Top 5 Best Information Technology Stocks for Investing in 2021
Introduction:
The year 2020 was a year of turbulence and uncertainty for the stock market due to the COVID-19 pandemic. However, the technology sector emerged as a winner as the pandemic led to an accelerated digital transformation, resulting in significant growth and increased revenue for technology companies. With 2021 marking a new year, investors are eying the tech industry for potential growth and profitability. In this article, we bring you the top 5 information technology stocks that are expected to deliver high growth and returns in 2021.
1. Amazon
Amazon has long been considered a giant in the retail industry, but with their focus on digital offerings, it is now a leading technology company as well. Despite market volatility in 2020, Amazon grew its net sales by 37% in the third quarter, driven by their cloud technology business, Amazon Web Services. With increasing demand for cloud services, Amazon is expected to continue its growth trajectory in 2021.
2. Alphabet Inc.
Alphabet, the parent company of Google, has consistently been one of the most profitable technology companies in the world. Despite antitrust regulation concerns, Alphabet’s revenue in Q3 of 2020 grew by 14% YoY, driven primarily by advertising revenue. The company’s continued investments in artificial intelligence and big data analytics are expected to further enhance its growth and profitability in 2021.
3. Microsoft Corporation
Microsoft has transformed into a tech giant driven by cloud and subscription services, with its cloud computing business Azure contributing significantly to its growth in 2020. Additionally, with the increased integration of Microsoft’s products across personal, gaming, and business applications, they are set for continued success in 2021.
4. NVIDIA Corporation
NVIDIA is a leading player in the graphics processing unit (GPU) industry and is rapidly expanding into artificial intelligence, machine learning, and autonomous vehicles. The company’s revenue in Q3 2020 increased by 57% YoY, driven by the growth of gaming, datacenter, and professional visualization platforms. NVIDIA’s focus on innovation in high-growth areas makes it an attractive option for investors looking to invest in the technology sector.
5. Zoom Video Communications Inc.
Zoom Video Communications experienced unprecedented growth in 2020 due to the COVID-19 pandemic, with its revenue increasing by 355% YoY in Q2 2020. With remote work and distance learning remaining popular in 2021, Zoom is expected to continue its upward trajectory as video conferencing and collaboration solutions are still in high demand.
Conclusion:
The technology sector, despite market volatility, has shown resilience and growth, offering investors significant opportunities for profit potential in 2021. The top 5 information technology stocks mentioned above are expected to continue their success in 2021, driven by strong fundamentals and innovation in high-growth areas. As with any investment, it’s important to conduct thorough research and consult with a financial advisor before making any investment decisions.
