Profitable Tech Stocks to Look into in 2021

If you’re thinking about expanding your portfolio this year, it’s important to understand that it’s a very good time to invest in tech stocks.

A tech stock overview on Worth highlights how the world is increasingly becoming reliant on tech, whether it’s for business, entertainment, or other purposes. Case in point: Apple recently became the first company to reach a market cap of $2 trillion. Meanwhile, video conferencing platforms like Zoom and Microsoft Teams also experienced a surge in stock prices (up to +304.64% within six months). Other tech companies like Amazon and AMD also reported similar increases in a year when so many other industries fell.

However, not all tech stocks are created equal. Some are more profitable and are worth buying than others. So here’s a quick guide on what assets you should be looking into this year.
 

Home fitness equipment

Just because people aren’t willing to enter gyms and crowded places anymore doesn’t mean that fitness is no longer a priority. For example, our earlier post on ‘2 Tech Stocks with Powerful Earnings Growth’ mentioned Peloton — a company that manufactures at-home gym equipment. You might recognize them because of their unique bike design.

Peloton has an app that connects to their fitness equipment and accessories. Today, that app has over 625,000 paying subscribers. At $30/month, that’s a lot of revenue. Sole Fitness, Bowflex, and other go-to smart fitness brands in the market are also seeing a lot of profit.

 

PCB software

Between vehicles and consumer tech products, printed circuit boards (PCBs) are very in demand. True enough, Grand View Research reports that the global flexible PCB market size will climb to $26.8 billion in 2025, with year-over-year growth of 11.2%. As such, the demand for software that can develop PCBs is equally high.

For example, PCB design leader Altium has over 51,000 subscribers on their platform, which is 17% more than 2019’s numbers. They’re also behind the leading PCB software in the industry: Altium 365. Altium 365 is an electronics design tool that unites PCB design, MCAD, and data management in one platform. Big tech companies like Lyft and Square use this tool to create their products. Similarly, computational tech company Cadence received a revenue growth of 14% from Q3 to Q4 2020, making its shares very profitable. Their PCB platform, the Allegro PCB Editor, is also gaining many clients. A lot of eastern brands like Toshiba and Samsung are avid users of their platform.
 

Electric vehicles

It’s no secret that today’s fuel-powered cars are bad for the environment; this is why sustainability is a growing necessity in the automobile industry. One of the main technological solutions being explored to combat this is electric vehicles, or EVs. Indeed, an article on CNBC notes that the production of EVs climbed to more than 1.3 million last year and is predicted to reach 3 million by the end of 2021 — an entire 36% jump. Energy firms creating electric batteries like Tesla, Li Auto, and Nikola have very profitable shares. Similarly, automobile businesses selling EVs like Kia, Porsche, and Jaguar are also good companies to look into.

You may also invest in companies working on EV charging stations, like Switchback Energy Acquisition, TPG Pace Beneficial Finance, and Climate Change Crisis Real Impact I Acquisition.

The tech market is proving to be very strong this year, making today the best opportunity to invest in them. Of course, it’s still important to pay attention to the fluctuations, but the trend is definitely on a upward trajectory.

Image Source: Wikimedia
Credit: Oleg Alexandrov under CC BY-SA 3.0