Here are the best US tech stocks to invest in 2021. Investors like investing and trading tech stocks because of their growth potential. A lot of the most successful companies in the world are also tech companies.
Why should you invest in tech stocks?
Many investors are attracted to trade tech stocks because of their ability to skyrocket in value. Those big profiteers and millionaires on Wall Street invested in tech companies over the last decade.
One of the best performing indices in the world, NASDAQ 100, is also composed of tech stocks. The world continues to innovate, and technology is an essential factor in how we will thrive in the future.
Risks of Investing Tech Stocks
While tech stocks can produce profitable returns, they can also be extremely volatile than other sectors in the stock market. Their stocks could surge in a day then plunge when you least expect it.
Tech companies must continue to upgrade and invent new state-of-the-art platforms to stay in a highly competitive and innovative world.
It is also important to consider the financial stability of a tech company before investing. Is it making a consistent profit? Does it have a strong balance sheet? Get to know its major clients, company guidance, target projects, and future ventures.
Best US Tech Stocks to Invest in 2021
1. Tesla (TSLA)
Tesla is the king of the EV market. It is one of the best performing US tech stocks. They have very sophisticated technology to create the best electric cars in the world. Besides, Tesla has a goal to accelerate the world’s transition to sustainable energy.
As of this writing, 1-Year Return of Tesla stock is 794.07%. We’re confident that TSLA stock will continue to grow and will reach its trillion market cap soon. Tesla is both listed on the S&P 500 and NASDAQ 100.
If you believe that the future of EV, sustainable energy, and Tesla will continue to flourish, then it’s one of the best tech stocks to invest right now. Let’s see its growth in 5 years or 10 years from now.
2. Lemonade (LMND)
Lemonade is an AI-powered insurance platform built for the 21st century. The company became one of the most successful IPOs in 2020. Shares have gone up over 300% since its IPO.
Why so? Because you can get insured in 90 seconds, claim, and get paid in 3 minutes by just using their app. Lemonade uses Artificial Intelligence to craft personalized insurance policies instantly. Unused money is given back to causes and non-profit organizations. People liked it so much!
The company is backed by giants, including Japanese tech investor SoftBank. Revenue is forecast to grow by 30.89% per year. Lemonade had over 1 million active customers in 2020, and it’s expected to grow this year, 2021.
Although Lemonade is not currently profitable and is forecast to remain unprofitable over the next three years, it’s still undeniable that its strategy is genius. So, in my opinion, it’s good to invest when the opportunity strikes or when a tech market crash occurs.
3. Snowflake (SNOW)
Snowflake is a cloud-based data platform, analytics, SaaS, and software company. Last September, Snowflake broke the record and became the biggest software company to IPO in the US. Its value doubled on its opening day, reaching nearly $75 billion market cap.
Snowflake is among the top tech stocks I’d like to watch in 2021 because of its data cloud business servicing 65 firms paying more than $1 million.
If Warren Buffett’s Berkshire Hathaway invested a massive stake in Snowflake, I’d like to invest in SNOW, too, especially when the stock falls below 200. Snowflake’s current price is not cheap, in my opinion.
4. NVIDIA (NVDA)
NVIDIA is one of the world’s top inventors of high-tech Graphical Processing (GPU). They have business interests in gaming, professional visualization, data center, and automotive.
NVIDIA has impressive Net Income with Compound Annual Growth Rates of 58.69% (YoY), 14% (3Y), and 44.85% (5Y).
I believe that NVIDIA will continue its strong growth, so I’m investing in NVDA stocks for long term. Of course, I will be buying more when the stock dips below 470.
5. Trade Desk (TTD)
Trade Desk is a media-buying platform built for the open internet. It empowers ad buyers and enables companies to achieve ad campaigns.
If you invested in Trade Desk stock one year ago, you would have a profit of 179%. Price return for three years is 1,562%.
The stock went below its 50-day simple moving average this week. I think it’s a fair price to enter and buy some shares. I like trading this stock, both long and short term.
6. DocuSign (DOCU)
DocuSign is the world’s number 1 eSignature and Agreement Cloud provider. DocuSign Agreement Cloud technology enables customers to electronically sign documents from any device and location at any time.
18 of the top global pharmaceutical companies, 10 of the top global financial companies, and 7 of the top tech companies use DocuSign. The company has over 100 million users worldwide; around 822,000 are paying customers.
Paperless transaction is growing. Although DocuSign has substantial growth in billings and revenue, increasing customer base, and improving profitability and cash flow, it is not yet profitable.
However, its clients’ consistent growth and revenue make this company suitable to invest for long-term stockholders. Dollar-cost-averaging will work as a strategy.
7. Teladoc Health (TDOC)
Teladoc Health is a global telemedicine and virtual care provider helping millions of people resolve their healthcare needs. Since its IPO in 2015, TDOC’s revenue has been consistently increasing every year.
Teladoc achieved more than 5 million mobile app downloads. It’s now available in 175 countries and 40 languages. With its accelerating growth and customer reach, TDOC has immense potential for long term investment.
8. Amazon (AMZN)
Amazon is a giant retail internet and cloud services company. It’s among the largest companies in the US in terms of revenue and market capitalization. AMZN currently has more than 1 trillion market cap.
Amazon is one of my best US tech stocks to invest in 2021 and one of my best stocks to invest for long term. I’m committed to keeping my shares of AMZN for five years or more.
9. Square (SQ)
Square is an online payments company that offers point-of-sale solutions, analytics, and reporting tools for any kind of business (big or small).
Square’s two important platforms include the Seller Ecosystem and Cash App. They provide fast and secure technology to accept every kind of payment (in person or online).
This fintech company continues to invent a unique ecosystem of products and services. Because of that strategy, their customers are growing. And so are their recurring income. Their seller ecosystem represents more than $85 billion opportunities in the US alone.
10. Apple (AAPL)
Apple is one of the most popular technology brands in the world. Its inventions include the Macintosh, iPhone, iPad, Apple TV, iOS, and many more. It is the first US tech company that reached the trillion-market cap (now it has more than 2 trillion).
Apple stock is listed on the Big 3 US indices – S&P 500, NASDAQ 100, and Dow Jones. It is one of the most innovative companies in the world. It is planning its electric car project by 2024. Will it be iCar?
11. Microsoft (MSFT)
Microsoft is a computer software, cloud, and Artificial Intelligence company. The company co-founded by Bill Gates now has a 1.6 trillion market cap. Its business segments include Skype, LinkedIn, GitHub, and Xbox Game Studios.
Microsoft is one of the best tech stocks that reward dividends to their shareholders. It reported revenue of 143 billion and net income of 44 billion in 2020. We like investing in stable companies like Microsoft. We think it will remain a powerhouse in the tech industry.
12. Autodesk (ADSK)
Autodesk is a global leader and maker of software for architecture, engineering, construction, media, and entertainment. Their products include AutoCAD, BIM 360, Civil 3D, Fusion 360, Inventor, InfraWorks, Maya, Revit, PlanGrid, and many more.
The company’s total revenue in 2020 increased by 27% to $3.27 billion, and the total subscription base grew to $4.9 million users. Autodesk’s goals for 2023 are impressive and realistic.
13. Shopify (SHOP)
Shopify is a cloud-based commerce platform to start, run, and grow a business. It currently powers more than 1 million businesses worldwide. It’s the second-largest eCommerce platform in the US by sales volume.
What I like about Shopify is it has a strong balance sheet, and it has a recurring revenue business model. The more businesses use their platform, the more subscription revenue it will collect.
Although Shopify is currently overvalued, earnings are forecast to grow 41% per year. Let’s see our profit in 2030.
14. PayPal (PYPL)
PayPal is a fintech company that enables digital and mobile payments. It is available in more than 200 markets around the world. PayPal has over 275 billion market cap and is among the top stocks on the NASDAQ 100 and S&P 500.
PayPal now allows its US clients to be able to buy, hold, and sell cryptocurrencies. Cashless transactions and digital transformation are growing. I think that PayPal is well-positioned among the top leaders of online payment platforms of the future.
15. Salesforce.com (CRM)
Salesforce is the world’s number 1 cloud-based Customer Relationship Management (CRM) platform by revenue. More than 150,000 companies across the globe use Salesforce CRM.
It delivers consistent revenue growth, with $17.1 billion in 2020. Revenue is forecast to grow 16.21% per year. We always see upside potential with CRM stock.
16. Advanced Micro Devices (AMD)
AMD creates high-performance computing, graphics, and visualization technologies. It’s always one of the best performing chipmaker stocks. Price return is 97% for one year and 670% for three years.
AMD’s investor presentation is inspiring. They focus on the next five years of journey and leadership in large and growing markets with $79 billion. If it beats expectations, I think this stock could reach 100 this 2021.
17. Netflix (NFLX)
Netflix is the world’s leading streaming entertainment service. It has over 195 million paid subscribers in over 190 countries. If you are one of them, I’m sure you know how easy and straightforward it is to use the platform for watching TV series, movies, and documentaries.
We know that Netflix has grown so big, but there is still room for growth as it approaches having more than 200 million subscribers. It has a strong balance sheet, and earnings are forecast to grow 26% per year. Definitely, a long-term growth tech stock to invest right now.
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Disclaimer: This article is for information purposes only should not be considered as a piece of professional investment advice. Every investor has different risk profile and goals. Always do your own research before investing and trading in the stock market. Past performance does not guarantee future result.