Tech stocks fell out of favor in 2022, as spikes in inflation curbed consumer spending and sent the Nasdaq-100 technology sector index plunging 40% throughout the year. However, the market surged in 2023 thanks to excitement over budding markets like artificial intelligence (AI). The same index is up 65% since Jan. 1 and has shown no signs of slowing heading into the new year.

As a result, it might be a smart move to dedicate a larger portion of your portfolio to tech stocks. The market has a reputation for offering consistent gains over the long term, and there's no telling how high it could rise with the power of lucrative industries like AI and cloud computing.

As two of the world's most valuable companies by market cap, (NASDAQ: GOOG) (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) are compelling options. These companies are home to some of the most widely used products, which attract billions of users. They are both investing heavily in the $137 billion AI market and have immense earnings potential there.

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Source Fool.com