Best US Tech Stocks 

US Tech Companies: Business Structure, Models and Products

The US tech sector was worth over $390 billion in 2024 and is expected to grow past $722 billion by 2032 (Data Bridge Market Research). It covers a whole range of industries, with companies grouped into four main segments:

• Hardware, Equipment: Companies like Apple (AAPL), Microsoft (MSFT) and HP make money by selling devices like iPhones, laptops, PCs, tablets and other tech gear. These physical products are still a big, high-margin part of their business.
• Software: Adobe (ADBE), Alphabet (GOOGL), Oracle (ORCL) offer software through subscriptions, commonly known as the SaaS (Software-as-a-Service) model. This creates recurring income. This category also includes cybersecurity tools, productivity apps, and cloud platforms.
• Semiconductors: NVIDIA (NVDA), Intel (INTC), Broadcom (AVGO), and AMD (AMD) and other such companies design and sell the chips that power smartphones, data centers, and AI systems. As demand for AI grows, this space is expected to see strong revenue growth in the near future (Deloitte). These companies mostly earn by selling chips to other businesses and through licensing.
• E-commerce & Internet Services: Amazon (AMZN) and Meta Platforms (META) make money through their digital platforms. Their revenue comes from ads, commissions from third-party sellers, and direct sales. Meta, for example, gives its services free to users but makes money through targeted advertising.
• Cloud Computing: AWS (Amazon), Microsoft Azure, and Google Cloud provide the digital infra that powers many tech services today. They charge money based on usage, offering everything from storage to developer tools. Global cloud spending is set to double by 2028 (Deloitte), and these companies are set to benefit from this.

Why Invest in US Tech Stocks?

US tech stocks remain a popular choice for investors, and it’s not hard to see why. Here are a few big reasons behind the continued interest:

1. Tech is reshaping every industry: From banking to healthcare, businesses everywhere are turning to technology to work faster, smarter, and in entirely new ways. This shift is creating long-term demand for tech products and services. A recent report suggests the digital transformation market could grow at over 22% a year through 2035.
2. Constant innovation: The tech sector moves fast. Companies are building new tools in AI, cloud computing, and cybersecurity that didn’t exist a few years ago. That constant innovation creates entirely new markets and new chances for investors to get in early.
3. Major force in the US economy: Tech is one huge, fast-moving sector. It makes up roughly 40% of the S&P 500 and is the largest sector by market value. US tech spending is also expected to grow to $2.7 trillion in 2025.
4. The growth story isn’t over: Even with all this scale, there is still room to grow. As more businesses and countries go digital, the demand for tech will keep rising. That means US tech stocks could continue to play a big role in global growth for years to come.

How to Identify the Best US Tech Stocks?

Finding strong US tech stocks starts with knowing what to look for in different types of companies. Here are some simple checks that can help:

• Semiconductor companies: Look for steady demand in areas like AI and data centers. These companies should be growing revenue at a healthy pace and maintaining strong profit margins.
• Cloud providers: Check if their cloud businesses are growing consistently. Large investments in infrastructure are also a good signal that they’re planning for future growth.
• Software companies: Focus on recurring revenue. Usually, growth in subscription income and high customer retention points to a stable, scalable business.
• E-commerce platforms: Watch for growth in how much is being sold on their site, expansion into new markets, and profits from both retail and cloud segments.
• Major players: For giants like Apple, Meta, and Alphabet with wide reach and strong balance sheets, keep an eye on their product pipeline, global footprint, and how they’re navigating regulatory changes.

How to Invest in US Tech Stocks from India?

You can invest in US Tech stocks from India using INDmoney. All you need is to open a US Stocks account on the app, complete the KYC, add money to your US Stocks wallet, and start investing. Here’s a step-by-step guide to help you out:

Step 1: Open a US Stocks account with INDmoney and complete the simple digital KYC process.
Step 2: Fund your US stock account. Under the Reserve Bank of India's (RBI) Liberalized Remittance Scheme (LRS), you can remit up to $250,000 per financial year.
Step 3: Explore and research the wide range of top tech stocks or tech-focused ETFs available on the US stock market on INDmoney app.
Step 4: Search & Invest in companies like Broadcom, IBM, Meta, Salesforce, and others. You can start with just Rs 100 and buy fractional shares

Risks of Investing in US Tech Stocks

Tech stocks in the US do offer big opportunities, but there are some key risks to think about before you invest:

• Unpredictability: Tech companies often grow fast, but it also means that often their stock prices swing wildly. Big expectations can lead to big swings and small disappointments can cause large drops. So, beware of volatility risk.
• Expensive: Most well-known tech stocks trade at high valuations because investors expect strong future growth. However, if a company fails to deliver, the stock can take a hit.
• Regulatory Spotlight: More often than not, large tech companies get a lot of unwanted attention from regulators. Issues around privacy, competition, and global trade rules can create challenges, which is a risk you need to watch out for.
• The industry moves fast: Tech changes quickly, sometimes as quick as a few weeks. A company that is leading today might fall behind if it does not keep up with innovation.

In short, investing in tech can be rewarding, but it helps to go in with your eyes open. Look at the bigger picture, not just the hype.