Tech sector has been the best-performing sector in 2017
In this series, we’ll be talking about some of the best performers among the large-cap tech stocks across various metrics. The tech sector has been the best-performing sector in 2017, powered by robust earnings growth and the performances of the FANG (Facebook, Amazon, Netflix, and Google) stocks. While the S&P 500 Index (SPY) has risen 11.8% year-to-date (or YTD), the tech-heavy NASDAQ Composite Index (QQQ) has jumped 19.9%.
Top five large-cap tech stocks
The graph below shows the top five performers in the tech sector in the trailing one-year period. As you can see, most of the stocks belong to the semiconductor sector.
NVIDIA (NVDA) has been the biggest gainer within the large-cap tech sector. The stock has risen a jaw-dropping 197.3% in the last 12 months. The company, which was traditionally a PC graphics chipmaker, is now a leader in AI (artificial intelligence), which is the next big thing in tech, and has also ventured into cloud and enterprise graphics among other areas.
Payment processing company Square (SQ) has seen returns of 147.5% in the trailing-12-month period. The company has grown remarkably over the last few years, exceeding analysts’ lofty expectations. A major reason behind the company’s growth is that customers prefer not to use cash these days.
Video game publisher and distributor Take-Two (TTWO) has risen 121.9% in the trailing one-year period. The stock has given a stellar return over the years thanks to the popularity of its game Grand Theft Auto. The company’s stock has soared by an eye-popping 800% over the last five years.
Advanced Micro Devices (AMD) stock has risen 112.0% in the same period. In the previous quarter, the company’s revenue rose 19% YoY. Its revenue growth was driven by demand in its computing and graphics segments.
Micron Technology (MU) has surged by 109.4% in the same period. The chipmaker has seen growth thanks to the increasing prices of NAND memory and DRAM (dynamic random access memory) due to supply shortage.