S&P 500   4,320.06
DOW   33,963.84
QQQ   357.91
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Buy This Stock for AI Tidal Wave (not NVDA) (Ad)
MarketBeat Week in Review – 9/18 - 9/22
How major US stock indexes fared Friday, 9/22/2023
S&P 500   4,320.06
DOW   33,963.84
QQQ   357.91
52-week Low Names To Tip The Upside Scale In Your Favor
Buy This Stock for AI Tidal Wave (not NVDA) (Ad)
3 Reasons This Sleeping Giant Is About To Wake Up
KB Home Price Weakness is a Signal to Buy this Cash Machine
Buy This Stock for AI Tidal Wave (not NVDA) (Ad)
Things to know about California's new proposed rules for insurance companies
Analysts Went All In On These Computer Stocks, Save Your Spot
Buy This Stock for AI Tidal Wave (not NVDA) (Ad)
MarketBeat Week in Review – 9/18 - 9/22
How major US stock indexes fared Friday, 9/22/2023
S&P 500   4,320.06
DOW   33,963.84
QQQ   357.91
52-week Low Names To Tip The Upside Scale In Your Favor
Buy This Stock for AI Tidal Wave (not NVDA) (Ad)
3 Reasons This Sleeping Giant Is About To Wake Up
KB Home Price Weakness is a Signal to Buy this Cash Machine
Buy This Stock for AI Tidal Wave (not NVDA) (Ad)
Things to know about California's new proposed rules for insurance companies
Analysts Went All In On These Computer Stocks, Save Your Spot
Buy This Stock for AI Tidal Wave (not NVDA) (Ad)
MarketBeat Week in Review – 9/18 - 9/22
How major US stock indexes fared Friday, 9/22/2023
S&P 500   4,320.06
DOW   33,963.84
QQQ   357.91
52-week Low Names To Tip The Upside Scale In Your Favor
Buy This Stock for AI Tidal Wave (not NVDA) (Ad)
3 Reasons This Sleeping Giant Is About To Wake Up
KB Home Price Weakness is a Signal to Buy this Cash Machine
Buy This Stock for AI Tidal Wave (not NVDA) (Ad)
Things to know about California's new proposed rules for insurance companies
Analysts Went All In On These Computer Stocks, Save Your Spot
Buy This Stock for AI Tidal Wave (not NVDA) (Ad)
MarketBeat Week in Review – 9/18 - 9/22
How major US stock indexes fared Friday, 9/22/2023

Finding New Technology to Invest in: A Guide

Key Points

  • Tech stocks have been some of the biggest winners over the last decade-plus.
  • New emerging technologies such as AI, cloud computing and cybersecurity offer exciting future opportunities.
  • However, the market environment has shifted, and conditions are no longer friendly to capital-hungry tech companies.
  • 5 stocks we like better than iRobot

Looking for new technology to invest in? 

Pull up a seat and join the club. 

New tech is always one of the more popular and exciting investment ideas since groundbreaking tech advancements tend to attract gobs of money. However, tech is a volatile sector, and these companies only sometimes experience success on a linear basis. 

Investors looking for straightforward profits may get frustrated, but new tech will always have an allure that few other industries can match. This article will review some of the more prominent ideas in new technology.

Overview of New Technology

One of the core tenets of any new technology is the reduction of friction. How can our lives be made easier by advances in these fields? Think of past instances of how new tech improved or simplified our lives. For example, remember having to write and mail a check if you wanted to pay a bill? It happened, and it was terrible! 

Fast internet and smartphones allow consumers to pay with the swipe of a touchscreen. If you're looking for the best new technology to invest in, consider advances that reduce some tedious or difficult activity and look for the tech companies honing in on these ideas.

Artificial Intelligence (AI)

Artificial intelligence is already one of the focal points for technology stock investors in 2023. Thanks to new programs like OpenAI's ChatGPT, millions now have access to at least a rudimentary form of AI. While plenty of people use ChatGPT to cheat on their college courses, the foundation has been established, and new advances could take AI from novelty to necessity. 

For starters, autonomous vehicles and robotics could significantly change how the labor force operates worldwide. Driverless cars could reduce congestion, limit pollution and open up land currently required for parking. While robots taking human jobs has always been the biggest AI-induced fear, a more hopeful scenario exists where robotics makes dangerous jobs safer, like mining or utility maintenance.

Infographic showing new technology to invest in

Cloud Computing

Cloud computing is one of the newer technologies that is easy to visualize. Cloud computer systems allow sharing of data, resources and power that can significantly reduce time, costs and strain on networks and servers. For example, companies can outsource cloud computing services to third parties, significantly cutting IT services and infrastructure costs. Instead of requiring expensive servers and time-consuming maintenance, data could be stored offsite and accessed by anyone within the company. Multiple employees could simultaneously operate on the same files and programs, improving productivity and cutting costs. The International Data Corp. (IDC) estimates total spending on cloud computing services will reach $1.3 trillion by 2025.


Cybersecurity

To store sensitive data on the cloud, then cybersecurity will become an even more critical focus than it is today. In 2023, cybersecurity firms should take in more than $162 billion in revenue. By 2028, that number could exceed $256 billion as more and more developing nations begin to come online.

Every company with an online footprint needs a cybersecurity strategy to protect its data and services from malicious attacks. Even individuals protect their personal information with cybersecurity systems since data breaches occur frequently, and remote work is becoming more prolific across all industries.

The Metaverse

The metaverse is a new spin on an old idea. Virtual reality platforms have been around for a while. Still, the metaverse is the idea that entire virtual worlds can occur where participants can engage with each other for business and leisure, not just to level up their video game avatars (although immersive online gaming remains a big selling point). Facebook founder Mark Zuckerberg has bet big on the metaverse, even rebranding his company Meta Platforms Inc. NASDAQ: META

Internet of Things (IoT)

Similar to cloud computing and the metaverse, the Internet of Things (IoT) uses the interconnectedness of various networks and systems to increase efficiency and supply better data to end users. What are the "things" of IoT? 

They can be anything, such as smart home devices that change temperature and lighting or connected cars that can appropriately gauge maintenance requirements to increase safety or inefficiency. You can even get a toothbrush that connects to an app that monitors oral health and brushing habits. 

While not getting yelled at by the dentist for poor flossing is a major perk, the IoT can provide use cases for many other cutting-edge tech innovations like cloud computing and machine learning.

Space Exploration

Commercial space travel and exploration seemed like pure science fiction a few years ago. And while we aren't likely to be taking trips on the Starship Enterprise anytime soon, recreational space travel has become a reality, at least if you have the cash to pay for the trip. SpaceX and Blue Origin are two private companies making headway on commercial space travel, as is Richard Branson's publicly traded Virgin Galatic Holdings Inc. NYSE: SPCE

Why Invest in New Technology?

New tech investments can have multiple purposes. Many investors genuinely believe in the transformative powers of these innovations and want to be on the "right side of history" with their portfolios. While investing for the prosperity of future generations is a nice idea, nobody puts capital into an investment for entirely unselfish reasons. New tech can make a lot of money, and investors in some of the highest-rated tech stocks have been more than fairly compensated.

Even in one of the worst market environments for tech companies (persistent inflation and rising interest rates), the top tech stocks underperformed the S&P 500 by less than 6%. Now consider how the best tech stocks did compared to the S&P 500, when market conditions were friendlier. When looking for future technology to invest in, the goal is outperformance, which is why this area attracts so many risk-tolerance investors. 

How to Find New Technology to Invest in

Wondering how to invest in new technology? While you can't buy shares of the metaverse or artificial intelligence directly, you can invest in innovative companies seeking to bring new tech advances to the public sphere. Here are a few steps to get started on your journey: 

Step 1: Research trends and innovations in emerging technologies.

Some of these latest trends in new technology have more plausibility than others. While it may be hard to fathom an entire Fortune 500 company holding seminars and meetings in virtual metaverse buildings, it's easy to imagine AI and robotics simplifying dangerous jobs and increasing the efficiency of repetitive processes. 

Of course, your experience and opinion may vary, so every investor needs to research emerging technologies and choose the innovations that best fit their worldview. For example, if you don't believe that commercial space travel is a viable business, you won't look to invest in companies building passenger spacecraft. When looking for new tech to invest in, you'll choose the areas you think have the best chance of scaling and becoming profitable.

Step 2: Select the types of new technology you wish to invest in.

After researching the trends in new tech, you'll need to choose the innovations to invest in. Which types of emerging tech have the most potential? You may think all the types of new tech listed here have future viability, or you're only interested in cloud computing or cybersecurity. A simple pros and cons list for every kind of new tech is often a good way to establish a foundation. As famed money manager Peter Lynch once said, "Invest in what you know."

Step 3: Find public companies working on these new tech areas.

After choosing the tech with the most potential, you'll need to find public companies working to develop these features. No shortage of options here! Thematic ETFs are an excellent place to start, where you can buy bundles of tech companies in a single security. An ETF like the iShares U.S. Technology ETF NYSE: IYW offers exposure to a broad sample of large-cap tech companies, while funds like the Global X Robotics and Artificial Intelligence ETF NASDAQ: BOTZ focus on a specific tech theme.

If you want to pick tech stock yourself, you'll have to consider large and small companies, domestic or international. If your focus is AI and robotics, you can invest in juggernauts like NVIDIA Corp. NASDAQ: NVDA and Microsoft Corp. NASDAQ: MSFT or smaller companies like iRobot Corp. NASDAQ: IRBT and C3.ai Inc. NYSE: AI.

Step 4: Perform due diligence on company stocks.

Now that you have a list of companies operating in your preferred emerging tech areas, you must research them diligently. Tech isn't a sector for investors with weak stomachs; blistering highs mixed with plummeting prices is something any investor in this sector will experience with enough time. MarketBeat has plenty of tools to help with your stock research, such as the dividend screener or the conference call transcript calendar.

The more tools you utilize, the better you'll understand the strengths and weaknesses of these companies. To find the best new technology companies to invest in, you'll need to dig deep into balance sheets, conference calls and analyst projections.

Step 5: Buy shares and monitor your investments.

Tech risk is well known, so you'll need to keep a close eye on your investments, especially if you're buying individual stocks in a sector as volatile as this one. Set clear goals and limits for your investments so you can buy and sell more dispassionately. It's easy to get caught up in the hype and try to catch falling knives when investing in new tech. Stick to your plan, and don't let emotions get the best of you.

New Tech Offers Enticing Investment Trends

Looking for technology to invest in was a common theme of the low-interest rate era following the Great Recession, but now rates are rising, and inflation remains stubborn. If you've been investing for less than a decade, you likely have never seen an environment quite like this one. Tech stocks have been resilient (especially ones deep into AI and microchips like NVIDIA), but they often require constant capital and borrowing money isn't as easy as it used to be. Real winners may take a few years to emerge for these new segments.

FAQs

Here are a few frequently asked questions about investing in new technology:

What is the best technology to invest in?

The answer depends on which tech trends you think hold the most promise; you can't guarantee anything. Remember, many serious investors didn't believe the internet would be profitable, let alone lead to large-scale global change.

What new technology stocks can you buy?

You can invest in companies focused on specific areas like AI or cybersecurity or buy tech-themed ETFs that cover broad or slim sections of the market.

What are some new and emerging technologies?

New trends in emerging tech include AI and robotics, cloud computing, cybersecurity, the metaverse, the Internet of Things and space travel and exploration.

Should you invest $1,000 in iRobot right now?

Before you consider iRobot, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and iRobot wasn't on the list.

While iRobot currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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MarketBeat just released its list of 10 cheap stocks that have been overlooked by the market and may be seriously undervalued. Click the link below to see which companies made the list.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
iRobot (IRBT)
1.9693 of 5 stars
$37.30-0.1%N/A-2.73Hold$51.00
iShares U.S. Technology ETF (IYW)N/A$104.87+0.2%0.36%21.40N/AN/A
Meta Platforms (META)
2.5591 of 5 stars
$299.08+1.1%N/A34.86Moderate Buy$319.79
Microsoft (MSFT)
2.9507 of 5 stars
$317.01-0.8%0.86%32.72Moderate Buy$375.03
NVIDIA (NVDA)
3.3031 of 5 stars
$416.10+1.4%0.04%100.51Moderate Buy$555.70
C3.ai (AI)
1.712 of 5 stars
$24.51-4.4%3.67%-10.47Hold$26.36
Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ)N/A$24.57+0.4%0.20%31.09N/AN/A
Compare These Stocks  Add These Stocks to My Watchlist 

Dan Schmidt

About Dan Schmidt

Contributing Author: Stocks, Fundamental and Technical Analysis

Dan is an accomplished finance writer with previous experience creating content for Vanguard, Capital One, Benzinga and PerformLine. A 2008 graduate of Penn State University's journalism program, Dan currently resides in the Philadelphia area with his wife and two cats. When he's not writing about finance, Dan enjoys weight lifting, playing poker and arguing with his fellow Phillies fans about Rhys Hoskins.
Contact Dan Schmidt via email at dan.schmidt7@gmail.com.

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