U.S. Stock Introduction for Beginners: Why Are These 8 Tech Stocks Worth Watching?

From 2022 to 2023, U.S. technology stocks experienced a significant correction, with many high-quality companies’ share prices falling sharply. This pullback presents opportunities for long-term investors and is often referred to as a “value return period” in many U.S. stock recommendations. For novice investors interested in entering the tech sector but unsure where to start, this edition of U.S. stock picks focuses on 8 representative tech giants to help you quickly understand each company’s investment logic.

Opportunities in Tech Stocks: Finding Value Amidst the Pullback

Looking back to early 2022, the market was exuberant about cryptocurrencies, NFTs, and the metaverse, but this enthusiasm was short-lived. By fall, the NFT market had declined over 90%, the crypto market entered a winter, and the metaverse story remained at the conceptual stage. This experience reminds investors that blindly chasing trends is unwise, and carefully selecting companies with solid fundamentals is key to long-term profits.

Therefore, we have selected 8 high-quality companies in the tech industry with genuine revenue growth and clear business models. This U.S. stock recommendation list is suitable for beginners to choose suitable targets.

Apple (AAPL): Buffett’s Confidence Choice

Investment Logic

If you want to “copy” the investment master, Warren Buffett is undoubtedly the first choice. As of the end of 2024, Berkshire Hathaway’s largest stock holding is Apple, accounting for over a quarter of its portfolio. This is no coincidence but stems from Apple’s strong moat.

Apple has over 2.2 billion active devices worldwide, and this large user base continues to drive service revenue growth. Whether it’s subscription services, app store commissions, or financial services, high user stickiness ensures revenue stability. Brand loyalty and user engagement will be long-term drivers of Apple’s services growth.

NVIDIA (NVDA): Beneficiary of the AI Wave

Investment Logic

The explosive popularity of ChatGPT has changed the trajectory of the entire tech industry. In this AI computing chip race, NVIDIA has become a core beneficiary thanks to its excellent GPU technology. Whether it’s OpenAI, Google, or Baidu, these AI models run on NVIDIA’s high-performance chips.

More importantly, NVIDIA not only supplies chips but also collaborates with tech giants like Microsoft, Oracle, and Google to provide cloud AI services. This indicates NVIDIA is upgrading from “selling hardware” to “building an ecosystem.” In the AI industry chain—from infrastructure to applications—NVIDIA is almost everywhere, ensuring long-term growth potential.

Broadcom (AVGO): From High Dividend to Value Turnaround

Investment Logic

Broadcom focuses on infrastructure-level chip design in the semiconductor supply chain, serving rapidly growing markets like cloud computing, IoT, and 5G. The demand in these areas is increasing daily, providing stable growth space.

Compared to other tech stocks, Broadcom’s appeal also comes from its outstanding dividend policy. The current dividend yield exceeds 3%, well above the market average. Over the past five years, Broadcom’s dividend growth has approached 30%, making it attractive for investors seeking cash flow returns. Combining industry growth potential with high dividend policy, Broadcom represents a balance of growth and income.

Amazon (AMZN): The Market’s Forgotten Giant

Investment Logic

Despite macroeconomic uncertainties, Amazon’s performance remains surprisingly resilient. Its streaming subscription business has high user retention, even after price increases, with no significant loss. Meanwhile, Amazon’s advertising business is eating into the market share of Google, Meta, and others, with little targeted response from competitors.

These seemingly modest innovations are transforming Amazon’s profit structure from reliance on e-commerce commissions to diversified income streams. For value investors, Amazon with solid fundamentals and reasonable valuation is worth continued attention.

Adobe (ADBE): The Unbeatable Software Ecosystem

Investment Logic

From creator of PDF to Photoshop dominance, Adobe has built an unshakable software ecosystem. Nearly every professional using a computer interacts with Adobe’s products daily, and even ordinary users find it hard to avoid their software.

Latest financial reports show Adobe’s Document Cloud is becoming a new growth engine, with management confident in achieving sustained double-digit growth. This product stickiness-driven growth is highly resilient. Monopolistic product positioning and endogenous growth from upgrades underpin Adobe’s long-term value.

Netflix (NFLX): Turning the Tide in Streaming Wars

Investment Logic

Netflix has long faced competition from giants like Disney and Comcast. To counteract ad spending restrictions, Netflix boldly launched a dual model of “subscription + advertising,” initially met with skepticism.

However, recent subscriber data shows that the introduction of ad tiers has attracted new users, with growth returning to an upward trend. This indicates market demand for “more affordable paid options.” As Netflix emerges from stagnation, improved fundamentals could lead to valuation recovery.

Google (GOOG): The Search Empire’s Defensive Strength

Investment Logic

The advent of ChatGPT once raised concerns about Google’s search dominance. When Google hurriedly showcased its Bard system but experienced errors, the stock dropped over 7% in a single day. But this overly pessimistic reaction seems exaggerated.

Search statistics show Google still controls over 89% of global search traffic, a share that has not significantly weakened in recent years. In the short term, conversational AI is unlikely to change consumer search habits. Coupled with a relatively reasonable P/E ratio, Google remains attractive for long-term investors. As the undisputed leader in search, with room to adapt to AI, Google maintains a strong competitive moat.

PayPal (PYPL): The Rebirth of the Payment Ecosystem

Investment Logic

PayPal suffered a heavy blow in 2022, with its stock price falling over 80%. However, from a fundamental perspective, this decline far exceeds its intrinsic value.

Currently, PayPal has over 435 million active accounts, providing a solid monetization foundation. The company announced that 75% of free cash flow will be used for share buybacks, a strategic move amid current market conditions—buybacks can effectively boost earnings per share. Coupled with a relatively low P/E valuation, PayPal presents a market-mispriced value opportunity. From deep undervaluation to value recovery, PayPal’s turnaround potential is significant.

Start Your U.S. Stock Investment Journey

Choosing the right stocks is just the first step. If you are a beginner in U.S. stock trading, start by thoroughly understanding the fundamentals of these 8 companies. Regularly review their financial reports and industry trends to gradually build your own investment decision framework.

Every market correction contains opportunities. This U.S. stock recommendation list aims to help you quickly focus on companies truly worth holding long-term. Remember, the core of investing is selecting companies with solid fundamentals and clear growth drivers, and these 8 tech stocks are especially worth paying attention to in the current market environment.