Tech stocks continued to dominate the market in February despite higher-than-expected inflation, dampening hopes for short-term interest rate cuts. The January 2024 Consumer Price Index report released by the Bureau of Labor Statistics on February 13 shows that the U.S. inflation rate has not yet stabilized at the Federal Reserve’s target of 2%, and prices are rising. The inflation rate rose by 0.3% in the month, led by Shelter costs. Offsetting this report, companies such as Nvidia Inc. (NVDA) reported strong earnings. Nvidia reported a 265% year-over-year increase in revenue in February, showing there is no end in sight for the AI boom.
Nvidia’s strong earnings suggest the Magnificent Seven may continue to lead the market, and investors are looking to capitalize on the sector through exchange-traded funds (ETFs) such as the Technology Select Sector SPDR Fund (XLK). Must be closely monitored. So far, XLK is up 46% in the last year, while the Russell 1000 index is up 24%.
Below is an analysis of the best value, fastest screened top technology stocks for March 2024.
Growth, and the most momentum. All data is as of February 21, 2024 for him.
best value tech stocks
Value investing is an investment strategy that allows investors to identify stocks that are trading below their true value.At the point when the market corrects this mispricing, these undervalued names will
The value may go up. Investors typically try to identify undervalued stocks using fundamental metrics such as the price-to-earnings ratio (P/E). A low P/E ratio indicates that a stock is undervalued, as a company is usually valued at less than its fundamental value. These stocks have the potential to deliver greater returns after the market corrects.
| best value tech stocks | |||
|---|---|---|---|
| Price ($) | Market capitalization (market capitalization) ($B) | 12-month trailing P/E | |
| Consensus Cloud Solutions, Inc. (CCSI) | 18.3 | 0.4 | 4.7 |
| SurgePays, Inc. (SURG) | 7.1 | 0.12 | Five |
| Immersion Corporation (IMMR) | 6.9 | 0.22 | 6 |
・Consensus Cloud Solutions Co., Ltd.: The company is the world’s leading digital fax provider, specializing in data conversion for regulated industries and government sectors. We offer a suite of advanced solutions including cloud faxing, digital signatures, AI-driven data extraction, robotic process automation, and healthcare connectivity.
・SurgePays Co., Ltd.: SurgePays, Inc. operates as a technology and communications company focused on underserved populations. The SurgePays platform enables associates at more than 8,000 convenience stores to offer an array of prepaid wireless and financial services to more than 250,000 low-income subscribers nationwide.
·Immersion Co., Ltd.: The company specializes in developing touch feedback technology that creates immersive and realistic experiences in mobile, automotive, gaming, and consumer electronics. On February 14, Immersion entered into a licensing agreement with Meta Platforms, Inc. (META) to incorporate Immersion’s patented haptic technology into Meta’s suite of hardware, software, virtual reality, and gaming products. Announced.
Fast-growing tech stocks
Growth investors believe that a company’s revenue and earnings per share (EPS) growth can be indicators of a strong business with the potential to grow in value. However, the focus is on
Using just one of these two metrics gives an incomplete picture of a company’s growth potential. These numbers can be distorted by circumstances unrelated to a company’s fundamental business strength, such as changes in tax laws, mergers, or one-time gains.
Investopedia uses a dual indicator approach to achieve a more balanced valuation of growth companies. We give equal weight to the most recent year-over-year (YOY) growth rates for both EPS and revenue. This approach aims to reduce the impact of these temporary anomalies and provide a more accurate picture of a company’s true growth pattern and potential. In addition, companies with a quarterly growth rate greater than 1,000% are excluded as outliers.
| Fast-growing tech stocks | ||||
|---|---|---|---|---|
| Price ($) | Market capitalization ($B) | EPS growth rate (%) | Revenue growth rate (%) | |
| Applied Digital Corporation (APLD) | 4.4 | 0.5 | 66 | 242 |
| NVIDIA Corporation (NVDA) | 674.7 | 1,667 | 1262 | 206 |
| New Holdings Co., Ltd. (NU) | 10.1 | 47.3 | 3800 | 86 |
- Applied Digital Co., Ltd.: Applied Digital designs, develops and operates data centers throughout North America for the high performance computing industry. Applied Digital said in its second-quarter fiscal 2024 earnings report that it will power a 200-megawatt hosting facility in Texas and build a 100-megawatt high-performance computing facility in North Dakota. announced that it would start.
- NVIDIA Corporation: One of the world’s largest companies by market capitalization, Nvidia needs little introduction. The inventor of the graphics processing unit (GPU), his Nvidia sparked the growth of PC gaming, refined computer graphics, and now he’s driving the AI boom. NVIDIA’s revenue increased 265% year-over-year, and EPS increased 409% in the same period, the company announced in February.
- New Holdings Co., Ltd.: Nu, a leading digital financial services platform, serves approximately 90 million customers in Brazil, Mexico, and Colombia, and uses its proprietary technology to deliver innovative, simple, and low-cost financial solutions to individuals, small and medium-sized businesses. Provided to companies. In his latest earnings report, Nu said his revenue rose 53% year-over-year to $2.1 billion, reflecting customer growth and enhanced monetization, and his gross profit doubled to $915 million. It was announced that the dollar had been reached.
Most powerful tech stocks
Momentum investing is a strategy that aims to take advantage of existing market trends by focusing on stocks that are outperforming their industry peers and the broader market in terms of returns. This investment principle holds that stocks on an upward trajectory are likely to continue to outperform unless fundamental aspects of the business, industry, or sector change.
Momentum investing is a common strategy applied to tech stocks because they regularly experience major market turbulence. When companies launch new products, announce technological advancements, and quickly gain popularity, investors are likely to take advantage of these stocks while they are still rising.
Here are the tech stocks with the highest total returns over the past 12 months. Stocks with stock prices below $1 are excluded.
| Most powerful tech stocks | |||
|---|---|---|---|
| Price ($) | Market capitalization ($B) | 12 months historical total return (%) | |
| Super Microcomputer Corporation (SMCI) | 734.2 | 41 | 733 |
| Applied Optoelectronics, Inc. (AAOI) | 19.2 | 0.68 | 606 |
| Alam Technologies Co., Ltd. (ALAR) | 11.8 | 0.07 | 456 |
- Super Micro Computer Co., Ltd.: Super Micro provides application-optimized IT solutions for enterprise, cloud, AI, and 5G IT infrastructure. Super Micro has benefited from the AI boom through the expansion of its AI infrastructure offerings, including the integration of new NVIDIA, AMD, and Intel platforms.
- Applied Optoelectronics Co., Ltd.: Applied Optoelectronics is a frontrunner in developing optical products such as components, modules and equipment essential to building broadband fiber access networks around the world. Like Supermicro, Applied Optoelectronics’ stock price has seen a significant rise due to the growing AI trend.
- Aram Technologies Co., Ltd.: Alarum enables customers to anonymously collect data from any public source on the web at any scale, based on the world’s fastest and most advanced secure hybrid proxy network. Alarum reported significant financial improvement in 2023, with a $2.8 million increase in fourth-quarter operating cash flow and a notable increase in annual revenue to his $26.5 million, a 41% year-over-year increase. CEO Shachar Daniel highlighted the performance of its subsidiary NetNut, which contributed more than $21 million in revenue and increased 150% from 2022.
Benefits of tech stocks
growth potential
Tech stocks, especially those in emerging sectors, are known for having some of the fastest growth among publicly traded companies. Anticipating this, investors have invested heavily in periods of poor performance in the sector, as they can expect strong growth over the long term.
But growth for tech stocks can be very different. Many large companies have saturated markets and their total capitalization is already very high, so their growth potential is limited. Small-cap and penny tech stocks that experience technological breakthroughs or suddenly become incredibly popular can have periods of strong growth. Unusually, some of the largest companies in the technology industry, such as Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), and Alphabet Inc. (GOOGL), continue to experience significant growth.
advanced innovation
Technology trends are constantly changing, and companies aim to leverage the latest technology and lead and follow innovation developments. This leaves the field poised for breakthroughs. One of the big recent trends sweeping the technology industry is AI-related technologies, which are increasingly integrated into enterprises across many industries and sectors. As long as some technology companies continue to play their role in enabling this, they stand to benefit from ongoing AI trends.
Disadvantages of tech stocks
Changes in the technology industry
Tech stocks are known for their volatility, where rapid technological change or competitive pressures can lead to large price changes. These companies often have high valuations based on growth expectations and are susceptible to market corrections if they fail to meet these expectations. Additionally, regulatory challenges and geopolitical tensions may impact the sector, creating additional risk and uncertainty for investors.
Trends change quickly
The rapid growth of many technology companies can be attractive to investors who are not familiar with the technology itself. Due to the rapid innovation that characterizes this sector, trends and prospects also change very quickly. Investors unprepared for this pace or lacking knowledge of the fundamental strengths of various technology companies may end up following trends that have already changed.
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growth potential
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advanced innovation
conclusion
The technology sector’s performance in 2024 is expected to be heavily influenced by advances in AI, which are expected to drive long-term growth. The adoption of AI, along with ongoing digitalization and cloud computing, presents promising opportunities, especially for companies involved in semiconductor manufacturing and cloud software services. However, the macroeconomic environment also plays an important role in determining the short-term performance of this sector, which can fluctuate depending on interest rate policy and economic conditions.
Comments, opinions and analyzes expressed on Investopedia are for informational purposes only. Please read our warranty and disclaimer for more information.
As of the date this article was written, the author did not own any of the securities mentioned above.
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