Top 5 technology stocks to watch in 2026

What are technology stocks?

Technology stocks are the shares of publicly listed companies that are involved in the tech sector. They might encompass anything from bioscience to semiconductor companies. They’re usually on the cusp of innovation and often have proprietary services that no one else offers – or very few others.

What makes technology stocks so special?

Tech stocks are often, although not always, either growth, undervalued or momentum stocks. This means there are plenty of opportunities for traders to find companies that could make them a sizeable profit. Having said this, no trade or investment is a guarantee, and you could lose money on any company.

Still, growth tech stocks can flourish, going from being heavily undervalued to market-dominating. Typically, if their fundamentals are right and they have substantial market share, or a monopoly on a technology, they have the potential to make traders a decent profit.

Momentum stocks are also worth considering. These belong to companies that are on a massive growth trajectory and are likely to continue their growth for some time to come.

Finally, the tech sector is always going to be a place to find innovative and well-priced stocks, because progress is speeding up at lightning pace. With new inventions and the optimisation of existing tech constantly occurring, the tech sector is forever poised to deliver returns – if you know where to look.

Risks of technology stocks

While the S&P 500 is expected to continue its bullish trend, positive market sentiment can’t last forever. And although we mentioned momentum stocks can continue their upward trajectory, not all of them will keep growing.

In addition to this, here are a few other risks of trading technology stocks:

• Volatility: All stocks experience volatility, but tech stocks can face more of it than other sectors. This is partly because technology is constantly changing, with new players and innovations always coming onto the scene. Competition is fierce
• Inaccurate valuations: Tech companies might achieve high gross margins but still be unprofitable – especially in their early years. This is because they often spend a chunk of funds on staff and marketing
• Changing regulations: As technology, such as AI, evolves, regulations and laws are being put into place to curb unethical behaviour or misuse. Companies can be crushed under the weight of keeping up with these regulations. On the other hand, this does breed new innovations to help businesses comply 

Top 5 technology stocks to watch in 2026

We selected these five tech stocks for their diversity across geographical locations and their industries. We’ve included stocks based in North America, Africa, the UK and Europe, with industries such as semiconductors, commercial services, telecoms and industrial machinery.

They’ve all also experienced share price increases over the past six months – from 23.45% to 75.70%.

All figures are accurate as of 20 April 2026.

Overview of the stocks in this article

All the stocks on our list can be traded via CFDs with us, and all except MTN Group can be stock traded through our platform.

1. Applied Materials Inc (Nasdaq: AMAT)

Sector: Producer manufacturing

Market cap: US$315.02 billion

Applied Materials is an American leader in materials engineering and the equipment used to manufacture almost every new chip and advanced display in the world. Its business model involves selling the complex machinery and software that semiconductor giants like Intel and Samsung need to produce high-performance hardware.

As AI increases the demand for more powerful chips, Applied Materials provides the factory equipment necessary to build them.

In early 2026, the company announced significant partnerships with SK Hynix and Micron to accelerate the development of next-generation AI memory.

Trader perspectives:

• Stock traders: The company is often seen as a cornerstone of a tech portfolio. The recent 15% dividend hike and long-term R&D partnerships make it attractive for those looking for steady growth and income tied to the global semiconductor race
• CFD traders: The stock often reacts sharply to quarterly earnings and news regarding US-China trade policies. Because Applied Materials is a bellwether for the chip industry, CFD traders can use it to speculate on the health of the entire tech sector with relatively high liquidity

Risks:

• The company is heavily exposed to geopolitical tensions, particularly trade restrictions between the US and China

2. MTN Group Limited (JSE: MTN)

Sector: Communications

Market cap: R349.57 billion

MTN Group is a South African multinational telecommunications giant with a massive footprint across Africa and parts of the Middle East. While its core business is mobile and data connectivity, it’s rapidly evolving into a fintech and digital infrastructure provider.

Its ‘Ambition 2030’ strategy relies heavily on using AI to manage network traffic and offer personalised financial services to its 300 million customers.

Trader perspectives:

• Stock traders: MTN is an emerging markets growth play. The combination of a large share buyback and a significant dividend increase suggest a company that’s confident in its cash generation, making it a potential candidate for those seeking exposure to Africa’s digital economy
• CFD traders: The company’s stock price can be highly volatile due to currency fluctuations in markets like Nigeria. This volatility, combined with high-impact news like the recent 45% dividend surprise, provides ample movement for traders looking to profit from short-term price swings

Risks:

• Operating in multiple jurisdictions means MTN faces constant regulatory and ‘repatriation’ risks – the difficulty of moving profits out of certain countries and back to its headquarters in South Africa.

3. Airtel Africa Plc (LSE: AAF)

Sector: Communications

Market cap: £12.97 billion

Airtel Africa is a UK-listed company that provides telecommunications and mobile money services across 14 African countries. Like MTN, its business model is shifting from voice calls to data and mobile banking. It’s particularly focused on bridging the digital divide by using AI to optimise low-cost network coverage in rural areas.

In late 2025 and early 2026, Airtel Africa announced a landmark partnership with SpaceX’s Starlink to launch direct-to-cell connectivity across Africa. This technology allows standard smartphones to connect to satellites, potentially bypassing the need for expensive ground-based towers in remote regions.

Trader perspectives:

• Stock traders: The Starlink partnership is a potential gamechanger for market share. Stock traders may see Airtel Africa as a more pure-play infrastructure stock compared to its competitors, especially as it builds out its own dedicated data centre business, Nxtra
• CFD traders: The news of senior leadership changes in early 2026 may create short-term price uncertainty that traders often look to exploit

Risks:

• Airtel Africa’s earnings are frequently hit by the devaluation of local currencies, particularly the Nigerian Naira, which can wipe out operational gains when the figures are converted back into US dollars or pounds

4. PagSeguro Digital Limited (NYSE: PAGS)

Sector: Commercial services

Market cap: US$3.28 billion

PagSeguro Digital is a Brazilian fintech company that disrupted the traditional banking sector by providing low-cost payment processing for micro-merchants.

Its business model has expanded into PagBank, a full-scale digital bank. It uses AI for credit scoring and fraud detection, enabling it to offer loans to individuals and small businesses that were previously ignored by big banks.

Trader perspectives:

• Stock traders: The company is currently trading at a valuation that many analysts consider compelling relative to its growth. Those looking for a high-growth tech stock in South America may find PagSeguro’s transition into a profitable digital bank attractive
• CFD traders: The Brazilian market is known for its sensitivity to interest rate changes. As the Brazilian central bank adjusts rates, PagSeguro’s stock often reacts intensely, providing the high-momentum environment that many CFD strategies require

Risks:

• High interest rates in Brazil can increase financial costs for the company and lead to a rise in unpaid loans within its credit portfolio

5. STMicroelectronics NV (Euronext: STMPA)

Sector: Electronic technology

Market cap: €33.24 billion

STMicroelectronics is a European semiconductor giant headquartered in Switzerland. It designs and manufactures a vast range of chips, with a particular focus on the automotive and industrial sectors. As cars become computers on wheels, STM provides the AI-capable sensors and power chips required for electric vehicles (EVs) and automated driving systems.

Its recovery follows a difficult 2025 and is driven by new product launches in the microcontroller space specifically designed for AI applications and data centres.

Trader perspectives:

• Stock traders: After a lengthy downcycle in the chip market, STM appears to be in a recovery phase. The company’s focus on the silicon carbide market for EVs provides a long-term growth narrative for those willing to hold through industry cycles
• CFD traders: STM is currently navigating uncertainty regarding global trade tariffs introduced in early 2026. This creates a news-driven environment where the stock can gully or rally based on political headlines, making it a prime candidate for short-term speculation

Risks:

• The company’s heavy reliance on the automotive industry means that if global EV sales continue to stagnate in Europe and the US, STM’s recovery could stall. It also faces increasing competition from domestic chipmakers in China

How to trade technology stocks with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for technology stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Stock trading

1. Open a stock trading account with IG UAE
2. Search for technology stocks
3. Choose the stock you want to buy – try our stock screener
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about technology stocks

Footnotes
 

1. TradingView, April 2026
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10. TradingView, April 2026