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The Technology sector includes companies that develop and manufacture electronic devices, software, and services. Main sub-sectors are hardware, software, and semiconductors. Examples of Technology stocks available to Canadian investors include NVDA.TO, MSFT.TO, and AAPL.TO.
A Canadian investor may want exposure to the Technology sector for diversification, as it can provide a unique growth profile. This sector is often driven by a strong macro thesis, with companies innovating and disrupting traditional industries.
Canadian investors should consider balance-sheet quality and competitive moat when picking technology stocks. A strong balance sheet can indicate financial health, while a competitive moat can signify a company's ability to maintain its market position.
The technology sector in Canada is often characterized by growth stocks that tend to retain earnings and invest in research and development, resulting in minimal dividend payments. As such, the Canadian dividend tax credit is less relevant for this sector.
NVIDIA (NVDA.TO) — designs and manufactures graphics processing units and high-performance computing hardware. Apple (AAPL.TO) — designs iPhone, Mac and services, while also developing software and semiconductors.
TFSA — Apple, Microsoft and Nvidia pay small dividends — capital appreciation is the main return, and a TFSA shelters all of it from tax with no cap on growth.
The Canadian technology sector is home to a diverse range of companies, including those in the software, hardware, and e-commerce spaces. Some of the most prominent technology stocks listed in Canada can be found on the TSX, and include companies that specialize in areas such as artificial intelligence, cybersecurity,…
In the technology sector, Canadian investors should consider the tax implications of dividend-paying stocks. For U.S. technology stocks, the 15% U.S. withholding tax on dividends can be eliminated by holding them in an RRSP, thanks to the Canada-U.S. tax treaty.
For Canadian investors, the Technology sector offers various investment options. Buying individual stocks can provide exposure to specific companies, but it may also increase risk if the company underperforms.
ETFs | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
AA AAPL.TO Apple Inc. | Technology | TSX | +553 | $6.0T | $43.91 | +51.8% | 35.93 | 0.34% | 1.06 | |
AA AAPL Apple Inc. | Technology | NASDAQ | +553 | $4.6T | US$310.26 | +55.9% | 37.73 | 0.35% | 1.06 | |
MS MSFT.TO Microsoft Corporation | Technology | TSX | +665 | $4.2T | $30.10 | -6.7% | 25.55 | 0.79% | 1.09 | |
MS MSFT Microsoft Corporation | Technology | NASDAQ | +665 | $3.2T | US$427.34 | -8.5% | 26.82 | 0.81% | 1.09 | |
AV AVGO Broadcom Inc. | Technology | NASDAQ | +522 | $2.3T | US$479.23 | +78.7% | 86.92 | 0.58% | 1.44 | |
TS TSM Taiwan Semiconductor Manufacturing Company Limited | Technology | NYSE | +162 | $2.3T | US$436.69 | +109.4% | 35.86 | 0.91% | 1.26 | |
MU MU Micron Technology, Inc. | Technology | NASDAQ | +295 | $1.2T | US$1,079.57 | +704.8% | 45.87 | 0.06% | 1.92 | |
AS ASML ASML Holding N.V. | Technology | NASDAQ | +10 | $665.4B | US$1,726.36 | +119.9% | 53.76 | 0.54% | 1.37 | |
OR ORCL Oracle Corporation | Technology | NYSE | +245 | $662.4B | US$230.33 | +20.1% | 40.46 | 0.89% | 1.54 | |
CS CSCO Cisco Systems, Inc. | Technology | NASDAQ | +287 | $498.6B | US$126.50 | +95.1% | 40.14 | 1.40% | 0.91 | |
LR LRCX Lam Research Corporation | Technology | NASDAQ | +263 | $429.8B | US$343.71 | +273.4% | 60.26 | 0.33% | 1.82 | |
AM AMAT Applied Materials, Inc. | Technology | NASDAQ | +234 | $397.6B | US$500.77 | +172.9% | 42.38 | 0.47% | 1.65 | |
PL PLTR Palantir Technologies Inc. | Technology | NASDAQ | +238 | $326.5B | US$142.20 | +11.1% | 175.89 | — | 1.52 | |
IB IBM International Business Machines Corporation | Technology | NYSE | +209 | $287.3B | US$305.63 | -1.8% | 26.38 | 2.27% | 0.58 | |
TX TXN Texas Instruments Incorporated | Technology | NASDAQ | +241 | $280.8B | US$308.59 | +74.0% | 52.34 | 1.86% | 1.30 | |
KL KLAC KLA Corporation | Technology | NASDAQ | +233 | $277.6B | US$2,125.11 | +143.7% | 54.35 | 0.48% | 1.50 | |
QC QCOM QUALCOMM Incorporated | Technology | NASDAQ | +263 | $263.5B | US$250.01 | +65.2% | 27.02 | 1.47% | 1.49 | |
PA PANW Palo Alto Networks, Inc. | Technology | NASDAQ | +211 | $227.4B | US$280.43 | +39.7% | 156.49 | — | 0.77 | |
AN ANET Arista Networks, Inc. | Technology | NYSE | +222 | $219.6B | US$174.37 | +67.8% | 54.99 | — | 1.67 | |
AD ADI Analog Devices, Inc. | Technology | NASDAQ | +218 | $213.2B | US$437.67 | +87.6% | 61.77 | 1.06% | 1.19 | |
SA SAP SAP SE | Technology | NYSE | +19 | $210.9B | US$180.67 | -42.2% | 25.07 | 1.61% | 0.71 | |
CR CRWD CrowdStrike Holdings, Inc. | Technology | NASDAQ | +195 | $190.3B | US$747.61 | +41.2% | — | — | 1.06 | |
AP APH Amphenol Corporation | Technology | NYSE | +205 | $181.6B | US$147.62 | +51.5% | 42.75 | 0.67% | 1.30 | |
GL GLW Corning Incorporated | Technology | NYSE | +150 | $172.8B | US$200.76 | +302.6% | 87.10 | 0.62% | 1.14 | |
CR CRM Salesforce, Inc. | Technology | NYSE | +227 | $156.1B | US$190.61 | -35.0% | 22.12 | 0.92% | 1.14 | |
UB UBER Uber Technologies, Inc. | Technology | NYSE | +180 | $145.9B | US$71.69 | -19.6% | 17.47 | — | 1.16 | |
DE DELL Dell Technologies Inc. | Technology | NYSE | +156 | $136.9B | US$421.08 | +166.6% | 48.55 | 0.60% | 1.06 | |
SO SONY Sony Group Corporation | Technology | NYSE | +6 | $131.2B | US$22.20 | -16.9% | 20.16 | 0.74% | 0.72 | |
NO NOW ServiceNow, Inc. | Technology | NYSE | +213 | $121.6B | US$117.90 | -50.8% | 74.03 | — | 0.82 | |
CD CDNS Cadence Design Systems, Inc. | Technology | NASDAQ | +220 | $112.5B | US$408.00 | +15.9% | 87.81 | — | 1.13 | |
AC ACN Accenture plc | Technology | NYSE | $108.9B | US$177.43 | -42.9% | 15.33 | 3.49% | 1.07 | ||
FT FTNT Fortinet, Inc. | Technology | NASDAQ | +176 | $107.3B | US$146.48 | +28.3% | 53.48 | — | 0.92 | |
AD ADBE Adobe Inc. | Technology | NASDAQ | +221 | $103.6B | US$256.24 | -41.2% | 15.11 | — | 1.42 | |
SN SNPS Synopsys, Inc. | Technology | NASDAQ | +161 | $95.4B | US$498.02 | +2.6% | 108.59 | — | 1.25 | |
NO NOK Nokia Oyj | Technology | NYSE | +6 | $93.4B | US$16.73 | +193.7% | 92.75 | 1.10% | 0.77 | |
AD ADP Automatic Data Processing, Inc. | Technology | NASDAQ | +183 | $91.0B | US$227.75 | -29.4% | 20.71 | 3.07% | 0.84 | |
CI CIEN Ciena Corporation | Technology | NYSE | +115 | $87.7B | US$620.37 | +629.4% | 369.57 | — | 1.25 | |
AS ASX ASE Technology Holding Co., Ltd. | Technology | NYSE | $87.6B | US$39.91 | +272.7% | 59.00 | 0.93% | 1.40 | ||
IN INTU Intuit Inc. | Technology | NASDAQ | +218 | $85.2B | US$311.44 | -57.6% | 20.24 | 1.45% | 1.03 | |
NE NET Cloudflare, Inc. | Technology | NYSE | +107 | $84.8B | US$265.33 | +34.2% | — | — | 1.67 | |
SN SNOW Snowflake Inc. | Technology | NYSE | +115 | $83.6B | US$241.28 | -16.8% | — | — | 1.08 | |
MP MPWR Monolithic Power Systems, Inc. | Technology | NASDAQ | +172 | $83.0B | US$1,689.89 | +136.6% | 112.35 | 0.51% | 1.74 | |
DD DDOG Datadog, Inc. | Technology | NASDAQ | +170 | $82.8B | US$250.33 | +90.8% | 618.38 | — | 1.29 | |
NX NXPI NXP Semiconductors N.V. | Technology | NASDAQ | $81.3B | US$321.88 | +63.3% | 30.66 | 1.26% | 1.78 | ||
HP HPE Hewlett Packard Enterprise Company | Technology | NYSE | +151 | $73.2B | US$55.15 | +117.2% | — | 1.32% | 1.29 | |
CL CLS.TO Celestica Inc. | Technology | TSX | +41 | $73.1B | $636.06 | +204.1% | 46.71 | — | 1.48 | |
LI LITE Lumentum Holdings Inc. | Technology | NASDAQ | +121 | $73.0B | US$938.00 | +1153.0% | 151.59 | — | 1.53 | |
ST STM STMicroelectronics N.V. | Technology | NYSE | +1 | $70.8B | US$79.71 | +170.6% | 433.19 | 0.52% | 1.51 | |
MS MSI Motorola Solutions, Inc. | Technology | NYSE | +186 | $67.8B | US$408.39 | -2.9% | 32.58 | 1.20% | 0.94 | |
TE TER Teradyne, Inc. | Technology | NASDAQ | +141 | $64.1B | US$409.67 | +349.1% | 69.45 | 0.14% | 1.79 |