Tech stocks have gained big time in 2020. The process of digitization and of the world moving towards online has simply accelerated in the last few months. Traditional brick-and-mortar businesses have borne the brunt of the economic damage caused by the COVID pandemic. As an investor, you must ask yourself the question as to what are the best tech stocks to buy right now? There are many sub-sectors that one can look at. There is software, consumer electronics, cybersecurity, advertising, and hardware.
If we talk about the year 2020, then FAANG stocks have had a good year. E-commerce giant Amazon has seen its stock rise by a solid 68% since January 2nd. Facebook’s growth has been more modest at 32% while Alphabet is up 20%. Apple’s stock has risen by 53% as compared to the Nasdaq-100’s 29%. IT research company Gartner hasn’t had the best of years. It is down 20% for the year 2020. Gartner provides research information and tools that allow IT executives and CIOs of companies in making strategic decisions.
Cloud Computing Is The Future?
Another big trend happening in the technology industry is the shift from in-house servers to cloud computing. Companies like IBM, Microsoft, and SAP are making major investments in cloud, big data, and cloud computing. Data centers are also becoming important and it is the reason why AMD recently bought Xilinx for $35 billion in an all-stock deal. Cloud computing has far-reaching effects and even companies like Axon Enterprises, the maker of police and law-enforcement weapons, are going into cloud in a big way. The biggest battle, however, might be between heavyweights Amazon and Alibaba. Amazon Web Services and Alibaba Cloud are both dominant in this segment. Both companies are expanding in markets outside of their home bases.