The tech industry is constantly evolving, and it’s important to stay ahead of the game when it comes to investing. Two leading tech stocks to consider buying in 2023 and beyond are Advanced Micro Devices (AMD) and Apple (AAPL).
AMD is one of the world’s most in-demand chipmakers, and its stock is an increasingly attractive investment. The company’s chips have allowed it to partner with titans of the industry to strengthen and diversify its business. In 2020, AMD became the exclusive supplier of chips for two of the most popular game consoles, Sony’s PlayStation 5 and Microsoft’s Xbox Series X/S. Meanwhile, the company’s data center chips have attracted cloud giants like Microsoft’s Azure, Alphabet’s Google Cloud, and Oracle as clients. One of the biggest reasons to invest in AMD is the support it is receiving from Microsoft to expand its AI chip offerings. The partnership is promising because Microsoft is one of the biggest names in AI right now, and the AI market is projected to expand at a compound annual growth rate (CAGR) of 37% through 2030.
Apple is the most valuable company in the world, with a market cap of $2.7 trillion. The company’s dominance across several areas of consumer tech and a booming services business make its stock worth considering. Apple shares have climbed nearly 1,000% since 2013. The company’s consistent growth has primarily stemmed from its ability to rise to the top of nearly any industry it enters. It has attained a leading market share in smartphones, tablets, smartwatches, and headphones despite other tech companies controlling those markets before Apple entered the picture. Apple’s expected venture into the VR/AR market next month is an exciting development. The VR/AR market is projected to hit $31 billion this year and grow at a CAGR of 14% through 2027. Moreover, Apple services have become an increasingly lucrative way for the company to diversify its earnings and lean less on product sales in the event of a market downturn. The consistent rise of iPhone adoption has spurred its services business, with the segment’s revenue rising 63% since the first quarter of 2020 and offering attractive profit margins of around 70%.
Investing in tech stocks can be a great way to diversify your portfolio and potentially earn substantial long-term gains. Consider adding AMD and Apple to your investment portfolio for a promising future.
