Yesterday’s massive drop on 3 of the major stock market indexes evolved out of a simple concept of someone creating and offering something better.

Of course, technology and technology companies are based on the strategy of improving how services are delivered. DeepSeek’s announcement really shock the confidence of the sector, with Nvidia losing about$600 billion in market cap at one point. The NASDAQ and Nvidia are recovering today. I bought in at $119 a share and I’m convinced the DeepSeek threat will blow over and the AI sector will resume it’s important role in the modern economy.

This attack (China company controlled by the CCP) will only serve to make the AI chip stocks and AI software companies improve and focus their products better, in a hurry. They didn’t have a threat until yesterday. As you can see the NASDAQ stocks are regaining their mojo.

Major Indexes today.
Major Indexes today. Screenshot courtesy of Google Finance.

Are Tech Stocks the Choice for Investors?

So why would want to buy tech stocks right now. It’s like Tom Lee of Fundstrat says “buy the dip.”  He still likes Nividia and so should you.  It still has a commanding market leader presence of all the best AI stocks to invest in. It’s hardware is the best and that’s what companies want to leverage to gain their own market leader status.

Today, we’re on the hunt for the best tech stocks to invest in. Given the NASDAQ crash yesterday, down 3%, we’ve got ourselves a buying opportunity. This could be a golden one, however we’re still in a volatile period that could see further drops. That may be, but buying low and waiting patiently for the big payoff is nice if you have the funds to do it.

Let’s look at these two charts below which show us the top performers so far year to date, and those that dropped the most yesterday.  The thesis here is that these high performers will come back to their former bullish trend. AI is hot and the disappointment of the DeepSeek announcement will fade.

Their product is restrained by the Chinese communist party which will cause President Trump to take a stand on it, and keep the focus on American chip makers and software companies. He does like the risk or competitive risk of a dependency on a China company for such a key technology in the US economy.

Biggest tech stock losses yesterday.
Biggest tech stock losses yesterday. Screenshot courtesy of Barchart.
Biggest tech stock gainers year to date
Biggest tech stock gainers year to date. Screenshot courtesy of Barchart.

Morningstar’s Top Tech Stocks to Buy Now

Here are Morningstar’s best tech stocks to invest in now as they describe:

  1. Sensata Technologies (ST) — The firm is a global supplier of sensors for transportation and industrial applications.
  2. STMicroelectronics (STM) — STMicroelectronics is a chip supplier for the automotive and industrial industries.
  3. Nice (NICE) — Nice provides cloud and on-premises software solutions that primarily serve the customer engagement market as well as the financial crime and compliance, or FC&C, market
  4. Onsemi (ON) —  A large power chipmaker and supplier of image sensors to the automotive market.
  5. Sabre Corporation (SABR) —  Sabre is a software company that provides travel booking and IT solutions.
  6. NXP Semiconductors (NXPI) — one of the largest suppliers of semiconductors for the automotive market and a significant player in the analog and mixed-signal chip markets.
  7. Adobe (ADBE) — provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers.
  8. Infineon Technologies (IFX)  — Infineon is a leading broad-based European  automotive chip sector for electric vehicles and active safety systems used in cars, and moving into car “infotainment” systems.
  9. Advanced Micro Devices (AMD) —   designs a variety of digital semiconductors for markets such as PCs, gaming consoles, data centers, industrial, and automotive applications.
  10. Endava (DAVA) — an IT services company focused on providing digital transformation and engineering services.

Why are Technology Companies Are Important to the U.S. Economy?

  1. Job Creation
    The tech sector is a major employer in the U.S., providing millions of high-paying jobs in software development, engineering, data science, and more. It also supports ancillary jobs in other industries.
  2. Economic Growth
    Tech companies contribute significantly to U.S. GDP. The sector drives productivity gains, innovation, and efficiency across all industries, from healthcare to manufacturing.
  3. Global Competitiveness
    The U.S. is a global leader in technology, and its tech companies help maintain the country’s competitive edge in areas like AI, semiconductors, and software development.
  4. Exports and Trade
    U.S. tech companies are major exporters of software, hardware, and services, helping to reduce the trade deficit and strengthen the dollar.
  5. Investment in R&D
    Tech companies invest heavily in research and development (R&D), which spurs innovation and creates new industries. This R&D often leads to breakthroughs that benefit the country and the world as a whole.
  6. Infrastructure Development
    Tech companies are driving the development of critical infrastructure, such as cloud computing networks, AI hardware infrastructure, 5G connectivity, and smart cities, which are essential for future economic growth.
  7. Entrepreneurship and Startups
    The tech sector fosters entrepreneurship, with Silicon Valley serving as a global hub for startups. This culture of innovation creates new businesses and drives economic dynamism.
  8. National Security
    Technology is critical to U.S. national security, from cybersecurity to defense technologies. Tech companies play a key role in developing solutions to protect the country from threats.
  9. Improved Quality of Life
    Tech advancements improve healthcare, education, communication, and transportation, enhancing the overall quality of life for Americans.
  10. Resilience to Global Challenges
    Technology enables the U.S. to address global challenges like climate change, pandemics, and energy shortages through innovations in clean energy, telemedicine, and more.

10 Reasons Why Tech Stocks Are a Good Investment Going Forward

Many solid, compelling reasons why tech stocks are the best stocks to buy now.

  1. Innovation Drives Growth
    Technology companies are at the forefront of innovation, constantly developing new products, services, and solutions. This continuous innovation fuels revenue growth and creates long-term value for investors.
  2. High-Profit Margins
    Many tech companies, especially software and cloud-based firms, benefit from high-profit margins due to low marginal costs. Once a product is developed, scaling it to more customers is relatively inexpensive.
  3. Recurring Revenue Models
    Subscription-based services (e.g., SaaS, cloud computing) provide predictable, recurring revenue streams, making tech companies more resilient during economic downturns.
  4. Digital Transformation
    Businesses across industries are investing heavily in digital transformation, which benefits tech companies providing cloud computing, AI, cybersecurity, and automation solutions. The new US economy is reliant on technology, especially AI technology to drive growth and revenue in all other industries. Stocks such as Nvidia and AMD and OpenAI are important to US economic leadership and digital technology leadership.
  5. Global Reach
    Tech companies often operate on a global scale, giving them access to massive markets and diversifying their revenue streams across regions.
  6. Strong Balance Sheets
    Many large tech companies have robust cash reserves, minimal debt, and strong cash flows, making them financially stable and capable of weathering economic uncertainty.
  7. AI and Automation Boom
    The rapid adoption of artificial intelligence (AI) and automation is creating new growth opportunities for tech companies, from AI-driven software to robotics and machine learning.
  8. Resilience During Economic Shifts
    Technology has become essential in both good and bad economic times as remote work, e-commerce, and digital communication are critical to business advantage.
  9. Mergers and Acquisitions (M&A) Activity
    Tech companies frequently engage in M&A to expand their capabilities, enter new markets, or eliminate competition, which can drive stock price growth.
  10. Long-Term Trends Favor Tech
    Megatrends like 5G, the Internet of Things (IoT), electric vehicles (EVs), and renewable energy are all underpinned by technology, ensuring sustained demand for tech products and services.

Technology stocks may not have the lifespan of blue chip stocks, but their capacity for price growth is astonishing. For those hoping to get rich faster via stocks, these represent the best growth profiles plus volatility for excellent buy the dip investment opportunities.

This post is not a recommendation to buy tech stocks, only information that suggests they are the best stocks to invest in today.

See more on the US stock market forecast, NASDAQ forecast, and the S&P500 forecast.

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