Best FAANG-less Tech Stocks

Dive deeper in the tech pool for other key players.

(Image credit: 2015 Getty Images)

Investors have been captivated by a quintet of technology stocks known as the FAANGs: Facebook,, Apple, Netflix and Google’s parent, Alphabet. The FAANGs may still be strong performers, but they aren’t the only way to make money in tech stocks.

(Image credit: Getty Images)

A couple of semiconductor chip makers look compelling: Micron Technology (MU, $38) and Western Digital (WDC, $87). Each has captured a large part of the global market for certain types of memory chips (“DRAM” for Micron and “flash” for Western). Industry consolidation has resulted in strong prices for memory chips. And both firms benefit from robust demand for mobile devices, graphics cards and data centers, says Paul Wick, comanager of Columbia Seligman Global Technology fund. The shares look reasonably priced, he adds, and well positioned for gains. And Western pays a nice dividend: The stock yields 2.3%.

Analysts expect sales for Adobe Systems (ADBE, $147), which makes software for such creative applications as graphics, digital media and web design, to rise 19% over the next 12 months. Customers are signing up for more of the firm’s subscription-based software products and new digital marketing services. Brokerage firm Credit Suisse recommends the stock and expects shares to reach $170 over the next 12 months.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up