During the “Web 2.0” boom, which was roughly from the early 2000s to the mid-2010s, engineers at Facebook (META), Apple (AAPL), Netflix (NFLX), and Google (GOOGL) were focused on building consumer internet products such as music streaming and photo-sharing apps. Furthermore, workplaces were known for their relaxed culture, with beanbag meetings, free sushi lunches, craft beer on tap, and even complimentary dry cleaning. However, that era, which was centered on creating mobile apps and social networks, has largely ended as the focus has now shifted to artificial intelligence.
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Indeed, according to The New York Times, today’s “hard tech” era revolves around AI concepts like neural networks, large language models, and high-demand GPUs such as Nvidia’s (NVDA) H100. Innovation has also migrated from Silicon Valley’s traditional hubs, including Menlo Park and Palo Alto, to San Francisco, where startups like OpenAI and Anthropic are leading the AI market. At the same time, tech giants such as Google are hiring less aggressively as managers prioritize efficiency over perks.
It is also worth noting that cultural and political shifts have followed, thanks to a rising group of “Liberaltarians” who support progressive social issues but oppose heavy regulation. In addition, defense and weapons technology, which was once unpopular among startups, is attracting new investment. As a result, founders are no longer focused on building social media apps but are instead looking to create superintelligent machines that could surpass human capabilities.
Which Tech Stock Is the Better Buy?
Turning to Wall Street, out of the five stocks mentioned above, analysts think that NFLX stock has the most room to run. In fact, NFLX’s average price target of $1,395.19 per share implies more than 19% upside potential. On the other hand, analysts expect the least from NVDA stock, as its average price target of $185.79 equates to a gain of 3.2%.
