After a rough 2022, there’s a great deal of opportunity to capitalize on tech stocks that have been overlooked. Better, investing in tech stocks is a great way to diversify your portfolio and benefit from the technology industry’s growth. Tech stocks represent some of the most innovative companies in the world, and their growth potential is immense. In the list below, we have included industry leaders that hold competitive advantages in their respective industries.

Taiwan Semiconductor (TSM)

Taiwan Semiconductor (NYSE:TSM) is one of the world’s leading technology stocks and a major player in the semiconductor industry. With its cutting-edge research and development capabilities, TSMC has been able to stay ahead of its competitors by producing high-performance chips for various applications.

The company has made significant investments in advanced technologies such as 5G, AI, and IoT, enabling it to become one of the most valuable tech stocks on the market. As more people rely on technology daily, TSMC’s stock continues to rise as demand for its products increases. While Warren Buffett’s Berkshire Hathaway (NYSE:BRK.B) owns stocks in various industries, it typically avoids investing in the technology sector. However, TSM is one of the rare stocks to get the nod from this ace investor.

The rationale for investing in the chip foundry company is straightforward – the chips of the company are used in a variety of electronic gadgets. While the technology underpinning these chips is complex, grasping why they are superior to those of other manufacturers can be challenging. TSMC has a unique position in the market, not having to worry about advertising or searching for consumer insights. It produces what its customers request, making this a highly lucrative venture.

At the end of Q4, TSMC reported impressive growth with a 26.7% surge in revenue to $19.93 billion. Impressive numbers are to be expected from TSMC as 54% of its wafer revenue came from its leading-edge technologies segment (7 nm chips or smaller). This highlights its capability to stay ahead in the tech industry.

Netflix (NFLX)

Netflix (NASDAQ:NFLX) rules the video streaming market and invests heavily in content to ensure its users remain engaged. The company spends vast amounts of money annually to stay ahead of the competition. And its recent results show Netflix is not going anywhere.

In the fourth quarter, Netflix significantly exceeded expectations by adding 7.66 million paid subscribers. This was far greater than the 4.57 million estimated by Wall Street analysts. Netflix reported a lower-than-expected EPS due to issues linked with its euro debts. Surprisingly, its margins of 7% still managed to exceed Wall Street’s anticipations. This dip in the U.S. dollar versus the euro during Q4 was not attributed to any operational losses.

For the first time, Netflix’s financial results in this quarter include its new ad-supported service launched in November last year. However, it has not revealed what percentage of its new users have chosen this low-priced subscription option.

During the company’s prerecorded earnings call, Netflix said it had seen comparable engagement from its new ad tier members as it had seen with its regular consumers. Furthermore, there has been a low number of people making the switch from premium to ad-supported plans.The investor reaction to the report was positive, leaving Netflix in an ideal financial position. Even with Reed Hastings stepping down from his role as co-CEO, the stock performance of NFLX remains robust.

Greg Peters, the organization’s COO, was promoted to joint CEO alongside Ted Sarandos. The shakeup is notable, but Hastings will stay on as executive chair. So, again, Netflix investors need not worry. If you want to dive deeper on Netflix and its recent results, check out this excellent article from Louis Navellier and his team. He underlines the potential risks of investing in this growth stock.

Workday (WDAY)

ChatGPT’s emergence has made the AI space increasingly attractive for investors and analysts eager to find the most profitable investments in this era. Consequently, all eyes are now on this breakthrough technology. Unfortunately, there is no way to invest in this technology right now. However, there are plenty of opportunities to invest in AI in 2023. Workday (NASDAQ:WDAY) is a particularly attractive option that you can consider.

Workday has experienced strong growth, with improving revenue and margins. Furthermore, the ever-expanding market for cloud-based solutions offers Workday an impressive chance to keep progressing in the future. Its services provide data-driven decision-making and budgeting when it comes to staffing. These tools ensure companies can plan their finances better and maximize the potential of their teams.

Workday has seen impressive growth in revenue over the past few years, with a 19% rise in 2022 compared to the previous year. Although Workday displayed strong financial performance, its stock price plummeted to more than 50% in 2022; this creates an excellent opportunity for investors to acquire the company’s shares at a discounted rate.

On the publication date, Faizan Farooque did not hold (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.