Top 5 Best Information Technology Stocks to Invest in 2021

Introduction

Information technology (IT) has become one of the most dynamic and rapidly evolving sectors, with companies delivering innovative solutions to meet the growing demand for digital services. Investing in the right IT stocks can be a wise financial decision, with the potential for good returns in the long run. In this article, we will discuss the top 5 best information technology stocks to invest in 2021.

Apple Inc.

Apple Inc. (AAPL), one of the most renowned brands in the world, is a leading player in the IT industry with a market capitalization of over two trillion dollars. The company’s products such as iPhones, iPads, Macs, and Apple Watches are hugely popular among consumers. Additionally, Apple is set to gain from its growing services business, which includes the App Store, Apple Music, iCloud, and Apple TV+. With the company’s proven track record of innovation and remarkable customer loyalty, investors can expect significant capital appreciation in the long term.

Microsoft Corporation

Microsoft Corporation (MSFT) is another big name in the IT industry, with a market capitalization of over 1.6 trillion dollars. The company is renowned for its operating system, Microsoft Windows, which is used by over a billion people across the world. Microsoft’s cloud computing service, Azure, is one of the fastest-growing cloud providers, with a year-over-year growth rate of over 50%. With a broad range of products and a stable financial position, Microsoft Corporation is an excellent investment opportunity.

Amazon.com, Inc.

Amazon.com, Inc. (AMZN), regarded as the largest online retailer globally, is also making waves in the IT sector. The company’s cloud computing service, Amazon Web Services (AWS), is currently the market leader, accounting for over 30% of the cloud infrastructure services market. Amazon is also expanding into healthcare, entertainment, and artificial intelligence, with products like the Amazon Echo and Alexa digital assistant. With strong financials, outstanding fundamentals, and excellent growth prospects, Amazon.com, Inc. is a great pick for long-term investors.

Taiwan Semiconductor Manufacturing Co., Ltd.

Taiwan Semiconductor Manufacturing Co., Ltd. (TSM) is the largest semiconductor manufacturing company in the world, having a market capitalization of over 550 billion dollars. The company provides foundry services to leading chip designers, including Apple, Nvidia, and Qualcomm. Additionally, the company has a strong position in the 5G and AI markets, where it’s expected to experience high growth in the coming years. With reliable earnings, robust financials and excellent market positioning, Taiwan Semiconductor Manufacturing Co., Ltd. offers a sound investment opportunity for long-term investors.

Oracle Corporation

Oracle Corporation (ORCL), one of the largest enterprise software companies globally, has a market capitalization of over 190 billion dollars. The company provides solutions in database management, enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM). Oracle has a dominant market share in enterprise solutions, which has high barriers to entry. Moreover, the company has been expanding into cloud infrastructure and autonomous database services. With consistent financial performance, a reasonable valuation, and good growth prospects, Oracle Corporation is an excellent stock to consider for long-term investors.

Conclusion

In conclusion, investing in IT stocks can be a smart financial decision, providing a chance to profit from the robust growth in the sector. Apple Inc., Microsoft Corporation, Amazon.com, Inc., Taiwan Semiconductor Manufacturing Co., Ltd., and Oracle Corporation are some of the top-performing companies in the IT industry, with sound fundamentals, robust financials, and strong growth prospects. However, investors should always conduct their research and adhere to their investment strategies while investing in the stock market.