Technology stocks have driven the stock market to new all-time highs over the past year. In fact, the Technology Select Sector SPDR ETF (ticker: XLK) more than doubled the S&P 500’s total return over the past 12 months. For more than a decade, short-term underperformance in the tech sector has consistently turned into a long-term buying opportunity, and that trend is likely to continue into 2024.
But inflation and rising interest rates remain headwinds for tech companies’ earnings in the short term, making stock selection important. Here are the 10 best tech stocks to buy today, according to analysts at CFRA Research.
| stock | Implied upside from January 26th closing price |
| Apple Inc. (AAPL) | 9.1% |
| Microsoft Corporation (MSFT) | Four% |
| Nvidia Inc. (NVDA) | 14.7% |
| Broadcom Corporation (AVGO) | -8.7% |
| Advanced Micro Devices Company (AMD) | -15.4% |
| Adobe Corporation (ADBE) | 14% |
| Salesforce Co., Ltd. (CRM) | 7.2% |
| Accenture PLC (ACN) | 0.8% |
| Cisco Systems Corporation (CSCO) | 5.5% |
| Intuit Inc. (INTU) | -4.6% |
Apple makes the iPhone, iPad, Apple Watch, Mac computers, and other personal computing devices. The company’s services division includes the App Store, Apple Music, iCloud, and licensing businesses. Analyst Angelo Gino said Apple has a large and loyal global customer base and a growing addressable market. Gino said Apple has a great combination of massive free cash flow generation, aggressive capital returns and growth opportunities such as foldable iPhones, advertising, games and bundles. He said lower component costs and improved product mix could further boost Apple’s profit margins. CFRA has a buy rating on AAPL stock, a price target of $210, and a closing price of $192.42 on January 26th.
Microsoft is the world’s largest software company, best known for its Windows, Office, and Azure cloud services. Gino said that while Microsoft’s artificial intelligence technology is the biggest reason to buy the stock, the company also has continued growth opportunities in cloud computing areas such as Office, Dynamics, Teams and Azure cloud services. He says generative AI products will boost Microsoft’s revenue in the coming years. Additionally, Zino said that Microsoft’s acquisition of Activision Blizzard will create new growth potential in the gaming space. He expects revenue growth of 14% in fiscal 2024. CFRA rates MSFT stock a “strong buy” and has a price target of $420 (versus the January 26 closing price of $403.93).
Nvidia designs and markets high-end graphics and video processing chips used in desktop and gaming personal computers, workstations, and other advanced computing servers and supercomputers. Not only is Nvidia the best-performing stock on this list over the past year, it’s up 200% in 12 months, making it the best-performing stock in the entire S&P 500. Gino said Nvidia has an impressive pipeline of cutting-edge chips. Additionally, cloud infrastructure upgrade spending is creating unprecedented demand for Nvidia products. He expects revenue growth of 41% in fiscal 2025. CFRA rates NVDA stock “buy” and has a price target of $700 for NVDA stock, which closed at $610.31 on January 26th.
Broadcom is a diversified analog semiconductor supplier. Gino said Broadcom will be another big winner of the AI infrastructure boom, which will support demand for the company’s networking and switcher businesses and sales of application-specific integrated circuits. Additionally, he said Broadcom’s acquisition of VMware will create significant cost synergies. Gino said Broadcom’s extended chip supply agreement with Apple and the fact that 40% of the company’s total revenue is now software sales means Broadcom’s financial visibility is better than ever. He said it had become. CFRA has a buy rating on AVGO stock, a price target of $1,100, and a closing price of $1,204.88 on January 26th.
Advanced Micro Devices Company (AMD)
Shares of microprocessor and graphics semiconductor stock Advanced Micro Devices are up a hefty 5,098% over the past decade, but given AMD’s central processing unit data center server growth prospects and increases. , Gino says the stock still has room to rise. Next generation EPYC processor. He also expects AMD’s recent successes to improve the company’s balance sheet and reduce risk for investors. Zino predicts margin expansion in 2024 due to new product launches and stable demand for his PC-related business. CFRA has a buy rating on AMD stock, a price target of $150, and a closing price of $177.25 on January 26th.
Adobe makes creative content software and other applications used in marketing and e-commerce. Zino said Adobe is dominant in several major creative content markets and has an opportunity to further monetize its products by integrating AI technology. He said Adobe also has opportunities to cross-sell its various products to existing customers. Zino says the company’s Firefly generative machine learning models are seeing significant customer interest across a variety of Adobe platforms. He says generative AI services will also increase user adoption and subscription revenue. CFRA rates ADBE stock “buy” with a price target of $700 and a closing price of $613.93 on January 26th.
Salesforce is the world’s largest provider of cloud-based customer relationship management (CRM) software. Although Salesforce’s impressive revenue growth may finally be starting to slow, Zino says Salesforce is still gaining market share, has an attractive valuation, and has significant revenue growth potential. It states that there is. He says that Salesforce’s acquisitions over the years have allowed the company to build the most comprehensive portfolio of his CRM products to date on the market and differentiate it from its competitors. Zino is also encouraged by Salesforce’s AI efforts, including the Einstein GPT tool. CFRA rates CRM stock a “strong buy,” with a price target of $300 and a closing price of $279.94 on January 26th.
Accenture is a global information technology services company specializing in consulting and outsourcing. Analyst Brooks Idlet says Accenture is a high-quality company with a strong balance sheet, a diverse customer base and an industry-leading track record of revenue growth. Idlett said Accenture is also a good defensive investment because its business holds up even during macroeconomic downturns. He said Accenture has positive business momentum and the company’s ability to attract top talent and develop strong relationships with software vendors will continue to create value. CFRA has a “buy” rating on ACN stock, a price target of $374, and a closing price of $371.07 on January 26th.
Cisco Systems Corporation (CSCO)
Cisco Systems provides networking, cloud, and cybersecurity hardware and software solutions. Over the past year, Cisco stock has lagged the broader tech sector, gaining just 10.7%. However, this stock also pays a 3% dividend, the highest yield of any stock on this list. Analyst Keith Snyder said Cisco is weathering near-term headwinds due to component shortages and other factors. Still, the company has several long-term positive catalysts ahead, including the rollout of its 5G core, Wi-Fi 6 upgrade cycle, AI network buildout, and rapidly increasing bandwidth consumption. CFRA has a “buy” rating on CSCO stock, a price target of $55, and a closing price of $52.14 on January 26th.
Intuit makes accounting and management, tax preparation, and personal finance software. Analyst Janice Quek said Intuit is performing well in a difficult macroeconomic environment. Looking ahead, Quek said Intuit has several growth opportunities, including adding new features that will improve engagement and profitability for Intuit’s small and medium-sized business customers. She is particularly optimistic about monetization opportunities for her AI-powered Intuit Assist product at Intuit. Quek said Intuit’s core products, Quickbooks and Mailchimp, have been resilient, with Quickbooks Online accounting for 19% of fiscal sales in the first quarter. CFRA has a “buy” rating on INTU stock, a price target of $612, and a closing price of $641.36 on January 26th.
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