There’s more to the current rally in technology stocks than Nvidia (NASDAQ:NVDA). Nvidia stock continues to get the lion’s share of attention from the financial press. However, there are a number of other tech stocks to buy that are posting impressive gains and have exciting things happening at their underlying companies.
Equally important, there are a number of tech stocks to buy now to play the booming artificial intelligence (AI) trade. Despite how it might appear reading the news these days, Nvidia is not the only stock to buy to capitalize on the boom in AI and rising demand for the components that power AI applications and models.
Investors willing to cast a wide net can find plenty of great tech stocks to invest in currently. Here are three tech stock giants to load up on now: June 2024.
Dell Technologies (DELL)
Dell Technologies (NYSE:DELL) looks like a good bet, but don’t take our word for it. Investment bank Morgan Stanley (NYSE:MS) is pounding the table on DELL stock after meeting with management. Morgan Stanley has named Dell a “top pick” and says the company’s share price could rally as much as 40% from current levels. Morgan Stanley encourages investors to capitalize on Dell stock’s pullback after reporting financial results at the end of May.
That pullback looks like it might now be over. In the past week, Dell’s shares have gained nearly 10% on reports of not only the Morgan Stanley recommendation but also news that the company is building servers to run AI chips for xAI, the start-up company being run by Elon Musk. DELL stock had fallen throughout June on concerns about the profitability of the company’s emerging AI server business. The company has now alleviated those concerns.
Dell stock is up 183% over the past 12 months and there are rumors that it may soon be added to the S&P 500 index. Dell is the biggest stock by market capitalization that’s currently not in the benchmark index.
Arm Holdings (ARM)
Speaking of stocks being added to new indices, British chipmaker Arm Holdings (NASDAQ:ARM) is being added to the Nasdaq 100 index, replacing floundering satellite radio provider Sirius XM (NASDAQ:SIRI). The change occurred on June 24 and is part of a quarterly rebalancing, said Nasdaq in a news release. The Nasdaq 100, which is comprised of the 100 largest stocks from the broader Nasdaq Composite index, is rebalanced quarterly and factors in market capitalization and stock performance.
Arm Holdings currently has a market capitalization of $168 billion and its share price is up 164% since the company went public in September 2023. In comparison, Sirius XM’s market cap stands at $11 billion. Its stock is down nearly 50% so far in 2024 and trading at less than $3 per share, making it a penny stock. ARM stock is expected to benefit from inclusion in the Nasdaq 100 as mutual funds and exchange-traded funds (ETFs) that track the index will now buy its shares, giving them a boost.
Broadcom (AVGO)
Another chipmaker that looks to have wind in its sails is Broadcom (NASDAQ:AVGO). The company’s stock has been on a tear ever since reporting better-than-expected financial results and announced a 10-for-1 stock split. Broadcom’s stock popped 12% after the company said that its shares will begin trading on a split-adjusted basis July 15. The split will lower the stock price from about $1,660 currently to $166, making them more accessible to retail investors.
News of the stock split was accompanied by financial results that showed Broadcom is benefitting from red hot demand for AI microchips and processors. The company reported first-quarter EPS of $10.96 versus analysts expectations of $10.84. Revenue totaled $12.49 billion, exceeding the forecasted $12.03 billion. Management said its AI products generated more than $3 billion in Q1 sales. AVGO stock has nearly doubled in the last 12 months.
Analysts like the stock heading into the split. The consensus view among 23 Wall Street analysts is that AVGO stock is a strong buy, with a median price target that is 15% higher than current levels.
On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
