Investing in Technology
Machine learning, artificial intelligence, virtual reality, blockchain, 5G… these are just some of the things that come to mind when we look at emerging modern technologies. The Fourth Industrial Revolution is certainly well underway. Staying up to date on the latest tech trends and inventions is absolutely critical for investors this year and moving forward.
Thinking of Investing in Technology?
If you‘re interested investing in technology, look no further than our Tech Stocks hub page. Here we discuss how technology has not only opened new doors to investors, but also has increased the speed at which wealth is built.
Profit Trends’ Energy Expert David Fessler says, “The cloud just keeps getting bigger, and there are plenty of technology companies riding this gravy train. Medical technology is also growing rapidly. New software startups will be tomorrow’s public winners. It’s one of my big focus areas for the next five years.”
Whether it‘s renewable energy, infrastructure or medical technology, Fessler is always up to date on the latest and greatest technology trends. Sign up for Profit Trends below to stay in the loop.
Cloud Computing and AI Technology
Cloud computing offers opportunities for investments in an area that already accounts for “almost 60% of total U.S. technology spending.” The technology allows companies to pay for software subscriptions and rent computer power online instead of trying to match it with their servers.
MoneyWeek projects big wins for the industry giants as multinationals “seek help” in moving their data across multiple clouds. However, smaller companies that can produce a dominant platform may deserve consideration as well.
Artificial intelligence may interest investors who want to know what to prioritize for investing. Google’s parent company, Alphabet (Nasdaq: GOOGL), relies on it for “obvious applications like Google Assistant” and auto-generating data that helps users write faster emails. Alphabet’s 26% year-over-year revenue growth in the second quarter exceeded expectations.
Technology Stocks to Invest In
- NetApp (Nasdaq: NTAP) develops cloud hardware that assists customers in building and running applications on Google Cloud with efficient capabilities. As a Fortune 500 company, NTAP provides cloud and data management services to more than 30 leading enterprises in the oil and gas industry, the life sciences field, and the media and entertainment field.
- Seagate Technology (Nasdaq: STX) provides cloud hardware as a U.S.-based data storage company. STX has earned a reputation as the “world’s second-largest maker of hard disk drives” and other storage products. Some of the biggest names in cloud infrastructure appear on the company’s client list, including Amazon, Google, Apple and Facebook. The increasing demand for cloud computing hardware may give investors some ideas for what to invest in in 2020.
- Splunk (Nasdaq: SPLK) “turns data into strategy” by making it accessible to users within organizations. The SPLK software identifies data patterns, diagnoses problems and generates intelligence. The management of digital data creates a “top priority” for enterprises that may accumulate 44 times more data in 2020 than in the past decade. The company experienced double-digit growth in 2018 as companies struggled to interpret massive amounts of data. Software as a service (SaaS) provides a specialty for companies that profit from the sale of cloud-based software. The Motley Fool cites two market-leading SaaS enterprises whose customer relationship or customer support platforms require payment of recurring fees.
- Salesforce.com (NYSE: CRM) experienced “extraordinary revenue growth,” with a climb of 25% in its most recently reported quarters year over year.
- Zendesk (NYSE: ZEN), a customer service platform, produced even better results, with a 39% climb during the same period. In the field of robotics, rapidly improving technologies provide opportunities for artificial intelligence companies and enterprises that focus on machine learning, the Internet of Things and semiconductors.
- Intuitive Surgical (NASDAQ: ISRG) developed the minimally invasive surgical robot da Vinci. The company saw remarkable 20% year-over-year revenue growth in Q2.
- iRobot (NASDAQ: IRBT) makes the product that investors may recognize as an innovation from the manufacturer of the Roomba robotic vacuum. The company performed a little better than Intuitive Surgical, with 24% growth during the same period.
Start Investing in Technology Today
A few hundred dollars invested in Amazon back in 1997 would have made you a millionaire today. Massive gains would have come from investments in Facebook, Microsoft and Intel as well. Whether you’re investing in technology or any other sector, it’s important to get started now.
As Bill Gates said, “Investing in tomorrow’s technology today is more critical than ever.“ Get started now by signing up for the free Profit Trends e-letter below.
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