What Companies Are In The Technology Field? Top Ten List
Technology has permeated every sector of the economy over the last few decades. Technology stocks have been among the best long-term performers in the market, with the technology sector’s total weighting in the S&P 500 index increasing from 20.7% at the end of 2016 to 29.1% at the end of 2021.
Even Alphabet Inc. (GOOG, GOOGL), Amazon.com Inc. (AMZN), and Tesla Inc. (TSLA), which aren’t technically classified as tech companies by the Global Industry Classification Standard, or GICS, have businesses that revolve around disruptive technology. The following are the world’s ten largest U.S.-listed public technology companies as of Aug. 11, according to the GICS classification.
10. Cisco Systems Inc.
Cisco Systems creates and sells a variety of networking and security products. They’re also one of the top ten technology stocks for 2022. However, it is the only one on the list that had its peak market cap more than two decades ago. During the dot-com bubble of 2000, Cisco was briefly the most valuable company in the world. With nearly a market capitalization of $555 billion. Cisco may not be the growth darling it once was, but it reported a net income of more than $3 billion in the second quarter of 2022.
Market Capitalization: $191.6 billion
9. Accenture PLC
Accenture is a global systems integrator that specializes in consulting, technology, and outsourcing. The Ireland-based technology firm reported fiscal third-quarter revenue growth of 21.8% and net income growth of 15.2% in June. CEO Julie Sweet mentioned five long-term growth drivers during the company’s earnings call: “total enterprise reinvention, talent, sustainability, the Metaverse continuum, and the ongoing tech revolution.” Accenture, also like many other blue-chip tech stocks, generates consistent earnings, revenue, and free cash flow, making it an excellent defensive tech stock investment in a volatile market.
$199.6 billion in Market Capitalization
8. Adobe Inc.
Adobe develops software for the creation of creative content, and the company has successfully transitioned from a desktop-based software company to a cloud-based provider. Also one of three stocks on this list that have gained more than 1,230% in the last decade.
Adobe reported a 14% increase in revenue in the second quarter. However, it disappointed Wall Street by forecasting 12% revenue growth in fiscal 2022, down from 23% revenue growth in fiscal 2021. Despite the slowdown, Adobe’s top products, such as Photoshop, Illustrator, and Premiere Pro, remain market leaders.
$202.1 billion in Market Capitalization
7. Oracle Corp.
Oracle is a database management specialist and one of the world’s largest enterprise software and cloud services providers. Also, they reported a 5.4% increase in revenue in the second quarter, but net income fell 20.9% year on year to $3.19 billion.
Oracle, on the other hand, is a rare value play among mega-cap tech stocks. They share have the lowest forward earnings multiple of any stock on this list, at 13.1 times. Oracle has consistent top-line growth, consistent profits, an appealing valuation, and reinvests excess income in stock buybacks and its 1.6% dividend.
$205.7 billion in Market Capitalization
6. Broadcom Inc.
Broadcom is a diverse analog semiconductor device designer, developer, and supplier. Another 10-bagger in the last decade has gained more than 1,370%. That doesn’t even take into account the stock’s 2.9% dividend yield, the highest on this list and also a rarity among tech stocks.
Looking at Broadcom’s recent numbers, you’d never guess there’s a global chip shortage. The company reported 22.5% revenue growth and 73.5% net income growth in the second quarter. In May, Broadcom announced a $61 billion acquisition of VMware Inc. (VMW), which could significantly boost Broadcom’s software capabilities.
$220.8 billion in market Capitalization
5. ASML Holding NV
ASML, headquartered in the Netherlands, is one of the world’s largest suppliers of semiconductor manufacturing equipment. They are also the world’s only manufacturer of extreme ultraviolet, or EUV, lithography machines, and the global semiconductor market could be worth $1 Trillion by 2030. Chip designers use EUV technology to print ever-smaller chip designs.
ASML does not design or manufacture chips; instead, it creates machines that manufacture cutting-edge chips for Intel Corp. (INTC), Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), and other chipmakers. ASML shares have risen more than 650% in the last decade, and the surge in semiconductor demand shows no signs of abating.
$231.9 billion in Market Capitalization
4. Taiwan Semiconductor Manufacturing Co. Ltd.
Taiwan Semiconductor Manufacturing is the world’s largest contract chipmaker, producing cutting-edge semiconductors designed by Advanced Micro Devices Inc. (AMD), Qualcomm Inc. (QCOM), and other customers. Taiwan Semi’s foundries have become even more important to the tech world in recent years, as Intel has struggled with its in-house manufacturing.
They reported a 43.5% increase in revenue and also a record net income of nearly $7.9 billion in the second quarter. Taiwan Semiconductor was founded in 1987 and has been the leading dedicated global semiconductor foundry ever since, generating a 517% return for investors over the last decade.
Market Capitalization: $431 billion
3. Nvidia Corp.
Nvidia, a high-end semiconductor maker, has been one of the most spectacular growth stories in the stock market since the 2008 and 2009 financial crises. Nvidia’s market capitalization was less than $5 billion in March 2009. Since then, the stock has skyrocketed, sending Nvidia’s market cap to a high of more than $820 billion in late 2021.
Nvidia shares have fallen significantly from all-time highs, but the company continues to produce impressive growth figures. Nvidia reported $8.29 billion in revenue in the most recent quarter, up 46.4% year on year.
Market Capitalization: $453.8 billion
2. Microsoft Corp.
Microsoft is best known for its Windows operating system, Azure cloud services, LinkedIn social media platform, Office professional software suite, and Xbox gaming brand. It’s also one of the older companies on this list, having been founded in 1975 and going public in 1986.
Microsoft reported 12.3% revenue growth in the second quarter of 2022, nearly half a century after its founding, owing largely to 40% growth in Azure and other cloud services revenue. Microsoft also announced a deal in early 2022 to acquire video game publisher Activision Blizzard Inc. (ATVI).
Market Capitalization: $2.14 trillion
1. Apple Inc.
Apple is not only the most valuable company in the world, but it is also the best-performing tech stock on this list in 2022, declining only 5.1% in a difficult market for tech stocks.
They’re one of the most profitable companies in the world, with a net income of $19.4 billion in the second quarter. Apple may be the most valuable stock in the United States, but legendary value investor Warren Buffett believes the stock still has room to grow. Buffett’s Berkshire Hathaway Inc. has by far the largest stock holding (BRK.A, BRK.B).
Market Capitalization: $2.71 trillion