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What are US Tech Stocks?

The tech industry comprises businesses that build software and sell software, electronics, computers, and artificial intelligence (AI) services. It also includes companies dealing in other fields related to information technology (IT). The technology sector has been the biggest contributor to the country’s GDP.

The new disruptive technologies, digitalization, AI, and others are driving the industry. The tech stocks are leading the markets with abundant talent and adequate resources. Some of the popular names in the sector include Alphabet Inc. (Google), Meta (Facebook), Apple, Microsoft, Amazon and Netflix. 

List of Best U.S. Tech Company Stocks to Buy in 2024

1) Microsoft Corporation (MSFT)

Established in 1975, with headquarters in Redmond, Washington, Microsoft is a multinational technology powerhouse. They develop and license software (Windows O.S., Microsoft Office), consumer electronics (Xbox gaming consoles), and personal computers. Microsoft Azure provides cloud computing services, while their LinkedIn platform connects professionals globally.

  • Marketcap: 3.14T
  • EPS: 11.53
  • PE Ratio: 36.70
  • Price/Book: 12.22
  • Forward Dividend Yield: 3.00 (0.72%)
  • Profit Margin: 36.43%
  • Operating Margin: 44.59%

2) Apple (APPL)

Founded in 1976 in Cupertino, California, Apple is a global technology leader designing, manufacturing, and selling innovative electronic devices, software, and online services. Their iPhone, iPad, Mac computer, and Apple Watch are iconic, while the iOS operating system and App Store power a vast mobile ecosystem. Apple Pay allows contactless payments, and iCloud provides cloud storage solutions.

  • Marketcap: 2.98T
  • EPS: 6.43
  • PE Ratio: 30.45
  • Price/Book: 40.17
  • Forward Dividend Yield: 1.00 (0.51%)
  • Profit Margin: 26.31%
  • Operating Margin: 30.74%

3) Alphabet Inc. (GOOGL)

Alphabet was founded in 1998 in Mountain View, California. It is the parent company of Google, the world’s leading search engine. Beyond search, Google’s products and services range from Gmail email, Android mobile operating system, YouTube video platform, Google Chrome web browser, and Google Cloud cloud computing services. Alphabet invests in various moonshot projects through X lab, exploring areas like autonomous vehicles (Waymo) and life sciences (Verily).

  • Marketcap: 2.17T
  • EPS: 6.52
  • PE Ratio: 26.90
  • Price/Book: 7.33
  • Forward Dividend Yield: 0.80 (0.46%)
  • Profit Margin: 25.90%
  • Operating Margin: 32.52%

4) NVIDIA Corporation (NVDA)

NVIDIA’s headquarters is in Santa Clara, California, and was established in 1993. It is a leader in graphics processing units (GPUs) for the gaming and professional markets. Their high-performance GPUs are essential for computer graphics, artificial intelligence, and scientific computing applications. NVIDIA also manufactures gaming consoles like the NVIDIA Shield and develops software for the gaming industry.

  • Marketcap: 3.01T
  • EPS: 17.12
  • PE Ratio: 71.52
  • Price/Book: 58.28
  • Forward Dividend Yield: 0.40 (0.03%)
  • Profit Margin: 53.40%
  • Operating Margin: 64.93%

5) Broadcom Inc. (AVGO)

Founded in 1991 with its headquarters in San Jose, California, Broadcom is a major semiconductor and infrastructure software company. They design and manufacture a wide range of semiconductors for wired and wireless communication, networking equipment, and data centre applications. Broadcom’s infrastructure software solutions help businesses manage complex networks and I.T. systems.

  • Marketcap: 645.85B
  • EPS: 26.88
  • PE Ratio: 52.57
  • Price/Book: 8.77
  • Forward Dividend Yield: 21.00 (1.58%)
  • Profit Margin: 29.93%
  • Operating Margin: 31.76%

6) Meta Platforms Inc. (META)

Established in 2004 with its headquarteres in Menlo Park, California, Meta Platforms is a leading social media and technology conglomerate. Their social networking platforms like Facebook, Instagram, and WhatsApp connect billions of users globally. Meta invests heavily in virtual reality (Meta Quest headsets) and augmented reality technologies, shaping the future of communication and entertainment.

  • Marketcap: 1.25T
  • EPS: 17.36
  • PE Ratio: 28.52
  • Price/Book: 8.09
  • Forward Dividend Yield: 2.00 (0.42%)
  • Profit Margin: 32.06%
  • Operating Margin: 38.58%

7) Oracle Corporation (ORCL)

Established in 1977 and headquartered in Redwood Shores, California, Oracle is a multinational computer technology corporation specializing in enterprise software products. Their flagship product is the Oracle Database, a powerful relational database management system used by businesses worldwide. Oracle also offers cloud computing services, customer relationship management (CRM) software, and enterprise resource planning (ERP) software solutions.

  • Marketcap: 337.05B
  • EPS: 3.79
  • PE Ratio: 32.36
  • Price/Book: 58.69
  • Forward Dividend Yield: 1.60 (1.33%)
  • Profit Margin: 20.27%
  • Operating Margin: 28.98%

8) Cisco Systems Inc. (CSCO)

Founded in 1984 and with headquarters in San Jose, California, Cisco is a global leader in networking equipment for the internet. They design, manufacture, and sell networking hardware, software, and services that connect devices and networks worldwide. Cisco’s routers, switches, and security solutions are essential for data communication across the internet and corporate networks.

  • Marketcap: 185.40B
  • EPS: 2.96
  • PE Ratio: 15.55
  • Price/Book: 4.17
  • Forward Dividend Yield: 1.60 (3.37%)
  • Profit Margin: 21.88%
  • Operating Margin: 21.90%

9) Inc. (CRM)

Established in 1999 and has its headquarters in San Francisco, California, Salesforce is a leading provider of cloud-based customer relationship management (CRM) software. Their Salesforce platform allows businesses to manage all aspects of customer interactions, from sales and marketing to customer service. Salesforce also offers a wide range of cloud applications for marketing automation, analytics, and collaboration, empowering businesses to connect with customers in a digital world.

  • Marketcap: 229.19B
  • EPS: 5.57
  • PE Ratio: 42.46
  • Price/Book: 3.81
  • Forward Dividend Yield: 1.60 (0.68%)
  • Profit Margin: 15.30%
  • Operating Margin: 18.80%

10) Netflix Inc. (NFLX)

Founded in 1997 and has its headquarters in Los Gatos, California, Netflix is a global leader in subscription streaming services. They offer a vast library of on-demand movies, T.V. shows, documentaries, and original content. Netflix has revolutionized how people watch entertainment, allowing subscribers to stream content anytime, anywhere. The company invests heavily in original programming to attract and retain subscribers, competing fiercely in the ever-evolving streaming landscape.

  • Marketcap: 280.20B
  • EPS: 14.40
  • PE Ratio: 45.16
  • Price/Book: 12.74
  • Forward Dividend Yield: N.A.
  • Profit Margin: 18.42%
  • Operating Margin: 28.09%

Who Should Invest in US Tech Stocks?

Investors who understand how the tech sector works and are confident about its growth can invest in US tech stocks. Investing in US IT stocks can be a good diversification strategy. The US tech sector has some of the biggest companies in the world. Having such stocks in your portfolio will offer good diversification and also help you be part of their growth story. Ultimately helping you generate significant returns in the long term. 

Even though tech companies are currently volatile, they can be good investments for the long term. With the size of the industry growing and technological advancements driving every industry, the IT sector can be a good long-term investment.

Ideally, you should invest in stocks that are fundamentally strong and have a good track record. Also, you should closely track your investments while investing in the tech sector.

Technology Sector Outlook in the US

In 2021, the tech industry’s contribution to the United States was about 9.3% of the country’s total gross domestic product (GDP) (nearly USD 1.8 trillion). In April 2022, the tech stocks witnessed a significant fall. The sector has witnessed a slowdown since the wear out of the pandemic. However, this does not mean that the sector isn’t looking promising anymore.

The sector still looks promising over the long term. With technological advancements leading from the forefront, tech firms have endless opportunities. Therefore, if you are an investor with a long-term investment horizon, you can invest in the technology sector. The tech sector is huge, and it is only going to get bigger with companies pushing the boundaries.