Want to invest in Apple, Facebook, Google, Microsoft, and other US technology companies? Read this blog to find out all about the US tech industry and how you can buy US stocks from India.
“Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not.” - Marc Andreessen (Entrepreneur & Investor)
The US is the world’s leading centre for innovation and distribution of technology. It is lead by hubs like Silicon Valley and access to funding from leading Venture Capitalists along with government support.
Technology like computer science, IT, and more recently, Machine Learning, Artificial Intelligence, etc. have been woven into the fabric of every industry from the early 2000s.
The importance directly correlates to the allocation of budget for tech specifically across industries like financial services, healthcare, media, and entertainment. It stood at 7-7.5% in 2020 versus 4-5% in 2019. You can consult a Cube Wealth coach or Download the Cube Wealth app.
Both innovation and demand have led to an explosion in the market cap of companies like Apple, Amazon, Google, Microsoft, HP, and others. In this blog, we’ll look at 10 of these big tech companies and stocks.
15 Best US Technology Sector Stocks
“Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not.” - Marc Andreessen (Entrepreneur & Investor)
The US is the world’s leading centre for innovation and distribution of technology. It is lead by hubs like Silicon Valley and access to funding from leading Venture Capitalists along with government support.
Technology like computer science, IT, and more recently, Machine Learning, Artificial Intelligence, etc. have been woven into the fabric of every industry from the early 2000s.
The importance directly correlates to the allocation of budget for tech specifically across industries like financial services, healthcare, media, and entertainment. It stood at 7-7.5% in 2020 versus 4-5% in 2019. You can consult a Cube Wealth coach or Download the Cube Wealth app.
Both innovation and demand have led to an explosion in the market cap of companies like Apple, Amazon, Google, Microsoft, HP, and others. In this blog, we’ll look at 10 of these big tech companies and stocks.
The tech industry contributed 12% or $2.3 trillion to the US GDP in 2019. The sector generated approximately 18.2 million jobs and $1.3 trillion in wages the same year.
The US tech sector also paid $503 billion in taxes in 2019. Data for 2020 suggests that the total spending on tech across the world was $5.2 trillion of which the US spent the most - approximately 32%.
The US’ spending on tech is expected to increase by 1% in 2021 as per estimates by IDC. The expenditure is compensated by the revenue and taxes generated by global powerhouses like Apple and Microsoft.
Apple became the world’s first trillion-dollar company in 2018 and continues to rule the roost when it comes to market cap. Microsoft became a trillion-dollar company shortly after in 2019.
However, Microsoft has a stronger credit rating (AAA) than the US government. Apart from that, there are multiple small and medium-tech companies that constantly add to the GDP of the US.
Fastest growing tech in the US and the world includes:
Cloud computing
Internet of Things
Cybersecurity
Artificial Intelligence
Augmented Reality
Machine Learning
The US consistently ranks in at least the top 5 for emerging tech and favorable policies for innovation. The US is the most innovative economy in the world, a fact that’s useful for tech and healthcare. You can consult a Cube Wealth coach or Download the Cube Wealth app.
The US has three popular stock indices among others that measure the performance of tech in some way:
S&P 500 Information Technology
Dow Jones U.S. Technology Index
NASDAQ-100 Technology Sector Index
The S&P 500 Information Technology tracks 74 of the best US companies with companies like Apple, Microsoft, Intel, Adobe, etc.
Here's a snapshot of the S&P 500 Information Technology index's returns over time:
Timeline
Returns
QTD
4.11%
YTD
5.92%
1 Year
41.22%
3 Years
25.65%
5 Years
27.04%
10 Years
19.12%
Source: S&P 500 Global
Dow Jones U.S. Technology Index tracks 159 of the biggest tech companies in the US with companies like Alphabet Class A, Cisco Systems, Facebook, etc.
Timeline
Returns
QTD
5.74%
YTD
9.20%
1 Year
46.86%
3 Years
27.18%
5 Years
28.02%
10 Years
18.63%
Source: S&P 500 Global
NASDAQ-100 Technology Sector Index tracks shares offered by 100 of the biggest tech companies in the US.
Timeline
Returns
YTD
6.95%
1 Year
47.84%
3 Years
24.82%
5 Years
29.27%
Source: YCharts
The US tech indices have performed well over the past 10 years. However, there are too many stocks to pick from within each index. A platform like Cube Wealth simplifies this process.
How To Invest In US Technology Stocks From India?
Broadly speaking, there are two ways to invest in US technology stocks from India. One involves using brokerage apps while the other is through international mutual funds. Here's the flow of investing in US technology stocks using a brokerage app:
1. Download app
2. Complete your KYC
3. Finish LRS formalities
4. Transfer money to brokerage account
5. Invest in US tech stocks
Investing in international mutual funds is relatively easy compared to buying US technology stocks directly. All you have to do is:
1. Download mutual fund app/visit AMC website
2. Complete your KYC
3. Pick an international fund that has US technology stocks
4. Start investing
Investing in stocks on your own can be tricky, especially considering the US is a foreign market. Thus, you must exercise caution before investing your hard earned money into US technology stocks.
FAQs
1. What are some top US technology companies to consider for investment?
Ans. Some top US technology companies include Apple, Microsoft, Amazon, Facebook (Meta Platforms), Google/Alphabet, Tesla, NVIDIA, and many others. The choice depends on your investment goals and risk tolerance.
2. How can I stay informed about the latest developments in the US technology sector?
Ans. You can stay informed by regularly reading financial news, following technology-related publications, and monitoring the performance of technology sector exchange-traded funds (ETFs). Additionally, quarterly earnings reports and company announcements provide valuable insights.
3. Are US technology stocks suitable for long-term or short-term investments?
Ans. US technology stocks can be suitable for both long-term and short-term investments. Long-term investors may benefit from the sector's potential for growth and innovation, while short-term traders can take advantage of volatility for shorter-term gains.
4. What is the historical performance of US technology sector stocks?
Ans. Historically, US technology sector stocks have shown strong growth and outperformance compared to other sectors. However, past performance does not guarantee future results, and the sector can be subject to significant market fluctuations.
Conclusion
Considering investment in leading US technology sector stocks can be an enticing prospect for those looking to be part of the dynamic world of innovation, growth, and the continuously evolving digital realm. Over the years, technology firms have consistently played a pivotal role in propelling economic change, and their stocks have often exhibited impressive performance.
Nevertheless, it is imperative for potential investors to emphasize meticulous research and contemplate their investment objectives, risk tolerance, and investment horizon meticulously prior to delving into technology sector equities. Opting for diversification not only within the sector but also across various industries is a prudent strategy to minimize exposure to potential risks.
If you need help, you can always turn to reliable advisors like RIA Rick Holbrook on Cube. Watch this video to know more about US stock advice on Cube Wealth. You can consult a Cube Wealth coach or Download the Cube Wealth app.
Note: All facts & figures mentioned in the tables above have been collated from publicly available sources. Facts & figures are accurate as of 01/06/2021. The companies mentioned in the tables are listed in no particular order and are a reflection of US' most popular technology sector brands at the moment. Cube Wealth does not recommend purchasing stocks based on popularity alone and suggest you consult a Wealth Coach before putting your hard-earned money into any asset.
FAQs
1. What are some top US technology companies to consider for investment?
Ans. Some top US technology companies include Apple, Microsoft, Amazon, Facebook (Meta Platforms), Google/Alphabet, Tesla, NVIDIA, and many others. The choice depends on your investment goals and risk tolerance.
2. How can I stay informed about the latest developments in the US technology sector?
Ans. You can stay informed by regularly reading financial news, following technology-related publications, and monitoring the performance of technology sector exchange-traded funds (ETFs). Additionally, quarterly earnings reports and company announcements provide valuable insights.
3. Are US technology stocks suitable for long-term or short-term investments?
Ans. US technology stocks can be suitable for both long-term and short-term investments. Long-term investors may benefit from the sector's potential for growth and innovation, while short-term traders can take advantage of volatility for shorter-term gains.
4. What is the historical performance of US technology sector stocks?
Ans. Historically, US technology sector stocks have shown strong growth and outperformance compared to other sectors. However, past performance does not guarantee future results, and the sector can be subject to significant market fluctuations.
Conclusion
Considering investment in leading US technology sector stocks can be an enticing prospect for those looking to be part of the dynamic world of innovation, growth, and the continuously evolving digital realm. Over the years, technology firms have consistently played a pivotal role in propelling economic change, and their stocks have often exhibited impressive performance.
Nevertheless, it is imperative for potential investors to emphasize meticulous research and contemplate their investment objectives, risk tolerance, and investment horizon meticulously prior to delving into technology sector equities. Opting for diversification not only within the sector but also across various industries is a prudent strategy to minimize exposure to potential risks.
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
Thanks For Subscribing!
We'll send you interesting emails about exciting investment options.
Oops! Something went wrong while submitting the form.
A data-backed, personalised MF review—delivered discreetly to your
inbox.
Upload CAS
We’ll email your personalised mutual fund review in a few days—our
experts, who have 40+ years of experience, go beyond quick
algorithms to deliver deep, customised insights.
To get recommendations aligned with your goals, fill out your risk
profile
here.
For any questions, feel free to reach us at wealth@bankoncube.com
