Last year marked a spectacular rebound for many tech stocks, as they reversed the downturn experienced in 2022. The tech-focused Nasdaq Composite surged by 43%, outshining the S&P 500 and Dow Jones.
Despite the overall success of tech stocks in 2023, a select few stand out as compelling long-term investment opportunities. These three tech stocks are primed to be valuable additions to the portfolios of investors.
1. Taiwan Semiconductor Manufacturing Company
The role of Taiwan Semiconductor Manufacturing (TSMC) may be underappreciated, but it is the world’s largest semiconductor foundry. Semiconductor chips, pivotal to today’s electronics, form the core business of TSMC. As the go-to manufacturer for companies like Apple, Tesla, and Nvidia, TSMC’s influence is far-reaching.
TSMC experienced a stock rebound in 2023, driven in part by the hype around artificial intelligence (AI) in the tech industry. However, the anticipated rebound in the smartphone and PC markets, where TSMC’s chips have a significant presence, is expected to further fuel its revenue growth.
While there are several prominent semiconductor companies, none can match TSMC’s chipmaking expertise. It is a company fit for the long haul, exuding a sense of trust and resilience to investors.
2. Microsoft
Microsoft, which surged by nearly 62% in 2023 and surpassed Apple as the world’s most valuable public company, is a tech giant with diversified interests. With a significant presence in enterprise and consumer software, cloud computing, gaming, and AI, Microsoft possesses a commanding position across multiple industries.
All three of Microsoft’s broad business segments exhibited year-over-year revenue growth in the first quarter of its fiscal year 2024. Its Azure cloud platform, in particular, has witnessed steady market share growth, signaling encouraging prospects for the company.
Microsoft’s well-rounded nature affords shareholders stable and substantial value, as it is not overly reliant on any single segment.
3. CrowdStrike
Cybersecurity firm CrowdStrike has been a rollercoaster ride for investors since its initial public offering in June 2019. After significant fluctuations, the company made a robust 142% surge in 2023, nearing all-time peak values.
CrowdStrike has been at the vanguard of AI-native cybersecurity solutions, a factor contributing to its 2023 gains. The company’s performance, exemplified by a 35% year-over-year revenue increase and substantial annual recurring revenue growth, underscores its substantial presence in the cybersecurity realm.
While investing in CrowdStrike may come with volatility, the company exhibits the potential for long-term success, offering investors an exciting prospect in the cybersecurity industry.
These three tech stocks highlight the diverse opportunities available for investors in the current market landscape. Their resilience and potential for long-term growth present compelling arguments for investors to explore further.
Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, CrowdStrike, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool has a disclosure policy.