- Tech stocks are always on the rise. Many factors contribute to this, such as the increasing number of tech startups and the growing demand for tech products. This article gives you an overview of potentially profitable niche markets and some high-performing companies that provide it.
- Microchip Technology (NASDAQ:MCHP) — Microchip is a leading provider of automated machine parts, IoT devices, and automotive products.
- Salesforce (NYSE:CRM) — Salesforce is one of the leading companies in the AI revolution. They have invested heavily in algorithms that can do a wide range of work, including making sense of human languages.
- Workday (NASDAQ:WDAY) — In a world increasingly pivoting toward remote work, you cannot afford to miss Workday, a software vendor specializing in human capital management, financial management, and work-from-home support.
- Netflix (NASDAQ:NFLX) — Netflix is one of the most popular streaming services globally, and it has been growing rapidly in recent years. However, it has lost market value rapidly this year.
- Microsoft (NASDAQ:MSFT) — Microsoft is an all-weather performer that does well regardless of the state of the economy.
- DocuSign (NASDAQ:DOCU) — DocuSign is a cloud-based service that allows users to sign documents electronically. It has become the standard way of signing documents because it will enable you to save a lot of time and effort when signing papers securely online.
- Teladoc Health (NYSE:TDOC) — Teladoc Health is a telemedicine service that connects patients with doctors. It has provided medical care to people without visiting the doctor’s office for almost two decades.
Top tech stocks are the most popular stocks among investors and analysts. They have been performing well in recent years due to the growth of the internet and technology industries.
This article gives you an overview of potentially profitable niche markets and some high-performing companies that provide it.
Top Tech Stocks: Microchip Technology (MCHP)
Microchip Technology (NASDAQ:MCHP) is a highly integrated circuit on a single piece of silicon. You can use it for various purposes, such as digital circuits, sensors, and actuators.
Microchips are now being used in everything from cars to phones to computers. They have even been embedded in clothes and shoes that you wear! The future of microchips is bright, but many things still need to be improved on before they can be fully implemented into our daily lives.
One of the most important companies powering this phenomenon is Microchip Technology. Microchip is a leading provider of automated machine parts, IoT devices, and automotive products. They have their fingers in many different markets, and their product lines are growing more diverse each year.
Microchip’s recent quarterly earnings underscored the company’s continued robust performance, with record revenue, gross margin, and operating profit. Demand for its products continues to exceed supply.
It raised its dividend over the past four quarters and is expected to increase it again. The company also continues to generate profits for investors, making investing even more lucrative for everyone this year.
Salesforce (NYSE:CRM) is a company that provides tools and services to help companies manage their relationships with customers & prospects. They spare you the hassle of managing customers yourself and give you the time to work on developing your business.
Salesforce has changed the world of business significantly. The software helps companies interact with customers and manage the business process, saving a lot of time, effort, and money.
Salesforce is now one of the most widely used CRM software globally, and it is constantly innovating to stay ahead of its competition.
In the year thus far, shares have not done well. And it’s understandable why this is happening. Apart from the wider tech selloff, investors are concerned that work management software will not do well with things opening up. Despite the company’s recent slump, its growth trajectory will quell any worries about them slowing down.
Salesforce forecasts annual sales to top $50 billion in fiscal 2026, which would mean the payment is expected to jump by 17.4% over the next four years across different verticals. Therefore, Salesforce is a must when discussing hot tech stocks these days.
Top Tech Stocks: Workday (WDAY)
Workday (NASDAQ:WDAY) is an AI-based software that helps you manage your calendar and tasks. It is a helpful tool for busy people who want to stay productive without the hassle of scheduling or remember when they have to work.
Over 60 million use Workday, and it is still growing at a rapid pace. It is super simple and has features like automatic reminders and reminders based on location to ensure you never miss a meeting or deadline.
The Workday platform also has a lot of integrations with other tools like Trello, Slack, Basecamp, Google Calendar, and Outlook to integrate them into your workflow easily.
Organizations use work management systems to process the shift to a work model that is more resource-efficient and flexible. Software companies are also key players in this arena for providing these tools.
Workday’s revenues for 2020 were $3.627 billion, which is 28.52% more than the previous year. No doubt, it was an excellent year for the company. However, last year wasn’t bad either. Workday’s revenue for 2021 was $5.14 billion and $1.38 billion in Q4. Subscription revenue grew to $1.23 billion in Q4, growing 22% compared to a year ago.
Since more companies are adopting a hybrid work model, the company will continue to do well. And the results show this.
Netflix (NASDAQ:NFLX) is the world’s leading Internet TV network, and millions in 190 countries enjoy more than 125 million hours of TV shows and movies per day. It includes original series, documentaries, and feature films.
It has been a pioneer in the industry for a long time. They have been producing quality content since as far back as 2007 when they released their first TV show called “Lilyhammer.” In 2009, they made their first big move by releasing their first original series called “House of Cards,” which became an instant hit among audiences. This was followed by “Stranger Things” in 2016, which many people still love.
Netflix’s success is largely due to its original content, which has won numerous awards like Emmy Awards and Golden Globes Awards.
However, this year has not started on a great note for Netflix. The entertainment giant lost 200,000 subscribers during the January-March period, marking a significant downturn. What hurt more is that its biggest rival, Disney, saw its subscriber numbers increase by 11.8 million in its latest quarter.
There are signs of a shakeup, though. Netflix is laying off various employees across the company. The eliminated positions represent less than 2% of the streamer’s total workforce. However, it signals that the company will streamline operations moving forward.
What irks investors the most is the multibillion-dollar content budget that the streamer keeps increasing every year. If they can streamline that budget, we can expect more positive momentum for the company moving forward.
Top Tech Stocks: Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is one of the world’s largest software companies with the largest market capitalization.
Microsoft’s business strategy includes transitioning from an internal hardware-centric sales model to a cloud-first one as it seeks to shift its focus towards digital transformation.
Microsoft is still reporting double-digit growth despite so many years in business. Revenue is up 18% from last year, and the profit increased 8%. Microsoft made a strong showing on the top and bottom lines, slightly ahead of expectations. This is reflected in their fourth-quarter revenue guidance, which is robust, especially for their three business divisions.
The company has maintained a consistent revenue stream through an ongoing trend of rapid innovation while consistently investing in research and development. Whatever the economic conditions, MSFT does well. Therefore, you can rest easy when investing in this company.
DocuSign (NASDAQ:DOCU) is cloud-based e-signature software that’s becoming the standard for various applications.
Over 1 million customers spread across the world use DocuSign. They have many different types of tools to help simplify everyday life and allow for the process of doing business to be done more quickly. Despite the headwinds, DocuSign posted a modest top-line beat and in-line profits for Q4 FY 2022.
DocuSign is not just a digital signature tool but a complete suite of tools that includes e-signatures, workflow management, document security, and more. Many companies are moving to remote work models to save time and money.
Some experts argue that this model makes employees happier, more productive, and less stressed. Therefore, the company is an important lynchpin in this secular trend.
Top Tech Stocks: Teladoc Health (TDOC)
Teladoc Health (NYSE:TDOC) is a telemedicine service that connects patients with doctors. It has provided medical care to people without visiting the doctor’s office for almost two decades.
Teladoc Health is one of the leading providers of telemedicine services in the United States. They have been providing medical care to people without visiting the doctor’s office for more than a decade. Patients can access their doctors via live video and audio chat and receive personalized treatment from a team of professionals.
Teladoc Health provides patients with access to quality healthcare at an affordable cost, which allows them to focus on their health rather than worrying about how much it will cost them.
According to one research report, the telemedicine market in America is expected to be worth $25.88 billion by 2027 — an over 15% annual growth rate from 2019.
Revenue numbers for Teladoc have continued to trend upward, with an increase of 86% last year, and the number of members who signed up for healthcare services was 38% higher. Hence, although the company is growing, it still has a huge market left to exploit.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.