7 Top-Rated Tech Stocks Worth Taking a Risk On

Even though the technology sector has had a challenging few months, tech stocks are an excellent investment for growth investors. You just need to know where to look.

Tech stocks are attractive because they represent companies on the cutting edge of innovation. The companies representing tech stocks are developing and manufacturing software, hardware, semiconductors and telecommunications equipment. Some are involved in technologies such as the Internet of Things, artificial intelligence and machine learning.

These companies are revolutionary, and it’s fun and profitable to be on the ground floor for life-changing innovation. It also means that tech stocks can be highly volatile, so they aren’t for every investor.

I enjoy using the Portfolio Grader to weed out the bad stocks and find top-rated tech stocks with the greatest growth potential. Here are seven tech stocks that are appealing now.

FSLR	First Solar	$233.81
ANET	Arista Networks	$138.63
NATI	National Instruments	$58.01
MSI	Motorola Solutions	$292.96
SMCI	Super Micro Computer	$134.50
ARRY	Array Technologies	$21.97
ACLS	Axcelis Technologies	$122.11

First Solar (FSLR)

First Solar (NASDAQ:FSLR) is at the forefront of harnessing green energy to support the power grid rather than relying on fossil fuels. Companies like First Solar are getting an added boost from the Inflation Reduction Act signed into law in Washington.

The law encourages the development of green technologies by providing $10 billion in new tax credits.

BloombergNEF’s latest Clean Energy Outlook report says the Inflation Reduction Act will help green energy companies create 356 gigawatts of new solar capacity by 2030, pushing the nation’s total annual capacity to more than 600 GW. That would be enough power for 660 million homes.

First Solar is rapidly expanding, spending $1.2 billion to scale production of its photovoltaic solar modules. It announced last week that it’s buying Evolar AB, a Swedish maker of a thin film for solar panels, for $80 million.

FSLR stock is up 53% this year and has an “A” rating from the Portfolio Grader.

Arista Networks (ANET)

Arista Networks (NYSE:ANET) develops, markets and sells cloud networking solutions. It claims more than 7,000 cloud customers around the world.

Its Arista EOS (Extensible Operating System) helps customers build and manage large-scale networks. It uses artificial intelligence and machine learning to create software products and management tools that help customers automate their businesses and provides security.

Earnings for the first quarter included revenue of $1.35 billion, a 54% increase from a year ago, an EPS of $1.43 beat analysts’ expectations for $1.35.

ANET stock is up 14% in 2023 and has an “A” rating in the Portfolio Grader.

National Instruments (NATI)

National Instruments (NASDAQ:NATI) provides software and hardware products for engineers, helping them design and deploy measurement and automation systems.

It operates in the aerospace, defense, semiconductor and transportation spaces. Its top product, LabVIEW, helps users create custom applications for data acquisition, instrument control and analysis.

Revenue in the first quarter set a record high of $437 million for the company, up 13% from a year ago.

But the most interesting thing about National Instruments is a pending deal with Emerson (NYSE:EMR) that would see the latter buy NI for $8.2 billion.

The deal, which values NATI stock at $60, is expected to close in the first half of Emerson’s fiscal 2024 year.

Emerson must also complete its sale of Climate Technologies to Blackstone (NYSE:BX) in an $8 billion deal. So there are still some hoops to jump through.

There’s only about a 3% profit if you get a new position in NATI stock. But if the economy crumples as some believe it will and NI’s stock price falls, it wouldn’t be a bad idea to pick up some shares for a bit of security when you cash in next year.

NATI stock has an “A” rating in the Portfolio Grader.

Motorola Solutions (MSI)

For a company nearly 100 years old, Motorola Solutions (NYSE:MSI) is doing an excellent job of staying on the cutting edge of new technology.

The company was first in the business of making car radios. Now it produces two-way radios, mobile devices and software most often used by law enforcement and first responders.

It recently won new contracts to support the city of Chicago, the U.S. Air Force and Portugal’s public safety communications network.

Revenue in the first quarter was $2.17 billion, up 14.7% from a year ago, as the company reported strong demand for command center software, video security and land mobile radio devices.

Net non-GAAP earnings were $2.22 per share, beating analysts’ expectations of $2.08.

And the profits should continue. Motorola said it ended the first quarter with a record backlog of $14.1 billion, up 5% from a year ago.

MSI stock has an “A” rating in the Portfolio Grader.

Super Micro Computer (SMCI)

California-based Super Micro Computer (NASDAQ:SMCI) doesn’t have the most original name. But the company has some creative solutions for the IT industry. Supermicro sells server systems, motherboards, power supplies, networking equipment and more.

One factor that rates highly in the Portfolio Grader’s rankings is momentum – and few stocks are showing as much positive momentum as Supermicro right now.

The company’s stock price is up 63% this year and 172% in the last 12 months.

Earnings for the company’s fiscal third quarter of 2023 aligned with expectations—revenue of $1.28 billion and earnings of $1.63 per share. Revenue decreased slightly from last year, but EPS rose about 5%.

However, the company’s stock price jumped by 28% when SMCI forecasted fiscal Q4 revenue of $1.8 billion and EPS of $2.46. That was much higher than Wall Street’s expectations for $1.64 billion in revenue and EPS of $1.76.

As long as the momentum and strong earnings remain, SMCI stock will continue to get a solid rating from the Portfolio Grader. Currently, it has an “A” rating.

Array Technologies (ARRY)

Array Technologies (NASDAQ:ARRY) is another way to play solar energy. But unlike First Solar that makes solar panels, Array helps solar panels work better.

The company creates the solar tracker technology and machinery needed to position solar panels throughout the day so they’re following the sun. As interest in solar energy continues to grow, Array will have a broader market to develop.

Earnings for the first quarter were a blowout win. Revenue of $376.7 million was 25% better than a year ago and beat analysts’ expectations of $322.8 million. Earnings of 25% per share were much better than Wall Street’s expected 4 cents per share.

ARRY stock is up 13% this year and has an “A” rating in the Portfolio Grader.

Axcelis Technologies (ACLS)

Much as Array helps solar panels work better, Axcelis Technologies (NASDAQ:ACLS) helps semiconductor chips work more efficiently.

Its next-generation Purion platform uses an ion implanter technology in the chip fabrication process, letting manufacturers create better chips with fewer errors in the production process.

Semiconductors are becoming more of a part of our daily lives. As our reliance on semiconductors increases, Axcelis will be a more significant part of tomorrow’s infrastructure. ACLS stock is up 53% this year and has an “A” rating in the Portfolio Grader.

On the date of publication, Louis Navellier had a long position in ANET. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.