The technology sector stands as an emblem of innovation and progress, driving the wheel of modern-day economic growth. It encompasses a vast range of industries. This includes software services, and semiconductor manufacturing, to the burgeoning fields of artificial intelligence, machine learning, and quantum computing. It is an industry that encapsulates our contemporary zeitgeist, where the latest developments in smartphones, cloud computing, or social media platforms play pivotal roles in transforming how we communicate, conduct business, and even how we lead our daily lives.
As for tech stocks, they represent the equity shares of these technology companies listed on the stock exchanges. Historically, tech stocks have been associated with high growth and correspondingly high risk. They’ve produced some of the world’s most prominent companies, such as Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN) offering investors significant returns. However, the volatility of the tech sector also means that it can experience steep downturns. Therefore, investing in tech stocks requires a careful analysis of market trends, company fundamentals, and a risk appetite that aligns with the sector’s inherent unpredictability. Having said that, here are three trending tech stocks to watch in the stock market this week.
Tech Stocks To Watch Right Now
Microsoft (MSFT Stock)
Leading off. Microsoft Corporation (MSFT) is a leading global technology company offering a range of software products, services, and devices. Notably, Microsoft’s portfolio includes the widely used Windows operating system, the Office suite of productivity software, and the Azure cloud computing platform.
Last week, Microsoft reported its fourth-quarter 2023 financial results. In detail, the tech giant announced earnings of $2.69 per share on revenue totaling $56.19 billion, exceeding the consensus earnings estimate of $2.54 per share on revenue of $55.44 billion. This result represents year-over-year revenue growth of 8.34%.
Over the last six months of trading, shares of MSFT stock are up 36.54%. Meanwhile, as of this past Friday’s trading session, Microsoft stock closed the day up 2.31% at $338.37 a share.
Alphabet (GOOGL Stock)
Next, Alphabet Inc. (GOOGL) is the parent company of Google, the world’s most popular search engine. The company has a diverse portfolio of successful businesses. In addition to its core search and advertising operations, Alphabet is involved in various other sectors like cloud computing Google Cloud, and video sharing platform YouTube.
Also last week, Alphabet announced its second-quarter of 2023 earnings results. Diving in, the internet behemoth reported earnings of $1.44 per share on revenue of $74.60 billion for the quarter ended in June 2023. This exceeded the consensus earnings estimate of $1.32 per share on revenue of $72.77 billion. This marks a year-over-year revenue growth of 7.06%.
Moreover, these past six months, shares of Alphabet stock have advanced by 34.14%. With that, as of this past Friday, shares of GOOGL stock closed the day up 2.46% at $132.58 a share.
[Read More] 3 Telecom Stocks To Watch In Mid-July 2023
NVIDIA (NVDA Stock)
Lastly, NVIDIA Corporation (NVDA) is a leading designer and manufacturer of graphics processing units (GPUs). The company has become a critical player in the era of artificial intelligence. NVIDIA’s GPUs are used in a variety of applications, from gaming to professional visualization to data centers.
Back in May, NVIDIA released its financial results for the fiscal first quarter FY24. Getting straight to it, NVIDIA reported earnings of $1.18 per share, which were significantly above the consensus earnings estimate of $0.91 per share. In terms of revenue, the company posted $7.19 billion, a figure that surpassed the projected $6.52 billion. It is worth noting, however, that despite exceeding expectations, the company’s revenue was 13.22% lower than that of the same quarter in the previous year.
Looking at the past six months of trading, shares of NVDA stock have risen by 139.29%. Meanwhile, as of this past Friday’s trading session, NVIDIA stock finished the trading day up 1.85% at $467.50 a share.