Dividend Stocks

Unleashing the Power of Tech Stocks: 7 Must-Have Investments Now

Technology connects billions of people and has changed how we communicate and obtain information.  It’s hard to think of a time when people had to trudge through the rain to get to their local library. Now, you can find information on any subject with a few clicks.

Many corporations have capitalized on innovative technology and have delivered impressive returns for their investors. However, some tech stocks look like dinosaurs while others are continuing to soar. Let’s examine some of the top tech stocks that investors are considering.

Meta Platforms (META)

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Meta Platforms (NASDAQ:META) knows how to grab people’s attention.

The social media giant profits from people’s time as they consume content on Facebook, Instagram and WhatsApp. It’s been a winning formula for several years, as the stock is up by 175% over the past five years. Also, Meta Platforms is up by 38% year-to-date (YTD) and comes with a 27.5 P/E ratio.

Recently, the firm began to pay dividends which start at 50 cents per share. The current yield is 0.42%. While some corporations offer dividends to signal that growth is slowing, Meta Platforms has been delivering solid results. Q1 2024 revenue increased by 27% year-over-year (YOY) while net income soared by 117% YOY. 

Further, META focuses on the bottom line ever since a miserable 2022. Shareholders have benefitted greatly from this shift. Wall Street analysts are excited about the stock and have rated it as a strong buy. The average price target suggests a 10% upside from current levels.

Crowdstrike (CRWD)

Person holding smartphone with logo of US software company CrowdStrike Holdings Inc. (CRWD) on screen in front of website. Focus on phone display. Unmodified photo.

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Cybersecurity firm Crowdstrike (NASDAQ:CRWD) continues to deliver exceptional revenue growth. The company reported 33% YOY revenue growth in Q4 of 2024 and a shocking surge in net income. The firm reported a net profit of $53.7 million compared to a net loss of $47.5 million in the same period last year.

Additionally, Crowdstrike makes most of its revenue from recurring business, so it should continue to generate meaningful returns for several years. Annual recurring revenue reached $3.44 billion to wrap up fiscal 2024. This figure is 34% higher than the same period last year. 

The stock has been booming for quite a while. Shares are up by 25% YTD, gaining 381% over the past five years. Currently, it trades at a 79 forward P/E ratio.

And, Wall Street analysts have high hopes for Crowdstrike. The cybersecurity stock is currently rated as a strong buy with the average price target suggesting a 30% gain from current levels.

Nvidia (NVDA)

Nvidia technology company displayed on cell phone. NVDA stock

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Nvidia (NASDAQ:NVDA) has been outpacing the stock market for several years as its AI chips continue to generate plenty of demand. The stock has more than doubled YTD while logging in gains above 3,000% over the past five years. 

The company announced its latest AI chips to gain more ground on its competition. This quick turnaround indicates Nvidia is doing what it can to maintain its strong lead over competing firms.

Nvidia has been reporting solid financial results for several years, and that trend continued in Q1 of 2025. Revenue surged by 262% YOY while net income soared by 628% YOY. The company’s announcement of a 10-for-1 stock split has attracted more investors who have a chance of buying shares at a lower price.

Wall Street analysts advocated for the stock long before its stock split announcement. The AI chip leader is rated as a strong buy and has a projected 5% upside based on the average price target. Recent price targets offer a more optimistic picture, including a recent $1,500 price target. This highest forecast indicates that a 30% gain is possible.

Microsoft (MSFT)

Microsoft logo close up. Microsoft (MSFT) Flagship Store Fifth Avenue, Manhattan, NYC.

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Microsoft (NASDAQ:MSFT) is another AI leader that continues to generate revenue and earnings growth due to its business verticals. The company has leading positions in cloud computing, business software, cybersecurity, artificial intelligence (AI) and advertising. Those components have resulted in a 12% YTD gain and a sterling 215% gain over the past five years.

Third quarter of 2024 financials showed plenty of promise. Revenue increased by 17% YOY as demand for Microsoft Cloud remains strong. Meanwhile, net income came to $21.9 billion which was up by 20% YOY. Microsoft Cloud revenue grew by 23% YOY and represents more than half of Microsoft’s total revenue.

Also, MSFT saw double-digit growth rates for its “Productivity and Business Processes” segment as well as its “More Personal Computing” part of the business. The firm returned $8.4 billion to shareholders through buybacks and dividends. Microsoft’s yield currently stands at 0.73%. The company has maintained an annualized dividend growth rate of 10.60% over the past decade.

Qualcomm (QCOM)

An image of the top half of a black smartphone with a white screen displaying a blue

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Qualcomm (NASDAQ:QCOM) is a semiconductor company that has been performing well after missing out on the initial AI rally. Shares are up by an impressive 47% YTD and have tripled over the past five years. Qualcomm stock trades at a 28 P/E ratio and offers a 1.65% yield. The company has raised its dividend for 21 consecutive years and has a dividend payout ratio slightly above 40%. 

The firm’s Q2 of 2024 results indicate the company is taking steps in the right direction to reinvigorate growth. After several quarters of declining revenue and earnings, Qualcomm reported 1% YOY revenue growth. While some growth is better than no growth, the company did a phenomenal job with its net income, which was up by 37% YOY. 

Finally, the corporation returned $1.6 billion to shareholders through stock buybacks and dividends. Currently, the company’s quarterly dividend stands at $0.85 per share after a recent 6.3% hike. 

Oracle (ORCL)

A photo of an Oracle (ORCL stock) sign outside a building.

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Top-tier software company Oracle (NYSE:ORCL) has delivered solid returns while holding onto a 31.5 P/E ratio and a 1.34% yield. It has “growth at a reasonable” price and has been rewarding for long-term investors. The stock is up by 15% YTD and has gained 124% over the past five years.

Additionally, the company reported 7% YOY revenue growth in Q3 of 2024 as cloud revenue pushed up results. And Q3 cloud revenue came to $5.1 billion which was up by 25% YOY. That represents almost 40% of the company’s total revenue. Also, Oracle expanded its net profit margins thanks to a 27% YOY improvement in net income. 

Oracle only has a 41% dividend payout ratio and has maintained an annualized dividend growth rate of 14.31% over the past decade. The low payout ratio and solid financials suggest that Oracle can maintain a double-digit growth rate for its dividend. 

Currently, the software company is rated as a moderate buy with a projected 17% upside. The highest price target of $160 per share implies a 34% gain.

Adobe (ADBE)

Website of Adobe (ADBE) Firefly seen in an iPhone. In Mar 2023 Adobe announced the beta launch of its new generative AI model Firefly.

Source: Koshiro K / Shutterstock.com

Also, Adobe (NASDAQ:ADBE) has a lot of supporters in Wall Street. It’s rated as a moderate buy with a projected 42% upside based on the average price target. The highest price target of $703 suggests that Adobe stock can gain an additional 60%. The lowest price target of $445 per share still suggests that the stock can achieve some upside based on current levels.

The creative software company is off to a bad start with a 24% YTD decline. Despite the recent struggles, Adobe is still up by 58% over the past five years. It’s present P/E ratio stands at 42 . 

Recently, Adobe reported 11% YOY revenue growth in Q1 of 2024. The company’s remaining performance obligations stand at $17.58 billion, which is more than three times its Q1 of 2024 revenue of $5.18 billion.

Still, the corporation is making strides to reward shareholders despite recent events. Adobe repurchased roughly 3.1 million shares in the first quarter.

On this date of publication, Marc Guberti held long positions in CRWD, NVDA, and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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