The 7 Best Tech Stocks to Buy for February 2023

Tech stocks continue to be a major player in the stock market in 2023. Driven by ongoing innovation and investment, big-name turnarounds suggest that Feb. could be the beginning of a sharp upward trend for tech stocks. In fact, here are seven of the best tech stocks to consider for the year.

Best Tech Stocks: Impinj (PI) 

Impinj (NASDAQ:PI) is a technology company specializing in providing solutions for the Internet of Things (IoT). Its products and services include radio-frequency identification (RFID) systems and software. Impinj’s tracking chips connect items and devices to the cloud. The RFID technology that underpins its products and services are especially useful for retail, logistics, and transportation sector firms that need to track physical assets for analytical and other purposes. 

One of the primary reasons to believe that PI stock will rise this month is its sales guidance. The company recently revised its current quarter guidance upward. Impinj had given a prior guidance range for this quarter between $71.5 to $73.5 million. However, it recently raised that guidance to at least $76 million for the quarter. That positive development, in combination with the positive Fed news of lower interest rate increases, should be a  powerful catalyst for Impinj. 

Best Tech Stocks: Meta Platforms (META)

Meta Platforms (NASDAQ:META) is a prime example of how quickly fortunes can change for the better. The Facebook parent company had been largely jeered for its hard pivot to the metaverse during 2022. The tech company has invested heavily in virtual and augmented reality (VR/AR) solutions. The company is focused on creating immersive experiences through its hardware and software products. These products include AR smart glasses and VR headsets. But screenshots of its metaverse have become meme fodder. Detractors have gone so far as to suggest that the rebranding would be the death of the company. 

But the stock market is a place where a ‘what have you done for lately’ mentality rules. So Meta’s recent upbeat outlook, a $40 billion share buyback plan, and a renewed focus on efficiency are benefiting its shares in a big way. Meta’s revenues were dealt a blow when Apple’s (NASDAQ:AAPL) privacy measures reduced data access in early 2021. In response, Meta developed AI-based tools to improve ad targeting. Revenues could soon be higher than they were prior to Apple’s privacy changes. That strongly suggests that Meta is back and the story of its pivot is still being written. 

Insulet (PODD) 

Investors should also consider Insulet (NASDAQ:PODD), a medical device company that specializes in insulin pump systems for people with diabetes. The company is well known for its ‘Omnipod’ insulin delivery system that offers a discreet and user-friendly option for people with insulin-dependent diabetes.

Insulet won’t report earnings again until Feb. 23 but investors should understand that the firm’s growth has been impressive thus far. Q3 earnings, released in early Nov., showed revenues of $340.8 million. That represented a 23.7% increase on a year-over-year basis. Insulet’s Omnipod product accounted for $326.1 million, or 95.7% of the firm’s total revenues in Q3. Omnipod revenues grew 25.3% YoY. 

Insulet’s international Omnipod sales decreased 5.5% in Q3, to $88 million. But the company also received CE Mark approval in Q3 which opens up its international market access. It should be able to rebound and increase international sales while continuing its already strong top-line results. 

Microsoft (MSFT)

Microsoft’s (NASDAQ:MSFT) stock is still in limbo following its earnings release on Jan. 24. Analysts are digesting its weak overall sales growth, the lowest in six years. The result is trepidation that growth has stagnated at the company. Microsoft’s guidance for $51 billion in revenue for the current quarter, which would represent 3% growth, doesn’t help to reduce pessimism. 

But I think there’s good reason to believe that Microsoft is on the cusp of a new paradigm in which it is able to achieve a lot more with a lot less. The reason to believe that lies in its Azure cloud platform. Microsoft is heavily leveraging AI models into its cloud which grew 22% in the quarter with $27.1 billion in revenue. 

The company laid off 10,000 workers as tech firms seek greater efficiency. Overhead is shrinking while Azure and its AI investments promise greater productivity overall. Lower overall headcount reduces expenses. And AI investments could turbocharge Azure’s growth. The combination could fundamentally improve MSFT stock in a major way. 

Seagate Technology (STX) 

Investors should also consider Seagate Technology (NASDAQ:STX), which specializes in data storage solutions. The company is one of the largest manufacturers of hard disk drives (HDD) in the world serving individuals and businesses. Its products are used in a wide range of end applications ranging from desktop computers to data centers. 

Seagate Technologies has already shown significant positive momentum in 2023. Shares have increased in price from $51.88 to $72.31 as of writing. Although STX shares are currently fully priced, meaning they trade at or above their target price, they can move higher.

A high-level overview of Seagate Technologies suggests that its late 2022 business restructuring is being well received by the markets. While revenues dropped to $1.887 billion in the quarter, down from $3.116 billion a year ago, share prices are surging. The company is launching a 30-plus terabyte HAMR-based product family in the June quarter and it seems market anticipation is enough to keep prices rising. 

Salesforce (CRM) 

Salesforce (NYSE:CRM) is a technology company specializing in customer relationship management software. Its flagship product, also called Salesforce, is one of the most widely used CRM platforms in the world, offering a range of tools and services for sales, customer service, marketing, and more.  That said, Salesforce continues to face the dual threat of increasing competition and an economic downturn. Internally, Salesforce has suffered from a mix of low growth and profitability that decreased share prices substantially in 2022. 

Salesforce anticipates reaching $50 billion in revenues and 25% margins by early 2026 though skeptics remain. However, CRM stock has the might of powerful institutional investors behind it. Both Elliot Management and Inclusive Capital have taken significant positions (1)in the company. Salesforce remains the big dog in the customer relationship management software sector by far and that cannot be disregarded. Its dominant position is being challenged but sector leaders have a way of rebounding due to scale. 

Netflix (NFLX) 

Netflix (NASDAQ:NFLX) looks like one to consider this month and beyond. On the revenue front, Netflix reported $7.85 billion, up slightly from the $7.71 billion it recorded a year earlier. But the particularly positive news was that its subscriber growth of 7.66 million new users well exceeded the 4.5 million management had earlier projected. 

Netflix users have largely adopted its new ad-supported pricing updates without killing subscriber growth in the process. That’s the main takeaway investors should understand about Netflix. Its crackdown on password sharing hasn’t had the effect of slowing subscribership. And Netflix’s content continues to draw critical acclaim with titles like Wednesday, Glass Onion, Troll, and Harry and Meghan remaining popular. In short, it looks like Netflix may have weathered the worst of the storm and come out pretty strong as a result. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.