Advanced Investing
6 + mins
June 21, 2024

These Technology Giants Could Upgrade Your Investing Portfolio

Tech Titans continue to grow

Tech Titans, behemoths of the technology industry, the brands we associate with some of the biggest valuations on the planet. You know their names: Apple, Amazon, Microsoft, Google.

These companies have been innovating for decades, and have brought immense returns for investors. These household names, whose stocks can rise and fall dramatically in response to their most daring endeavours, are shaping the world in which we live.

So what keeps the Tech Titans riding on top?

Fostering innovation

Occasionally one of these tech titans will follow suit behind one of their competitors, releasing their own version of a feature or product into the market. But that’s not where their rocket fuel comes from.

These enormous brands are the ones pushing for firsts in their fields. The best, such as Google, make innovation a priority, pushing their employees’ creative powers to the maximum.

Not that it always goes to plan. Remember last year when a Google employee was put on leave for suggesting that Google’s AI chatbot had become sentient? Well, this year Geoffrey Hinton, the ‘Godfather of AI’ quit Google over his concerns about AI.

Staying relevant and competitive

Two things here. The first is that in order to carry on growing, tech giants like Amazon and Apple and Microsoft, need to both be aware of what the competition is doing (and will do), and be cognisant of market trends which could present challenges and opportunities. 

Those brands which manage this time after time for years, often leave the competition in their dust.

Could that happen with Meta and Threads, its rival to Twitter? With over 100 million sign ups in just 5 days, it’s possible.

The second point about making it easier to stay relevant and competitive, is that many of the tech giants either have fewer resource-heavy physical products, or they build their entire strategy around releasing new products regularly.

Diversifying revenue streams

Just like individual investors, huge tech companies mitigate the risks to their businesses by investing in a wide range of technologies and ventures that align with their long-term goals. 

These are complex decisions involving years of research, which ultimately have an effect on the portfolio of stockholders.

Amazon Prime Video is a good example. Since branching into video in 2016, Amazon has added a revenue stream to its name that rivals Netflix, a company whose sole purpose is streaming. 

And they’re not making B-movies, either. Amazon spent $58 million per episode on its Lord of the Rings series, for a total budget of $465 million.

Solving global challenges

Companies such as Apple, Amazon, and Microsoft, have the ability to effect change on a global scale thanks to their size. 

Many are starting to seriously invest in energy, education, healthcare, and other sustainability solutions, thus keeping themselves relevant and competitive while doing good for the world as a whole.

Supporting upcoming companies

Yes, it’s business, and yes, they want to maximise their profits, but by investing in young companies aligned with their own goals, companies such as Google can help to create a virtuous cycle of innovation.

Google’s parent company, Alphabet, pledged $100 million in donations to young AI startups in 2023.

Investing in Tech Titans on NuWealth

From shares to ETFs, there’s plenty to choose from when adding some tech to your portfolio.

Apple (APPL): NuWealth Standard

With demand for iPhone still as strong as ever, and with sales of Macs and wearables creating profit quarter after quarter, Apple is an obvious choice for any investor.

Market cap: $2.98 trillion (which makes it the most valuable company in the world!)

Alphabet (GOOGL): NuWealth Standard

Google’s parent company has many arms, including YouTube, Verily, and Waymo. As a leader in artificial intelligence, too, Google and Alphabet look set to provide long-term returns for investors.

Market cap: $1.51 trillion

Amazon (AMZN): NuWealth Standard

The world’s most customer-focused retail company is one of the largest and most successful in all of history. Extending into cloud computing and entertainment (Prime Video) adds more enormous revenue streams which, like Apple, makes Amazon a must.

Market cap: $1.33 trillion

Nvidia (NVDA): NuWealth Standard

NVIDIA is a global leader in graphics processing units (GPUs) and artificial intelligence (AI) technology. Its GPUs are widely used in gaming, data centres, and emerging fields like autonomous vehicles and robotics. With AI becoming increasingly integral to various industries, NVIDIA's innovative solutions and partnerships position it for substantial growth.

Market cap: $1.08 trillion

PayPal (PYPL): NuWealth Standard

Founded in 1998, PayPal is a household name in digital payments, and is still relevant today, being offered as a standard means of payment at many online stores.

Market cap: $81 billion

The Techie (ETF on Standard)

Can’t decide which tech giants to invest in? You can buy them all together as part of our ETF, The Techie.

Technology companies like the ones we’ve mentioned have proven themselves capable of generating solid returns over the years, but it’s worth remembering that with innovation comes risk, and it’s not unusual to see the value of these stocks go down as much as they go up.

Your capital is at risk when you invest. Tech companies can make volatile stocks. Always do your own research. 

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