Smart Buying

Best FAANG-less Tech Stocks

Dive deeper in the tech pool for other key players.

Investors have been captivated by a quintet of technology stocks known as the FAANGs: Facebook, Amazon.com, 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.

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.

Most Popular

Where's My Refund? How to Track Your Tax Refund Status
tax refunds

Where's My Refund? How to Track Your Tax Refund Status

If you're waiting for your tax refund, the IRS has an online tool that lets you track the status of your payment.
March 2, 2021
Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer
Coronavirus and Your Money

Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer

The IRS has an online tool that lets you track the status of your stimulus checks.
February 19, 2021
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021

Recommended

Bonds: 10 Things You Need to Know
Investing for Income

Bonds: 10 Things You Need to Know

Bonds can be more complex than stocks, but it's not hard to become a knowledgeable fixed-income investor.
July 22, 2020
Why I Like Ginnie Mae Funds Now
Investing for Income

Why I Like Ginnie Mae Funds Now

A portfolio of mortgages should retain their value better than ordinary bonds if interest rates rise.
February 28, 2021
2 Top-Tier T. Rowe Price Mutual Funds
mutual funds

2 Top-Tier T. Rowe Price Mutual Funds

T. Rowe Price's mutual funds typically stand out among their peers, but these two selections provide elite equity and bond exposure for this point in …
February 24, 2021
How Green Are Your Bonds?
Becoming an Investor

How Green Are Your Bonds?

Fixed-income investors can make an environmental impact, too.
February 23, 2021