Best Tech Stocks To Buy Now for September 2022

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It’s no secret that tech stocks have taken a beating this year. While some investors would see this as a reason to stay away, others see a buying opportunity. If you think it’s time to get into — or back into — tech, here’s what you need to know.

Read more: Looking To Diversify In A Bear Market? Consider These 6 Alternative Investments

What Companies Are Considered Tech Stocks?

First, it’s important to define tech stocks. You probably know some of the big ones: Amazon, Google, Meta, Apple and so on. These are well-known names to most investors — and most consumers. But there are many other tech stocks as well. In fact, any company that sells products or services in the technology sector is considered a tech stock — so, everything from cloud computing and software as a service companies, to smart energy providers, to manufacturers of computer hardware and microchips, to streaming services and smart phone manufacturers. It’s a big sector, so there are a lot of companies to choose from.

Why Invest in Technology Stocks?

Most tech stocks are traded on the Nasdaq exchange, so looking at the performance of the Nasdaq Composite Index is a good indicator of the health of the sector. From Jan. 1, 2022, to Aug. 31, 2022, the Nasdaq Composite was down 25.37%.

At first glance, this may seem like a really good reason to stay as far away from tech stocks as possible. But, looking a little closer, it’s possible that tech stocks are due for a rally. While the days of making millions by buying the IPOs of Apple or Google are a distant memory, there’s still some running room in tech stocks.

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In fact, tech stocks are no strangers to seemingly catastrophic downturns. In 2000, during the so-called “tech wreck,” the Nasdaq dropped 25.2% from March to November 28. The sector fared somewhat better in the Great Recession of 2008, dropping just 13.8% in a similar timeframe during that bear market.

Here are some tech stocks to look at in September 2022:

Company YTD Performance — As of Sept. 8, 2022 Closing Price on Sept. 8, 2022
Micron Technology (MU) -42.50% $55.07
GlobalFoundries (GFS) -8.80% $59.52
Wolfspeed (WOLF) -8.10% $111.30
Citrix Systems (CTXS) 5.50% $103.70
ON Semiconductor (ON) 0.50% $70.55
SolarEdge Technologies (SEDG) 11.20% $314.16
Fiserv (FISV) -1.70% $105.74
IBM (IBM) -5.60% $128.47
Fleetcor Technologies (FLT) -7.50% $213.80
Amazon (AMZN) -23.80% $129.82
Alphabet (GOOG) -24.60% $109.42
Apple (AAPL) -15.10% $154.46

Clearly, some of these tech stocks, particularly some of the bigger names, are way down this year. Some are only down slightly, and a few are even up year to date. So, what makes these stocks attractive buys now? Here’s how it breaks down.

Chip Stocks

The CHIPS and Science Act of 2022 was passed to encourage companies to manufacture microprocessors in the United States, reducing the dependence of U.S. companies on foreign manufacturers for these tiny silicon chips that go into everything from washing machines to smartphones to cars.

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Some of the companies likely to benefit from this law include Micron Technology, GlobalFoundries, Wolfspeed and ON Semiconductor. Micron Technology just announced plans for a new $15 billion fab in Idaho. GlobalFoundries is a contract chip maker that can expect more orders due to not only the CHIPS act but also the current chip backlog. Wolfspeed has already announced plans to build a new manufacturing facility in North Carolina to produce the raw materials that go into chips for electric vehicles and other applications. ON Semiconductor makes semiconductors for automotive, industrial, medical and aerospace applications, plus 5G and Internet of Things applications.

Cloud Computing, Energy and Fintech

These are players in industries that had been hitting their stride prior to the pandemic and, despite having had some setbacks this year, look poised to continue their previous upward trajectories.

SolarEdge provides smart energy technology to take advantage of the trend toward renewable energy. Citrix Systems is a cloud computing company that continues to benefit from the increase in remote work and the need for companies to provide flexible access to their computer systems. Fiserv provides fintech and payment processing technology to companies worldwide. FleetCor Technologies automates and digitizes business payments and employee purchases, making it easier for companies to stay on top of their expenses.

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Technology Stalwarts

Some tech stocks need no explanation. While the days of these companies’ IPOs making overnight millionaires, or billionaires, are over, companies like IBM, Amazon, Alphabet — parent company of Google, and Apple continue to deliver returns for investors over the long term. While some of these companies have declined significantly since the beginning of 2022, it may be time for a rally for some of these tech titans. Industry analysts still hold these stocks in high regard, and it’s hard to argue with their past success.

ETFs

Can’t decide which tech stocks to add to your portfolio? Consider the Technology Select Sector SPDR Fund ETF (XLK) which tracks the index of tech stocks in the S&P 500. This exchange-traded fund gives you the ability to participate in any future upside in the tech sector while diversifying so that a single poor decision won’t bring down your portfolio.

Final Take

Technology stocks, while not the high-flyers they once were, can be solid long-term investments. The products and services they provide keep businesses running and have become irreplaceable in our personal lives. Companies in this sector will continue to innovate and their stocks should provide solid returns over the long run.

Information is accurate as of Sept. 8, 2022.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

Karen Doyle is a personal finance writer with over 20 years’ experience writing about investments, money management and financial planning. Her work has appeared on numerous news and finance websites including GOBankingRates, Yahoo! Finance, MSN, USA Today, CNBC, Equifax.com, and more.
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