Technology companies shape the future of many different industries. From robotics and artificial intelligence to information and analytics, many exciting innovations occur in this sector, and you can share in that growth by investing in tech stocks. The best tech stocks offer potentially outstanding returns, but it's a volatile sector and many once-solid companies have fallen to upstart competitors, regulatory concerns or their own inefficiencies.
Understanding risk and reward is crucial for any successful investing. Unfortunately, tech stocks have had a rough year as inflation and high interest rates do no favors for companies that depend on growth and innovation. However, rising rates don’t mean investing in tech is unwise. On the contrary, adding tech stocks to your portfolio can create profitable investments even if economic conditions seem less than ideal. In the next section, you’ll learn how to add the best companies to your portfolio without taking unnecessary risks.