Top 5 Best Information Technology Stocks to Invest in for 2021
As we step into 2021, the Information Technology (IT) sector is expected to grow at an exponential rate. With an increased dependency on technology due to the pandemic, online businesses have soared, and IT stocks have proven to be the best investments yielding high returns. Here is a look at the top 5 IT stocks that have significant potential to grow in the coming year.
1. Amazon.com Inc. (AMZN)
Amazon has been a dominant player in the e-commerce industry for the past decade, and its services have only continued to expand. In addition, the company’s substantial investments in the cloud computing business (Amazon Web Services) have shown significant long-term profitability. With an excellent track record and expanding services, Amazon has been rated as a ‘buy’ by most analysts.
2. Microsoft Corporation (MSFT)
Microsoft remains an excellent option for long-term investors in the IT industry. It has been constantly outperforming the market with its cloud-based solutions, Surface laptops, and gaming products. The company has also recently acquired LinkedIn- a professional networking platform – adding another valuable service to its portfolio. With a robust management team and a diversified product range, Microsoft qualifies as a must-have stock for tech investors.
3. NVIDIA Corporation (NVDA)
NVIDIA has been one of the best possible performers in the IT stock market for a while now and is expected to continue this trend in 2021. With the expansion of the gaming industry, artificial intelligence, and autonomous vehicles, NVIDIA’s graphics processing units (GPUs) have become essential. Besides, the acquisition of Arm Limited should further boost the growth potential of NVIDIA.
4. DocuSign Inc. (DOCU)
The impact of remote working due to the pandemic has accelerated the digitization of operations, where electronic signatures are becoming a necessity. DocuSign’s software provides users with the ability to sign digital documents seamlessly. The company has recorded significant growth in its customer base, revenue, and market share, with solid potential for further growth in 2021.
5. Apple Inc. (AAPL)
Apple remains the leading provider of mobile devices in the world, and its revenues continue to soar. The company’s expansion into services (such as Apple Music and Apple TV), combined with the launch of numerous new product lines (such as Apple Watch and AirPods), have proven to be significant revenue generators. Additionally, Apple’s push into the health industry with its recent announcement of Fitness+ shows that the company is still expanding its offerings and keeping up with changing trends.
Conclusion
In conclusion, with the rapid advancements in the IT industry, investors should carefully consider their investment strategies and understand how these trends can affect the performance of IT stocks. The above five companies are some of the best options for investors looking to invest in the IT sector in 2021, with the potential for significant growth and profits. However, it’s important to do your research and consider these options accordingly to ensure the best possible results.
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