Investing in the technology sector is mostly done through stocks. Just like any other investment, throughout research before investing your money will be the deciding factor in earning money from it. The research process involves enquiring into the product or service that a specific tech company offers the market, and deciding whether or not it will come good.
In the technology sector, you can purchase stocks in anything from small start-ups to large conglomerates. These companies might offer hardware solutions, software solutions, websites, and various other services.
The investment opportunities in the technology sector are opportunistic, to say the least. However, just like any other, there are risks involved.
In this article, we’re going to tell you about the investment options in the technology sector.
Before we start, let’s have a quick statistical overview of the returns across the technology sector in the past few years.
The only negative year has been 2008, where the returns were -41%. The following year, returns were a whopping 50%, followed by a 40% decrease the following year. 2011, 2012, and 2013 were quite years, with returns going no higher than 25%. The following three years were even worse, with returns falling as low as 5% and high as 14%. In 2017, returns were 35%.
Based on this, we can generally come to the conclusion that the technology sector is mostly regarded as safe, with minimal to none losses.
Now, let’s take a look at your investment options.
1. Artificial Intelligence
AI, for those who don’t know, is a technology that has raised a few eyebrows. AI is a tech where the computer thinks like a human and makes its own (limited) choices by encompassing deep learning and machine learning. Some of the most famous AI’s include Amazon’s Alexa and IBM’s Watson.
Smartphones are devices that everyone has and uses. As said by investotrend.com, the leaders in this field of tech are Samsung and Apple, but there are lots of 2nd-tier companies such as Huawei and Lenovo. However, the technological field of smartphones also includes players that manufacture software, apps, and the phones themselves.
Blockchain technology will no doubt revolutionize our lives. The blockchain technology is the one behind the famous Bitcoin cryptocurrency (and thousands of others). But Bitcoin isn’t just an internet currency. The blockchain is a decentralized space that is made out of blocks. Every bit of information is in blocks in which miners have to mine. The blockchain is fully anonymous, transparent, and immutable (unchanging). What can be found on the blockchain can be viewed by everyone, but no one can change it. All transactions on the blockchain require no bank or third party involved, eliminating the fee process altogether.
4. Self-Driving Technologies
Yet another field in tech that is closely related to AI, self-driving technologies are already here. Industry leaders like Alphabet (Google) and Tesla have already implemented this technology into models of their vehicles. These self-driving cars can be spotted usually around Silicon Valley, California, and San Francisco. Self-driving tech promises to neutralize driver errors through the machine and deep learning and machine learning, where the machine will learn from its mistakes and improve with each try.
Other notable fields for investment include, but are not limited to, computer & software, the internet, the internet of things (IoT), stream media, devices, cloud-based solutions, cybersecurity and component makers.