Diversified Tech Leaders Outshine Electric Car Maker

The tech sector has outperformed every other sector in the past decade, with the S&P 500's tech sector up 771% as of August 21.

Two stocks that can be considered for a portfolio are Amazon and Microsoft, both of which have diversified businesses that contribute to their growth potential.

Amazon has e-commerce, cloud services through AWS, Prime Video, advertising, Whole Foods, and a pharmacy arm. Its cloud business, AWS, accounted for 61% of its operating income in the second quarter while accounting for only 21% of its revenue.

Microsoft also has diversified businesses, including software, cloud platform Azure, Windows operating system, hardware, Xbox, LinkedIn, advertising, and GitHub. Cloud computing is a significant contributor to Microsoft's growth, with its Intelligent Cloud segment generating $39.3 billion in revenue, up 32% year-over-year.