts predict a further rise.
It’s important to note that every company struggles at some point. For example, Apple struggled during the 1990s, particularly from 1993 to 1997, when its market share declined. The company faced financial losses and management problems.
Five Year Perspective Reveals Apple‘s Stock Performance is Still Strong
People thought Apple’s products were old compared to its competitors, especially in the PC market, where Windows-based computers were the most popular.
Apple’s complex product line also suffered from internal conflicts and leadership changes. Steve Jobs, who co-founded Apple but left the company in the mid-1980s, returned to the company in 1997 to lead a dramatic turnaround.
Looking at Apple’s stock from a longer, 5-year perspective, you might conclude that the last year’s performance could have been just a temporary hiccup. Today, Apple’s stock remains one of the absolute top tech stocks.
2) Microsoft (MSFT): The Artificial Intelligence Giant
Following the last year’s tech market trend, Microsoft’s stock’s performance has been similarly underwhelming.
One of the reasons why investors look to Microsoft with high hopes is that, in recent years, Microsoft has made AI a key focus of its business and has made significant investments in AI research and development. Microsoft’s AI projects include the development of technologies like machine learning algorithms, natural language processing, computer vision, and speech recognition.
Microsoft has also launched several AI-based products and services, including Azure Cognitive Services, Cortana, its virtual assistant, and the Microsoft Bot Framework. It also made some huge changes to its search engine, Bing, by enhancing it with AI.
Microsoft Stock Soars Thanks to AI–Related Projects
Microsoft is also involved in several projects and partnerships that have to do with AI. One of these is the Partnership on AI, an industry group that promotes the development of AI in a responsible way. Another is OpenAI, the AI research group behind ChatGPT and DALL-E.
No matter how you look at it, Microsoft has done well with its investors in the past. Microsoft’s stock is as good as ever because it is open to new technologies and quick to adapt to the inevitable changes that come with the growth of artificial intelligence.
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3) Amazon: Way More Than Just eCommerce
Amazon is one of the biggest online stores in the world, and it has been putting most of its efforts into improving its e-commerce platform and adding more products.
However, as you already know, Amazon is more than just an e-commerce platform. Amazon Web Services (AWS), which deals with cloud computing, has been a big part of the company’s growth over the past few years. According to Synergy Research Group, AWS holds a 32% market share of the world’s cloud infrastructure, with Microsoft Azure coming in second with a 20% share.
Cloud Computing is Where Amazon Competes with Tech Giants
AWS provides businesses and organizations worldwide with cloud-based infrastructure, storage, and computing services. AWS has become a significant revenue driver for Amazon and has helped to fuel the company’s growth.
Cloud infrastructure is one of many places where Amazon rivals other tech giants. Amazon has invested much money into artificial intelligence and machine learning, just like Microsoft has, to improve its products and services, especially in personalization and recommendation systems.
Amazon uses AI to look at customer data and behavior to make personalized product suggestions, power its voice-enabled assistant Alexa, and power other AI-driven products.
4) NVIDIA Stock: Why Buy NVIDIA Stock?
As you continue reading, you may notice a commonality between the tech stocks and their prognoses: artificial intelligence.
Nvidia has been at the forefront of making AI-specific hardware, like its Tensor Core GPUs, which are best for deep learning workloads. These GPUs allow AI models to be trained and inferred faster. This makes them an important part of creating and deploying AI solutions.
As AI continues to gain momentum and becomes more ubiquitous across various industries, the demand for Nvidia’s AI hardware and software solutions will likely grow. This has helped drive Nvidia’s stock price in recent years, making it one of the best-performing technology stocks in the market.
5) Exxon: Can The Low-Carbon Business Outperform Conventional Hydrocarbon Industry?
Of the S&P 500, Exxon Mobil has experienced the most rapid growth. This year, the energy behemoth increased almost as much as tech companies did during the boom. The market value of the energy company’s shares increased by $195 billion as shares jumped 80% this year. Exxon Mobil is now the eighth most valuable stock in the S&P 500 thanks to this increase in market value, which is more than any other stock in the index. Amazingly, it was only the 27th most-valued company in the S&P 500 a year ago.
The astonishing speed with which Exxon Mobil is returning is amazing. Since 2018, it had fallen out of the top 10 of the S&P 500 (when it was ninth). But this was previously a market leader for this company. Before Apple surpassed it in 2012, it was the most valuable S&P 500 firm as recently as 2011.
The corporation also thinks its low-carbon business might outperform its conventional hydrocarbon industry by ten years. It could then generate significant revenue. The corporation expects to invest $7 billion to assist others in reducing their emissions. This investment will be allocated to its Low Carbon Solutions business segment through 2027.
TOP 5 Tech Stocks For 2023: The Bottom Line
All stocks mentioned above have seen dips in the past year. But, have since recovered, with Apple and Microsoft, in particular, showing great promise for the future. Microsoft and Amazon have invested in AI research and development, and NVIDIA is leading the way in creating AI-specific hardware. Lastly, TSMC plays a massive role in the market by supplying chips to products from giants such as Apple, Qualcomm, Nvidia, and AMD, making it another part of the group of 5 tech stocks for 2023 trading.
Disclaimer: This article has been written for educational purposes only. None of this is financial advice and thus should not be treated as such. We highly recommend seeking professional advice before making any investment-related decisions.
