Top 4 Tech Stocks to Invest in For 2022

These tech stocks are making moves for the future!

Tech’s rough start to 2022

Although the tech sector has had a rough start to 2022, there are some amazing companies in the sector that deserve your attention.

Many factors in the world have affected the valuations of tech and growth companies including the war between Russia and Ukraine. Additionally, the Federal Reserve is employing contractionary monetary policy in an attempt to stump the rapidly increasing inflation rates.

None of these factors bode well for the tech sector, but tech companies will continue to provide a massive amount of value to consumers. As technology continues to improve, companies involved in industries such as gaming, AI, and data centers should continue to thrive and live up to their valuations due to the rapidly increasing demand.

1- Meta Platforms

Meta Platforms, formerly known as Facebook, is the parent company for Instagram, Facebook, and WhatsApp, among many other subsidiaries. It is one of the largest technology companies in America with a market cap of $612 billion.

This company has been rapidly expanding and started as just a social media site. Now they have acquired many companies including one of the most significant being Oculus.

Oculus produces VR headsets that allow people to immerse themselves in the metaverse. This is the main driver behind the change of the company name from Facebook to Meta.

Nearly the whole world has a Facebook account, and Meta CEO Mark Zuckerberg intends to expand people’s online experience to a whole new virtual world that can be accessed from anywhere on the globe.

Facebook is an amazing technology stock to consider investing in purely based on the amount of information they have obtained. Facebook should continue to rapidly expand moving forward as VR technology advances and people communicate more online.

2- Alphabet Inc.

Google’s parent company Alphabet has an abundance of reasons for investors to bid up its stock price. Regardless of what is happening in the economy, Google generally continues to do well showing strong search performance.

YouTube also continues to dominate the online video market posting $8.63 billion in revenue in the 4th quarter of 2021 alone. Unlike other tech companies, Google has an amazingly resilient business model that generates about 90% of its total revenue from ads. This means they are not relying on selling products, but they are empowering other companies to get noticed via the purchase of ads on Google search results and YouTube videos.

Google also announced a 20-for-1 stock split, making investor sentiment even more bullish. Stock splits do not change actual valuations but they do cause hype and allow more investors to buy shares since the price will be lower. Google shares currently are trading around $2800 per share meaning a 20-for-1 stock split will effectively make their stock price just $140 per share. Google’s stock price will psychologically look cheaper, potentially causing more investors to buy shares.

3- Microsoft

Microsoft is one of the tech giants on the stock market and has been growing rapidly for years. With a market cap of over $2.3 trillion, Microsoft is a monster in the tech sector. 

Microsoft Azure, which is its cloud computing platform, has been showing amazing growth based on its 2021 Q4 earnings report. It shows AWS competitor Azure growing by 46%. Additionally, Microsoft’s quarterly revenue grew by 20% and for a tech giant as big as Microsoft a 20% growth in revenue is a nice accomplishment.

Microsoft has various ventures that it is pursuing including gaming, AI, and PC operating systems. They own Xbox and the operating system Windows which is what the majority of PC gamers use. It only sells licensing for Windows, which means consumers never actually own the Windows software and Microsoft can withdraw the license at any time. Microsoft also has a near-monopoly on its productivity software included in Microsoft Office.

For these reasons, Microsoft should continue to thrive and be a top player in the tech sector. It has near-monopolies and other products that people in all industries use on a daily basis. 

4- Marvell Technology

Marvell Technology was founded in 1995 and develops and produces semiconductors and other similar technology. The products they produce serve multiple different markets including data centers, carrier infrastructure, and automotive/industrial. 

Marvell is not currently EBITDA positive, but they are free cash flow positive which is a good sign for a solid growth company. Marvell acquired Inphi and Innovium in 2021 which is a reason for the negative EBITDA. In the next few years, it of course plans to turn a profit as it did before.

Chips produced by Marvell are a primary component of many consumer tech products including phones and the new 5g technologies that are rolling out. Marvell is a key player in the 5g and data center construction, meaning they will benefit greatly as people continue to buy and utilize their smartphones. Its hardware is well-suited to handle the fast network speeds of 5g giving them an advantage over other companies. Data consumption is on the rise because of 5g-network deployment making Marvell a tech stock that you should keep on your radar.