The world's five-most-valuable companies by market capitalization each have prominent positions in technology, leading areas such as consumer products, cloud computing, chip design, and software. As a result, tech stocks are crucial growth drivers in the stock market. The tech-rich Nasdaq Composite index has risen 304% over the past decade, significantly outperforming the S 500's 181% rise.

Consequently, it's not a bad idea to dedicate some of your holdings to this high-growth industry. Chipmakers are particularly attractive now, creating the hardware that makes most tech possible. Among them is Advanced Micro Devices (NASDAQ: AMD), which holds the second-largest market share in graphics processing units (GPUs) and central processing units (CPUs). AMD supplies its chips to companies like Microsoft, Alphabet, and Amazon -- and its stock has climbed 41% over the past 12 months.

However, AMD's earnings have yet to catch up to that growth, making the stock overvalued. In fact, it is currently trading at 228 times its earnings, suggesting it could be best to consider better-valued investment options in this tech sector.  So, forget AMD and consider buying these two tech stocks instead.

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Source Fool.com