The tech sector represents companies developing and delivering innovative technology solutions across various industries. These range from software developers and hardware manufacturers to cloud computing and cybersecurity providers. Tech stocks offer investors exposure to companies driving digital transformation worldwide. The sector continues to shape how businesses operate and people live through constant innovation.
Investing in tech stocks can provide significant growth opportunities as technology becomes increasingly essential to daily life. Many tech companies have scalable business models, allowing for rapid expansion with minimal additional costs. Some established tech firms now offer dividends, combining growth potential with income. However, tech investments come with distinct risks. The sector can be volatile, with sharp price swings based on earnings or market sentiment. Competition is fierce, and today’s leading technology could become obsolete tomorrow. Regulatory challenges and cybersecurity concerns can impact company valuations.
When evaluating tech stocks, examine the company’s competitive advantages and innovation pipeline. Consider their market position and ability to defend against new competitors. Look at factors like recurring revenue streams and customer retention rates. Be aware that many tech stocks trade at high valuations based on growth expectations. Consider the company’s ability to adapt to rapidly changing technology trends. Considering all of this, here are two tech stocks to watch in the stock market today.
Tech Stocks To Invest [Or Avoid] In Right Now
- Alphabet Inc. (NASDAQ: GOOGL)
- Advanced Micro Devices Inc. (NASDAQ: AMD)
Alphabet (GOOGL Stock)
To lead off, Alphabet Inc. (GOOGL) is a multinational technology conglomerate and parent company of Google. They dominate the internet search market and provide various online services including advertising, cloud computing, and mobile software. Alphabet also invests in emerging technologies through various subsidiaries, including artificial intelligence, autonomous vehicles, and biotechnology.
This week, Alphabet announced its most recent third-quarter 2024 financial and operating results. In detail, the tech giant posted Q3 2024 earnings of $2.12 per share, with revenue of $88.27 billion. This is compared to analysts’ consensus estimates for the quarter which were earnings per share of $1.83. In addition, revenue gained by 15.09% versus the same period, the previous year.
In the last month of trading, shares of GOOGL stock have jumped higher by 9.07%. Meanwhile, on Wednesday morning, Alphabet stock is trading higher on the day so far by 6.48% at $180.67 a share.
[Read More] 2 Consumer Stocks To Watch Ahead Of November 2024
Advanced Micro Devices Inc. (AMD Stock)
Up next, Advanced Micro Devices Inc. (AMD) is a global semiconductor company specializing in high-performance computing and graphics processors. They design microprocessors for computers, data centers, and gaming systems, competing in both consumer and enterprise markets. AMD has gained significant market share with its innovative chip architectures and processing solutions.
Just this week, Advanced Micro Devices also reported its third quarter 2024 financial results. Getting right into it, the chipmaker announced Q3 2024 earnings of $0.92 per share, versus estimates of $0.92 per share. Additionally, AMD reported revenue for the quarter of $6.82 billion compared to consensus estimates of $6.71 billion for Q3 2024.
Looking at the past month of trading action, shares of Advanced Micro Devices stock have pulled back by 7.78%. That said, on Wednesday morning, AMD stock is trading red on the day by 9.07%, trading at $151.17 a share.
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