If you’re searching for top tech stocks to buy now, look no further. The year 2023 has been a roller coaster ride for the equities markets, especially for the tech sector. The S&P500 and Nasdaq indices faced volatility and corrections in the third quarter of the year, as inflation fears and hawkish signals from the Fed weighed on investor sentiment. However, the recent October CPI report and other labor market data showed that inflation pressures and job growth were easing, suggesting that the Fed may have reached the end of its tightening cycle.
This has sparked a rally in the stock market, as investors are now betting rates have likely peaked and will start falling in the middle of 2024. This may be a good time to invest in tech stocks that are on their way to becoming tech giants, as they offer strong growth potential and competitive advantages in their respective fields. Here are three up-and-coming tech titans to transform investors’ portfolios.
Tech Stocks: Palantir (PLTR)
Palantir (NYSE:PLTR) is a software company that specializes in data analytics and artificial intelligence (AI). The company provides platforms and solutions for various sectors, such as defense, intelligence, healthcare, energy, and finance.
Recently, Palantir has entered the AI market with a suite of AI-enhanced analytics solutions, and demand for these solutions is starting to pick up, according to the company’s recent earnings report. While overall revenue for the third quarter increased 17% to $558 million, from $478 million a year earlier, the company’s “U.S. Commercial business segment” increased revenue figures by 37% on a year-over-year (YOY) basis driven by demand for Palantir’s Artificial Intelligence Platform (AIP).
The data analytics firm’s AIP can deploy commercial and open-source large language models onto internally held data sets and, from there, recommend business processes and actions. As Palantir develops more AI tools for clients, its platform will become even more attractive for users.
CrowdStrike (CRWD)
CrowdStrike (NASDAQ:CRWD) is a cybersecurity company that offers cloud-based endpoint protection and threat intelligence services. For those unaware, endpoint security deals with protecting “endpoints” or laptops, tablets, mobile phones, internet-of-things (IoT), and point-of-sale systems against cyberattacks. The company leverages its proprietary Falcon platform and AI to detect, prevent, and respond to cyberattacks. Last year, a report by IDC confirmed CrowdStrike dominated nearly 18% of the $8.6 billion Endpoint Security market.
Rollout of new AI tools, including its Charlotte AI, will help customers to detect and prevent sophisticated cyberattacks from various sources. These new tools will help to increase CrowdStrike’s popularity and influence in the endpoint security market.
CrowdStrike’s share price has nearly doubled year-to-date, and its market capitalization is almost above $50 billion. The company is definitely on its way to being a force to be reckoned with in the wider cybersecurity space.
NetApp (NTAP)
Last on the list of tech stocks to buy is NetApp (NASDAQ:NTAP), a data management company that provides cloud-based storage and data services. The company helps customers optimize their data infrastructure and accelerate their digital transformation. Instead of building its own cloud network, NetApp relies on embedding its storage service within larger cloud services, including Google Cloud, AWS, and Microsoft Azure.
Unfortunately, NetApp’s financial performance since the fourth quarter of 2022 has been disappointing. The main problem has been appetite for cloud services has declined as businesses largely cut back on IT spending. As a result, NetApp’s quarterly revenue has continued to decline from a YOY perspective in 2023. However, as the macroeconomic environment improves, NetApp could continue to increase revenues and improve margins.
There are signs the U.S. economy could avoid a recession, and this should keep NetApp’s current shareholders hopeful for the future.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
