5 tech stocks to watch in 2014

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5 Tech Stocks to Watch in 2014

2013: A banner year for tech stocksTechnology has been a fantastic area for investors over the last several years.

For example, the Nasdaq Composite, a tech-oriented index, has outperformed the S&P 500 over the last one, three, and five years.

^IXIC data by YCharts2

Tech investing in the year aheadLets take a look at five tech stocks that investors should have on their radars in the year ahead.

Source: http://upload.wikimedia.org/wikipedia/commons/9/92/New_Year_Ball_Drop_Event_for_2012_at_Times_Square.jpg3

Himax Technologies (Nasdaq: HIMX)

Himax grabbed investors attention last year when it was announced that Himaxs technology helps power Google Glass.A rising star in wearables

http://upload.wikimedia.org/wikipedia/commons/2/25/Google_Glass_Explorer_Edition.jpeghttp://seekingalpha.com/article/1910861-potential-catalysts-for-himax-shareholders-in-2014?source=yahoo4

1 way to play the wearable tech boomThe bullishness around its deal with Google, and the rise of wearable tech in general, sent Himaxs through the roof last year.

However, there are still reasons to be excited for Himax in 2014.

http://upload.wikimedia.org/wikipedia/commons/2/25/Google_Glass_Explorer_Edition.jpeg5

What could keep Himax flying high?With sales of wearable tech poised to take off, and its strong presence in Liquid Crystal On Silicon (LCOS) displays, Himax could see sales grow meaningfully in the years to come.

Other potential catalysts for Himax include possible deals to supply new wearables and dividend increases.

http://www.juniperresearch.com/viewpressrelease.php?pr=4056

Nokia (NYSE: NOK)

With the $7.2 billion sale of its handset business to Microsoft finalizing early this year, Nokia must recreate itself in 2014. How will Nokia do this?Opening a new chapter

http://www.nokia.com/global/about-nokia/about-us/about-us/http://upload.wikimedia.org/wikipedia/commons/thumb/0/02/Nokia_wordmark.svg/500px-Nokia_wordmark.svg.pnghttp://www.microsoft.com/en-us/news/press/2013/sep13/09-02announcementpr.aspxhttp://press.nokia.com/2013/09/03/nokia-to-sell-devices-services-business-to-microsoft-in-eur-5-44-billion-all-cash-transaction/7

Nokias new lookGoing forward Nokia will have 3 core operating divisions:Nokia Solutions and Networks (NSN) Nokias enterprise communications businessFormerly, Nokia-Siemens NetworksHERE Nokias mapping and location servicesAdvanced Technologies Nokias intellectual property licensing and research division

Nokias Money To Burn

After the deal, Nokia will have nearly 40% of its market capitalization in net cash.How Nokia plans to use this cash remains unclear.

Searching for a new leaderAs part of its agreement with Microsoft, many Nokia executives, including former CEO Stephen Elop, will become Microsoft employees.Nokia is in the midst of its own CEO search.According to reports, Nokia is focusing on internal candidates including current interim-CEO Rajeev Suri (pictured).

http://www.bloomberg.com/news/2014-01-16/nokia-said-to-near-ceo-pick-for-future-beyond-handsets.html10

Microsoft (Nasdaq: MSFT)Like Nokia, Microsoft remains in search of its next leader, as long-time CEO Steve Ballmer is set to retire by August.2 Words: New CEO

http://www.microsoft.com/en-us/news/press/2013/aug13/08-23statementpr.aspxhttp://upload.wikimedia.org/wikipedia/commons/2/21/Steve_Ballmer_at_CES_2010_cropped.jpg11

Microsofts evolving short list

According to reports, the short list of potential CEOs include Ericsson CEO Hans Vestberg, former Nokia CEO, Stephen Elop, and Microsofts current head of cloud computing Satya Nadella (listed counterclockwise from top).

http://www.microsoft.com/global/en-us/news/publishingimages/exec/nadella2_web.jpghttp://upload.wikimedia.org/wikipedia/commons/4/4a/Hans_Vestberg.jpg12

A tall order, no matter what

Microsofts share of mobile devices remains frustratingly low.Its new CEO will have to devise a strategy to help Microsoft gain a meaningful presence in mobile going forward.

http://www.idc.com/getdoc.jsp?containerId=prUS2444201313

Advanced Micro Devices (NYSE: AMD)

Much like chip giant Intel, AMD remains frustratingly levered the the overall state of the PC market.And after contracting 10% in 2013, the PC market is widely expected to shrink yet again in 2014.Can AMD continue to grow in 2014?

Expectations remain high for AMDNotching wins in both Microsofts Xbox One and Sonys PlayStation 4 have some investors feeling optimistic about the prospects for AMDs graphics chips.

Riding high into the new year

Aside from its opportunity in console gaming, AMD needs to find new financial drivers.

As mentioned, PCs should remain challenged and AMD has a negligible presence in mobile.

Where will the growth come from?

Apple (Nasdaq: AAPL)After struggling for much of 2013, Apple appears to have a number of positives in store for the year ahead.

Its recent deal with China Mobile should be just one growth driver for Apple.Looking forward to a better 2014

http://upload.wikimedia.org/wikipedia/commons/thumb/f/fa/Apple_logo_black.svg/500px-Apple_logo_black.svg.png17

Expect more capital returnedBillionaire Carl Icahn has been actively urging Apple to increase their buyback program.Apples management says it is currently reviewing its capital return policies.With $130 billion in net cash, Apple should either raise its dividend, buy back more shares, or do both this year.

But will Apple introduce a new product?

CEO Tim Cook has repeatedly hinted that Apple has new products around the corner.Although no one knows, many suspect Apple will enter the $60 billion smart watch market next.

Theres a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and its one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Justclick hereto access the report and find out the name of this under-the-radar company.