Investors are always looking for the best tech stocks. Technology makes the world go ‘round, and everyone wants to be a part of it. New companies and new technology are constantly popping up to provide investment opportunities. Below is a list of some of the top tech stocks on the market today.

The 5 Best Tech Stocks

Microsoft (Nasdaq: MSFT)

Bill Gates founded Microsoft in 1975. The company is headquartered in Redmond, Washington. Microsoft develops, manufactures, and sells computer software, consumer electronics and related services. It’s Amazon’s top competition for cloud services. It’s also is in the gaming business with the Xbox.

As more people work from home, Microsoft’s services are positioned to benefit. In the second quarter of 2020, Microsoft’s cloud service, Azure, saw revenue increase 47%. And Xbox content and services’ revenue increased 65%. The company also drew attention from its offer to buy TikTok, a Chinese video content platform.

Microsoft is often referred to as one of the best tech stocks. Over the last three years, Microsoft’s revenue growth was 14%. It went from $110.4 billion in 2018 to $125.8 billion in 2019. Its net income also increased by about 20%. It jumped from $16.6 billion in 2018 to $39.25 billion in 2019. Analysts expect Microsoft’s 2020 net income to increase with its revenue.

Adobe (Nasdaq: Adobe)

John Warnock and Charles Geschke founded Adobe in 1982. Adobe is a computer software company based in San Jose, California. Its main focus is multimedia and creativity software products. But more recently, the company started creating digital marketing software as well. Adobe is behind Photoshop, Illustrator, Acrobat and Premiere Pro. The company has a cloud-based software-as-a-service.

Over the last three years, Adobe’s revenue grew 24%. It went from $7.3 billion in 2017 to $11.2 billion in 2019. Adobe also saw steadily increasing net income, growing 36.2%. In 2017, net income was $1.7 billion. In 2018, it increased to $2.6 billion. And for 2019, the company reported almost $3 billion for net income.

Adobe is a household name in creative professions. And as the world becomes more digital, the company could see an increased demand for its products.

Amazon (Nasdaq: AMZN)

Jeff Bazos founded Amazon in 1994. The company focuses on e-commerce, cloud computing, digital streaming and artificial intelligence. In 2015, Amazon surpassed Walmart as the most valuable retailer in the U.S. by market capitalization. And in 2017, it acquired Whole Foods in a $13.4 billion deal. Some of its services include:

• Amazon Prime: delivery service
• Amazon Music: music streaming service
• Prime Video: video streaming service
• Amazon Studios: film and television studio
• Amazon Web Service (AWS): cloud-computing service

Amazon’s financials show great growth over the last three years. In 2017, revenue was $177.8 billion. In 2018, revenue saw a large increase to $232.9 billion. And it continued to grow in 2019, reaching $280.5 billion. The company’s net income also increased. Net income in 2017 was $3 billion. In 2018, Amazon saw a large increase again when net income was reported at $10 billion. And in 2019, it was $11.6 billion. Overall, Amazon’s net income had growth of 70% over the last three years.

It’s not a surprise Amazon is named one of the best tech stocks. During the coronavirus crisis, Amazon’s business increased greatly due to an increased demand for delivery services of goods.

STMicroelectronics (NYSE: STM)

STMicroelectronics is a French-Italian electronics and semiconductor manufacturer. Its headquarters are in Geneve, Switzerland. The company boasts its title of Europe’s largest semiconductor chip maker, according to revenue. STM chips are used in the automotive sector to power electric vehicles. The company also makes products for smartphones and data center power solutions switching to 5G.

Over the last three years, STM saw a bit of a downtrend. Revenue went up from $8.4 billion in 2017 to $9.7 billion in 2018. But in 2019, revenue decreased to $9.6 billion. Overall, revenue had a three-year growth of 11%. Net income followed a similar pattern. In 2017, net income was $800 million. And in 2018, it grew to $1.3 billion. But like revenue, net income decreased in 2019 to just over $1 billion. Overall, net income’s three-year growth is 84%.

Some analysts identify STM as one of the best tech stocks because they think STM will see growth in the future. Its technology will be more relevant as more electric vehicle companies bring their products to market and more companies transition to 5G.

Qualcomm (Nasdaq: QCOM)

Irwin Jacobs founded Qualcomm with six other former Linkabit employees in 1985. The name means “quality communications.” It creates intellectual property, semiconductors, software and wireless technology services. Analysts name it one of the best tech stocks because its product will help bring technology to the next level: 5G.

Qualcomm faced a number of legal battles over the years. It recently resolved its licensing battle with Chine company Huawei. Qualcomm will receive a $1.8 billion payment from the Chinese firm for outstanding fees. It also resolved a legal battle with Apple that started in 2017.

Qualcomm’s finances saw a big dip in 2018. Revenue in 2017 was $22.3 billion. It increased to $22.7 billion in 2018 and $24.3 billion in 2019. But net income didn’t follow the same pattern. In 2017, net income was $ 2.5 billion. But in 2018, the company recorded a net loss of $4.9 billion. Fortunately, financials improved in 2019 where net income was $4.4 billion.

Now that Qualcomm resolved its biggest legal issues, analysts expect those numbers to trend upward. And as more companies switch to 5G, Qualcomm will see increased demand for its products.

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