Many an investor grows tired of hearing about gains in the so called Magnificent Seven stocks. The market’s growth this year has been dominated by the mega-cap tech stocks.
The 2023 main players are Alphabet (NASDAQ:GOOG/NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT) and Tesla (NASDAQ:TSLA). The concentrated gains in a few leading tech names is especially frustrating if an investor doesn’t own those particular stocks and missed this year’s bull run.
However, other tech stocks offer a silver lining, ones that have performed well this year and still showing more upside ahead. Investors can still get in the game before their next leg higher. Let’s explore three of the top ones outside the Magnificent Seven you can grab right now.
Advanced Micro Devices (AMD)
Investors who missed the tripling of Nvidia’s stock this year should consider taking a position in rival chipmaker Advanced Micro Devices (NASDAQ:AMD). Shares of AMD are up a healthy 83% in 2023. But that’s less than half the 240% run in NVDA stock.
Also, analysts see more upside ahead for AMD stock. The median price target on the shares is 11% higher than current levels. Analysts have been revising their targets in recent weeks after AMD issued strong third-quarter financial results.
AMD reported Q3 earnings per share (EPS) of 70 cents compared to the 68 cents expected by Wall Street. Revenue totaled $5.8 billion versus the forecast of $5.7 billion, increasing 4% from a year earlier. However, the showstopper was AMD’s 2024 forecast of $2 billion in artificial intelligence (AI) microchip sales.
AMD hopes to take AI market share away from Nvidia with its new MI300A and MI300X microchips that are expected to be among the most powerful available on the market.
Palantir Technologies (PLTR)
For a hot tech stock that’s still flying under the radar, look to the data analytics company, Palantir Technologies (NYSE:PLTR).
Share prices jumped 20% higher after it announced Q3 earnings that beat Wall Street forecasts and raised its full-year revenue guidance. Year to date (YTD), PLTR stock is up 207%. That outperforms Magnificent Seven stocks such as Apple and Microsoft, each of which is up only about 50% on the year.
Palantir’s stock has been soaring high since it reported Q3 EPS of 7 cents compared to 6 cents that was expected among analysts. Revenue in the quarter came in at $558 million versus $556 million that was forecast. Revenue was up 17% in Q3 from a year earlier. Investors like Palantir’s growing commercial work, which now accounts for 33% of its revenue. This is lessening its reliance on U.S. government contracts.
Also, the company raised full-year revenue guidance of $2.21 billion to $2.22 billion, pleasing investors. PLTR stock has now increased 114% since its 2020 market debut.
Pinterest (PINS)
For a tech stock on the rebound, checkout Pinterest (NYSE:PINS). The social media site that allows users to share recipes and videos saw its stock jump 18% after reported Q3 results beat Wall Street forecasts.
PINS stock is now up 37% on the year. It’s a welcome reversal for the company that once flew high during the pandemic when people were trapped at home. Later, however, the stock got knocked lower throughout the 2022 bear market.
Pinterest’s Q3 EPS amounted to 28 cents compared to the 20 cents expected on Wall Street. Revenue rose 11% from a year earlier to $763.2 million. That topped the $743.5 million that analysts expected. Importantly, PINS reports an increase in global monthly active users rising 8% to 482 million during Q3 from a year earlier. Analysts were expecting 473 million monthly active users. Additionally, average revenue per user beat forecasts at $1.61.
On the date of publication, Joel Baglole held long positions in AAPL, NVDA and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
