What are the top technology stocks? Here’s an overview of the 10 top companies listed in order of market cap for investor consideration.
According to Deloitte, businesses are increasingly adopting cloud and artificial intelligence (AI) capabilities into their business models, with a projected 60 percent of these organizations moving to the cloud in 2019, boosting the top technology stocks.
A number of the largest tech companies including Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and IBM (NYSE:IBM) are scaling up their cloud offerings. In turn, profit and revenue from cloud sales are driving its growth. Cloud services often provide a monthly recurring revenue stream for businesses.
In July, Microsoft tipped passed a US$1 trillion market cap valuation. The often-overlooked tech company emerged as the largest tech company in the world as the uptick in its cloud-sales bolstered its earnings and subsequent stock price.
Microsoft is not the first to reach these gargantuan valuations. In August, 2018 Apple (NASDAQ:AAPL) became the first publicly traded company to reach the US$1 trillion valuation mark. Shortly after, Amazon surpassed this mark. The New York Times reported that for every US$1 dollar of ecommerce money spent, 49 cents goes to Amazon. According to Statista, Amazon’s market share of the US ecommerce market is anticipated to reach 50 percent by 2021.
Deloitte further notes that the tech industry is projected to focus more significantly on cloud computing and flexible consumption (“pay as you go”) services looking forward. Additionally, distributed ledger and blockchain technology are continuing to be large tech trends, and Deloitte projects that more businesses will explore integrating blockchain applications into their business models. As security issues increase in scale, the application of blockchain and biometrics may be effective solutions for privacy protection.
Top technology stocks
The Investing News Network takes a look at the largest tech companies according to market capitalization globally. Data was sourced from intelligence company Global Data, with the top 10 companies in the technology sector listed in order from largest market cap to smallest. All numbers and figures of technology companies were gathered on February 7, 2020.
Market cap: US$1.41 trillion; current share price: US$319.68
First on our top technology stocks list is Apple. Since the company shot to fame with the Macintosh in 1984, Apple’s hardware portfolio has expanded to include the iPad, Mac, Apple Watch and Apple TV. Its digital services also include App Store, Apple Music, Apple Pay and iCloud.
Market cap: US$1.39 trillion; current share price: US$183.16
Founded in 1975 with its headquarters in Redmond, California, Microsoft is well versed in hardware and software. Its hardware lineup consists of its flagship Surface brand, which covers a wide range of price points. The line is a competitor for Microsoft’s arch rival Apple’s iPad Pros and Macbooks.
The company’s software portfolio has always been a strong focus, and includes its computer operating systems (OS), smartphone OS and Windows Server. Furthermore, Microsoft has been targeting business users with its productivity suite that includes the Office and Cloud suites. Azure, its cloud product, has driven considerable growth, with year-over-year revenues climbing 68 percent.
In 2019, Microsoft announced partnerships with AT&T (NYSE:T) in a deal valued at US$2 billion. It has also announced a cloud partnership with Providence St. Joseph Health, which employs over 119,000 caregivers.
Market cap: US$1.04 trillion; current share price: US$2,075.02
Founded in 1994, Amazon has evolved from its online retail shopping to become a tech monolith through its Amazon Web Services (AWS) platform. AWS offers services for computing, storage, databases, networking, analytics, machine learning and artificial intelligence (AI), among other things.
Fire TV, its streaming platform, posted 30 million active users in April 2019. In addition, the company reported that its virtual assistant, Alexa, is now available in India, France, Spain, Australia and Japan.
4. Alphabet (NASDAQ:GOOG)
Market cap: US$1.03 trillion; current share price: US$1,476.43
Holding company of internet search giant Google, Alphabet operates through multiple brands, with its portfolio of companies ranging from investments to acquisitions. Some of the companies under Alphabet are Calico, GV, Capital G, Verily, Waymo, X and Google Fiber. As such, it’s no surprise that Alphabet ranks highly on the top technology stocks list.
Founded in 1998, Google quickly became a household name with numerous products under its vertical, a list that now includes Google Pay, Google Cloud, Android, Google Maps and YouTube.
Most recently, Alphabet became the newest member of the trillion dollar club, when its market cap officially climbed over US$1 trillion on January 16, 2020.
5. Samsung Electronics (KRX:005930)
Market cap: US$983.66 billion; current share price: KRW$60,400
With headquarters in Seoul, South Korea, Samsung Electronics is the fifth largest tech company in the world. Founded in 1938, Samsung originated as a grocery trading store. The company then focused on the textiles industry after the Korean War, and in 1969 it first entered into the electronics industry. It is now among the largest electronics manufacturers in the world.
In addition to products such as tablets, smartphones, watches and even appliances, Samsung operates a semiconductor business, developing chips and smartphone application processors.
6. Facebook (NASDAQ:FB)
Market cap: US$604.62 billion; current share price: US$211.37
Social media giant Facebook occupies the sixth spot with its product suite connecting more than a billion users across the globe.
The company’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus. During the fourth quarter of 2019, daily active users of Facebook numbered 1.66 billion, while its monthly active users were 2.5 billion.
In July, the BBC reported that Facebook won’t launch its proposed Libra cryptocurrency without US regulatory approvals. Representatives from Facebook have spoken multiple times before the US Congress since the announcement in June regarding the proposed cryptocurrency. Despite unveiling the digital currency, Facebook CEO Mark Zuckerberg has remained tight lipped on an exact launch date for 2020, leaving some investors to question if it will be released during the first half of this year as originally planned.
7. Alibaba Group (NYSE:BABA)
Market cap: US$588.38 billion; current share price: US$215.61
Alibaba Group operates online and mobile marketplaces in retail and wholesale trade. The company’s core products are in sectors such as e-commerce, cloud computing, digital media and entertainment.
Headquartered in Hangzhou, China, Alibaba group operates in over 200 countries across the globe. At the closing date of its IPO on September 19, 2014, the company raised US$25 billion, which was the highest IPO at the time.
In July of 2019, Alibaba granted access to US businesses to sell items on its platform. Previously, US individuals were only able to purchase items on the site. Reuters reports that the business-to-business ecommerce sector is valued at close to US$29.3 trillion globally.
8. Tencent (OTC Pink:TCHEY,HKEX:0700)
Market cap: US$492.01 billion; current share price: US$50.99
Founded in 1998, Tencent Holdings is a technology company that invests in a wide range of internet-related businesses with an enormous global footprint.
Tencent owns subsidiaries and products that number into the hundreds, including Activision Blizzard (NASDAQ:ATVI), Fortnite, Riot Games and Take-Two Interactive Software. In addition, the company owns China’s largest messaging app, WeChat.
Although Tencent became the first Chinese tech company to land a valuation over US$500 billion in 2017, the company has slipped slightly since then and was unable to make the top 10 list in 2019.
Most recently, it was revealed that Tencent entered into a new capital investment with its funding of Platinum Games. This move comes on the heels of Tencent’s distribution deal with Nintendo (OTC Pink:NTDOF,TSE:7974) in December 2019. The companies announced that Tencent would operate as the authorized distributor of the Nintendo Switch gaming handheld system in China.
9. Intel (NASDAQ:INTC)
Market cap: US$283.18 billion; current share price: US$66.21
Headquartered in Santa Clara, California, the company shot to fame in 1968 because of its processors, which powered various computing devices.
The company designs, manufactures and sells computing products that include core computing devices, networking, data storage and communication platforms.
Just this month, Intel’s Clear Linux claimed its victory over Microsoft’s Windows 10 Home as best operating system. While Clear Linux was programmed to run on Intel’s processors, it became clear that it worked just as efficiently on cheaper AMD hardware.
10. Taiwan Semiconductor Manufacturing (TSM) (NYSE:TSM)
Market cap: US$279.06 billion; current share price: US$56.21
Created in the late 1980’s, TSM was originally created to be a semiconductor innovator across the globe. Since then, TSM has spawned an entire tech division that focuses on automotive technology, artificial intelligence and 5G applications, wearable technology and mobile platforms.
In January of this year, the company announced that its revenue reached NT$317.24 billion and net income of NT$116.04 billion during the fourth quarter of last year. Revenue increased 9.5 percent from Q4 2018 and net income climbed 16.1 percent.
Don’t forget to follow us @INN_Technology for real-time news updates.
Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.