The Best Tech Stocks to Buy in January for 2026 Gains

It's been a good year for the stock market. The S&P 500 index rose by nearly 18% in 2025 despite a 15% market correction in April. That's a 33% swing from the lows.

Investors owe much of their good fortune to the technology sector, which continues to carry the broader market as artificial intelligence (AI) drives optimism and investment dollars into chips, data centers, and other AI-related opportunities.

It's becoming increasingly difficult to find deep discounts in the tech space, although there are still some deals worth checking out. Here are three top-notch tech stocks investors can buy to start 2026 on a high note.

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1. Microsoft

Tech giant Microsoft (NASDAQ: MSFT) may not be a new or exciting name, but it offers stability and upside in a way that most AI stocks cannot. Its Microsoft Cloud segment, which encompasses established software products such as Windows, Microsoft 365, and Dynamics, among others, provides a strong financial foundation for Microsoft. It also continues to grow; revenue increased by 26% year over year in the company's first quarter of its fiscal year.

Meanwhile, AI demand continues to drive growth in its Intelligent Cloud segment, as AI primarily operates through the cloud. The segment's revenue increased by 28% year over year in the first quarter of its fiscal year 2026, representing an annual run rate of just over $120 billion. Azure's revenue grew by 40%. As it becomes an increasingly larger part of Microsoft, it could start to accelerate the company's total growth rate.

That sets the stage nicely for this year. Microsoft stock has performed well this year, rising 15%. Analysts currently estimate next year's earnings per share at $18.75, valuing shares at a price-to-earnings (P/E) ratio of 26. That's a fair price tag for a company that analysts anticipate will grow earnings at a 16% to 17% annualized rate over the long term. It's rarely a poor decision to buy world-class companies at fair prices.

2. Motorola Solutions

No, Motorola Solutions (NYSE: MSI) doesn't sell the name-branded cellphones you may know already. Motorola Solutions spun that business off years ago. The company that remains today specializes in communications equipment and software for law enforcement, schools, government agencies, and corporate clients. Its products include radios, video security systems, body cameras, police drones, and software for command centers.

Earlier this year, Motorola Solutions acquired Silvus Technologies for $4.4 billion. The company specializes in proprietary communications technology for people and equipment in challenging environments where regular cell or radio networks may not be available. Motorola Solutions has an opportunity to integrate and sell this technology to its broader customer base.

Analysts estimate the company will grow earnings by 9% annually over the next three to five years. The stock currently trades at 25 times its full-year earnings estimates, a solid discount to its 10-year average P/E ratio of 32. Motorola Solutions is a rock-solid business worth buying on its current dip and holding into 2026 and beyond.

3. Automatic Data Processing

Business has been good for Automatic Data Processing (NASDAQ: ADP) for decades. Companies worldwide depend on ADP (as it's better known) for technology tools essential for payroll, compliance, training, and other employee-related functions. Managing human resources is a complex subject for various reasons, and most companies would rather outsource that to a company such as ADP.

ADP is a widespread player in the global workforce and economy. As populations grow and businesses flourish, more people having more jobs lay a solid foundation for steady growth. The company has raised its dividend for 50 consecutive years, earning it the title of Dividend King. ADP continues to deliver, with an average dividend increase of 11.5% annually over the past decade.

That consistent excellence should continue. Analysts estimate that ADP will continue to grow its earnings by 9% annually over the long term, providing ample growth to power solid dividend raises for the foreseeable future. The stock currently trades near its 52-week low, valuing shares at 23 times full-year earnings estimates. It's a nice buying opportunity for a proven and consistent winner.

Justin Pope has positions in Automatic Data Processing, Microsoft, and Motorola Solutions. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.