In the vibrant realm of technology, the spotlight is firmly on the array of tech stocks for 2024. Savvy investors are captivated by these stocks, drawn not just by their powerful market presence but also by their potential for substantial investment growth. As the tech industry undergoes rapid transformation, the allure of these innovative market players is expected to grow even stronger, captivating those keen on staying ahead of the curve.
Moreover, technology companies have experienced remarkable growth over the past year. The Technology Select Sector SPDR Fund (NYSEARCA:XLK), a key fund representing U.S. technology firms, has witnessed an impressive 56% bump this year. In contrast, the broader market, as represented by the SPDR S&P 500 ETF (NYSEARCA:SPY), has grown by 24.3% in the same timeframe.
As 2024 approaches, several emerging tech stocks are gaining momentum, fueled by the explosive growth of generative AI in sectors like semiconductor manufacturing, cloud services, and cybersecurity, and there are three such stocks with significant potential to become standout performers in the tech space.
NVIDIA (NVDA)
Nvidia (NASDAQ:NVDA), a leader in the tech industry, remains a powerhouse that has been on a remarkable run due to its advancements in AI, consistently driving innovation and expanding its influence in the sector.
Financially, the company’s recent financial achievements are remarkably impressive. In the third quarter, the company’s Non-GAAP earnings per share soared to $4.02, surpassing estimates by 63 cents. Additionally, Nvidia’s revenue witnessed a dramatic rise to $18.12 billion, a significant 205.6% increase from the previous year, exceeding expectations by a substantial $ 2.01 billion.
Furthermore, Nvidia’s outlook is promising, with high expectations to match its previous success in selling over 500,000 H100 chips in the upcoming quarter. This momentum is set to enhance its performance in early 2024, possibly elevating share prices. The launch of the H200 chip, as a successor to the H100, reinforces Nvidia’s path of continuous innovation and market dominance.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) has taken a significant leap in the tech sector with its shift towards AI. Launching new AI-driven products and forming the AI Alliance with IBM (NYSE:IBM) has thrust Meta in AI innovation. This strategy reinforces the company’s position as a leading AI innovator in the dynamic tech market.
Moreover, Meta’s financial performance in the third quarter was remarkable. The company’s GAAP earnings per share reached $4.39, surpassing estimates by 76 cents, and its revenue climbed to $34.15 billion, a 23.2% year-over-year increase, exceeding forecasts by $700 million. This financial achievement, culminating in a 4% rise in share value, highlights Meta’s strong market standing and increasing investor trust.
Furthermore, Meta’s partnership with Amazon (NASDAQ:AMZN) exemplifies its strategy for revenue growth. This collaboration aims to streamline shopping on Amazon through integrated advertising on Meta’s platforms. This move not only enhances user experience but also promises to boost both companies’ financial results, reflecting Meta’s innovative monetization and partnership approach.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), renowned for its dominance in tech revenue, is enhancing its allure as a prime tech stock with significant advancements in AI. This was emphatically demonstrated with the debut of its innovative AI model in Gemini. This development not only positions Alphabet as a formidable challenger to OpenAI, the creators of ChatGPT, but also underscores its pivotal role in driving technological evolution.
Financially, Alphabet’s performance mirrors its tech prowess. In the third quarter, earnings exceeded forecasts by 10 cents at $1.55 per share, while revenue surged to $76.79 billion, up 11.1% year-over-year and surpassing expectations by $980 million. A notable contributor to this success is Google Cloud, which reported revenues of $8.41 billion, marking a significant 22.6% increase year-over-year.
Moreover, Alphabet’s Google division recently upgraded the Google Home app, adding 18 new automation features to enhance smart home interactions. In response to these advancements and Alphabet’s overall performance, TipRanks analysts assign a strong buy with a 9% upside potential, highlighting its innovation and strategic vision.
On the date of publication, Muslim Farooque 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.
