Top Technology Stocks by UQS Score

1102 stocks scored · Last updated May 23, 2026

Technology companies dominate the market for good reason: they scale with near-zero marginal cost, build network effects that lock in users, and reinvest cash flow into R&D that compounds over decades. But not every tech stock deserves a premium. The UQS scoring model separates genuine quality — high ROIC, sustainable margins, and real free cash flow — from unprofitable growth stories propped up by stock-based compensation. The companies below combine strong fundamentals with genuine competitive advantages in software, semiconductors, internet services, and digital infrastructure.

Technology Sector Characteristics

The technology sector includes two GICS sectors in our classification: Technology (software, semiconductors, hardware, IT services) and Communication Services (internet platforms, media, telecom). This grouping reflects the reality that companies like Alphabet and Meta are more meaningfully compared to Microsoft and Apple than to traditional media companies. The sector is characterized by high gross margins (often 60-80% for software), significant R&D spending, rapid revenue growth potential, and winner-take-most market dynamics. The best tech companies generate enormous free cash flow once they reach scale, because each additional unit of software or digital service costs essentially nothing to deliver.

Scoring note: Tech stocks are scored with higher quality thresholds (35% ROIC, 45% operating margin) because the sector's economics naturally support wider margins. A 20% operating margin that looks great for an industrial company is mediocre for a SaaS business.

Technology Sector Score Overview

69

Avg UQS Score

75

Avg Quality

59

Avg Moat

67

Avg Growth

81

Avg Risk

64

Avg Valuation

Top Technology Stocks: Who Leads and Why

#1TSMTaiwan Semiconductor Manufacturing Company Limited83

Taiwan Semiconductor Manufacturing Company Limited leads the technology sector with an overall UQS score of 83, combining a 73 quality score with a 82 moat rating. Its margins and returns on capital set the standard for the sector.

#2NVDANVIDIA Corporation83

NVIDIA Corporation ranks second with a 83 UQS score, excelling across quality (87) and growth (100). Its competitive position translates directly into financial outperformance.

#3ADBEAdobe Inc.76

Adobe Inc. earns the third spot at 76, with particular strength in its moat score (69) reflecting deep competitive advantages that protect its market position.

#4DLODLocal Limited75

DLocal Limited scores 75 overall, with balanced strength across all five pillars. Its 76 risk score indicates a healthy balance sheet backing its growth.

#5APPAppLovin Corporation73

AppLovin Corporation scores 73 overall, with balanced strength across all five pillars. Its 74 risk score indicates a healthy balance sheet backing its growth.

Full Technology Ranking: Top 25 Stocks

#	Stock	UQS	Q	M	G	R	V
1	TSMTaiwan Semiconductor Manufacturing Company Limited	83	73	82	78	95	92
2	NVDANVIDIA Corporation	83	87	80	100	93	45
3	ADBEAdobe Inc.	76	97	69	44	69	100
4	DLODLocal Limited	75	72	53	89	76	95
5	APPAppLovin Corporation	73	88	53	91	74	59
6	MUMicron Technology, Inc.	71	70	49	83	99	64
7	KSPIJoint Stock Company Kaspi.kz	70	70	60	55	77	100
8	METAMeta Platforms, Inc.	70	76	77	56	78	60
9	MSGMMotorsport Games Inc.	69	88	18	70	94	100
10	MSFTMicrosoft Corporation	69	73	85	44	75	62
11	LRCXLam Research Corporation	69	77	66	69	95	33
12	PLTRPalantir Technologies Inc.	69	71	63	92	82	30
13	RDDTReddit, Inc.	69	71	47	97	82	49
14	ADYEYAdyen N.V.	66	54	70	50	100	67
15	GOOGAlphabet Inc.	65	68	84	51	79	34
16	PEGAPegasystems Inc.	65	73	47	51	83	83
17	UIUbiquiti Inc.	65	83	43	67	100	33
18	ASMLASML Holding N.V.	64	75	70	60	67	40
19	ALABAstera Labs, Inc. Common Stock	64	54	56	100	82	29
20	YOUClear Secure, Inc.	64	77	58	52	64	68
21	AAPLApple Inc.	64	80	85	30	61	48
22	QLYSQualys, Inc.	63	87	43	36	68	91
23	GRNDGrindr Inc.	63	79	33	72	61	79
24	NTESNetEase, Inc.	63	75	46	30	82	98
25	CRDOCredo Technology Group Holding Ltd	63	64	40	100	82	32

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Frequently Asked Questions About Technology Stocks

Why are Communication Services companies included in Technology?

The GICS classification separates companies like Alphabet, Meta, and Netflix into 'Communication Services,' but their business models — software platforms, digital advertising, cloud infrastructure — are fundamentally technology businesses. We group them with Technology because investors comparing Alphabet to Microsoft get more useful insights than comparing Alphabet to AT&T. The UQS scoring thresholds match this reality: all companies in this grouping are scored against tech-sector margins and returns.

How does the UQS model handle unprofitable tech companies?

Pre-profit tech companies can still score well on growth and moat, but they'll score low on quality (no margins or ROIC to measure) and often low on risk (if burning cash). The overall UQS score reflects this honestly rather than projecting future profitability. For early-stage tech, the growth and moat pillars are the most informative — they tell you whether revenue is accelerating and whether the competitive position justifies the investment in growth.

What technology sub-sectors score highest overall?

Software companies (especially enterprise SaaS) tend to score highest overall because they combine high quality scores (recurring revenue, high margins) with strong moat scores (switching costs, data network effects). Semiconductor companies often score well on quality and growth but face cyclicality that lowers risk scores. Hardware companies typically score lower on moat due to more commoditized competition.