Tech stocks have rallied strongly so far this year, mirroring the broader U.S. market. While the S&P 500 is up 5.29% YTD, the technology sector in the index is up 5.89%. After the energy sector, the tech sector is the best performing sector YTD. Unlike financials and others, the tech industry has continued to rebound since the credit crisis. Strong demand for their products and services in emerging markets drives the earnings of technology companies, despite slumping demand in the domestic and other developed markets.
Most investors abandoned this sector after the dot-com bubble. But in the current environment, adding a few technology stocks to one’s portfolio is a wise strategy. Based on one measure quoted by Bloomberg BusinessWeek, the current tech rally has legs.
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Some of the large-cap technology stocks to consider are:
- Intel Corp. (NASDAQ:INTC)
- Microsoft Corp. (NASDAQ:MSFT)
- Cisco Systems (NASDAQ:CSCO)
- Apple Inc. (NASDAQ:AAPL)
- International Business Machines Corp. (NYSE:IBM)
- Oracle (NYSE:ORCL)
- Google (NASDAQ:GOOG)
- Dell Inc. (NASDAQ:DELL)
- Nvidia Corp. (NASDAQ:NVDA)
- Applied Materials (NASDAQ:AMAT)
Disclosure: No positions