Most of the major tech stocks are listed in the US on the Nasdaq index. Since the start of the year, the Nasdaq 100 is down 22%. Such a steep fall does warrant caution from investors like myself who are considering buying stocks within it. However, with £1k to invest right now, I think there are some top tech stocks that are worth snapping up. Here are the two that I want to buy now.
A Warren Buffett favourite
The first tech stock I’m considering buying is Activision Blizzard (NASDAQ:ATVI). In its own words, its creates “the most epic interactive gaming and entertainment experiences on earth, immersing players in new, unimagined worlds.” The share price is down 17% over the past year.
The business model has been working well in recent years, with the company in the process of being bought out by Microsoft. The deal still needs to go through lengthy regulatory approval, so I’m not buying the stock based on this.
Another investor also sees the appeal in buying this top tech stock, none other than Warren Buffett. The legendary investor revealed recently that via Berkshire Hathaway, he now owns 9.5% of the firm’s shares.
As a risk, Activision Blizzard has suffered reputational damages recently due to alleged cases of sexual discrimination and harassment. I’ll watch closely to see how this unfolds.
A long-time top tech stock
Another top tech stock that I like the look of is Intel (NASDAQ:INTC). The share price is down 24% over the past year, having a particularly bad time last week following disappointing results.
First-quarter revenue was down 7% year-on-year, with the forecast for the rest of the year being somewhat underwhelming. I understand this is a risk, with semiconductor chip shortages being compounded by supply chain issues. The lockdowns in Asia are also hindering production for the tech stock.
However, I’m bullish on the company in the long term. Production issues should ease later this year when lockdown restrictions end. Further, Intel has a well-diversified business with revenue coming from AI, computing, graphics and other divisions.
It’s also a tech stock that isn’t as high-risk as some other growth players that are still trying to reach mass to make a profit. In Q1 alone, Intel generated net income of $8.1bn, with a generous operating margin of 23.7%. Therefore, I don’t see it at any immediate risk of slumping to a loss.
The benefits of investing in tech
Even though I like the above US tech stocks, there are other UK-based options that I also find attractive. The great thing about the tech space is that it’s such a broad and fast growing area. As such, there are always new investing options popping up. Unfortunately, I don’t have an unlimited cash pool to invest in everything!
There’s a great piece that goes into detail on some top UK tech stocks, which can be read here. Some share options include Avast, Darktrace, and Ocado Group.