Investing in Tech Stocks

By Scott Levine – Updated Sep 8, 2025 at 2:46 PM | Fact-checked by Frank Bass

Key Points

Investing in AI-focused tech stocks like Nvidia and Microsoft offers growth as they lead in AI advancements.
Tech ETFs like the Technology Select Sector SPDR Fund provide diversified exposure, reducing individual stock risks.
Apple's new $100 billion investment in a U.S. facility underlines its commitment to expanding its AI capabilities.

The technology sector is vast, comprising gadget makers, software developers, wireless providers, streaming services, semiconductor companies, and cloud computing providers, to name just a few. Any company that sells a product or service heavily infused with technology likely belongs to the tech sector.

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Woman working outdoors with laptop, phone, and headphones. — Image source: Getty Images.

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Hardware Companies

These design and build devices such as:

Personal computers.
Networking servers.
Semiconductors.
Smartphones.
Fitness trackers.
Smart speakers.
Enterprise equipment, such as servers and networking gear.

Software Companies

These design the software that runs on hardware, such as:

Operating systems.
Databases.
Cybersecurity software.
Productivity software.
Cloud computing providers.
Artificial intelligence (AI).

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NASDAQ: MSFT

Microsoft

Today's Change

(0.41%) $2.12

Current Price

$519.78

Key Data Points

Market Cap

$3848B

Day's Range

$517.75 - $525.23

52wk Range

$344.79 - $555.45

Volume

766K

Avg Vol

20M

Gross Margin

68.82%

Dividend Yield

0.01%

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Microsoft (MSFT +0.41%) is a dominant software company known for its Windows PC operating system and Office productivity software. Microsoft is also the second-largest provider of cloud infrastructure, and it provides AI exposure through Copilot, which is available in many different Microsoft products.

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NASDAQ: AAPL

Apple

Today's Change

(-2.28%) $-5.99

Current Price

$256.78

Key Data Points

Market Cap

$3900B

Day's Range

$255.43 - $262.84

52wk Range

$169.21 - $265.29

Volume

1.5M

Avg Vol

55M

Gross Margin

46.68%

Dividend Yield

0.00%

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Apple (AAPL -2.28%) makes the iPhone, iPad, and Mac computers. Intense customer loyalty ensures plenty of repeat customers, and a growing array of services makes Apple's ecosystem sticky.

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NASDAQ: NVDA

Nvidia

Today's Change

(-1.83%) $-3.31

Current Price

$177.85

Key Data Points

Market Cap

$4402B

Day's Range

$176.77 - $183.43

52wk Range

$86.62 - $195.62

Volume

4.3M

Avg Vol

174M

Gross Margin

69.85%

Dividend Yield

0.00%

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Nvidia (NVDA -1.83%) is the premier manufacturer of semiconductors and advanced GPUs critical for not only gaming, but also for AI applications.

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About the Author

Scott Levine is a contributing Motley Fool stock market analyst covering energy, industrials, technology, and materials. He is also a high school English teacher and a small business owner. He holds a bachelor’s degree in English and creative writing from Binghamton University, a master’s degree in secondary education from Adelphi University, and an advanced certificate in school building leadership from CUNY Queens College. A crossword puzzle enthusiast, he has solved more than 3,100 New York Times puzzles with a 97% solve rate.

TMFProudMonkey

@TMFProudMonkey

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.