The technology sector continues to be a cornerstone of the modern economy, driving growth and innovation across various industries. As we navigate through 2024, now is a great time for investors to consider the best tech stocks to buy.
The convergence of advanced technologies such as artificial intelligence (AI), 5G, and digital payments has accelerated the transformation of businesses. In the last decade, retail investors and institutional investors have made a fortune from tech stocks. Despite headwinds in the broader economy over the last 24 months, the technology sector’s resilience remains unwavering. A myriad of companies have emerged even stronger, significantly expanding their revenue, earnings per share and market position.
Whether you’re looking for a stable giant with a diversified portfolio, a leader in semiconductors, or a pioneer in fintech, the tech market has something to offer.
Now, let’s discover the three best tech stocks to buy in July 2024!
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, GOOGL) is undoubtedly one of the best tech stocks to buy in 2024. Its valuation is still reasonable as compared to many of its mega cap tech competitors in artificial intelligence and cloud computing.
If you’re not living under a rock, there is a strong likelihood that you have heard of Alphabet or used its products before. Alphabet, through its parent company, Google, is the largest search engine in the world. It currently holds more than 90% market share in search engine technology. This competitive advantage in the marketplace has contributed immensely to the company’s growth at Google Search and YouTube. Moreover, its cloud computing arm, Google Cloud, will gain momentum in 2024. In Q1 FY24, Google Search and YouTube both delivered impressive double-digit growth. Additionally, its cloud revenue increased 28% year over year to $9.6 billion. The company’s diverse revenue streams, including advertising, cloud services, and hardware products, provide a solid foundation for long-term growth. As digital advertising rebounds and cloud adoption accelerates, Alphabet is well-positioned to capitalize on these trends.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM), a global leader in advanced semiconductors, plays a pivotal role in the development and deployment of 5G technology. The company’s cutting edge chipsets and intellectual property in wireless communications make it a critical player in the tech sector.
Qualcomm was once a struggling tech stock, especially after its slump in the 2023 fiscal year. While many of its semiconductor counterparts rebounded, Qualcomm’s business continued to suffer. Firstly, the brunt of higher interest rates heavily affected its bottom line, as well as the continued slowdown in the handset market. However, the tide is turning and its Snapdragon platform is extremely promising. Its processors include a full suite of AI solutions for smartphones, laptops, gaming, and autonomous vehicles. Additionally, its Snapdragon X Elite AI CPUs are said to run AI models 2X faster than its competitors. This explains why Microsoft (NASDAQ:MSFT) chose Qualcomm’s arm-based AI chips to power its new surface PCs. With a forward price-to-earnings ratio of 18, QCOM stock is among the best tech stocks to buy in 2024.
American Express (AXP)
American Express (NYSE:AXP), while traditionally known as a financial services company, AXP has made significant strides in digital payments and financial technology. The company’s investments in technology have transformed it into a financial powerhouse, providing a range of innovative payment solutions and digital services.
American Express’ focus on enhancing its digital capabilities has paid off, with its mobile and online platforms gaining widespread adoption. Its strategic partnerships and acquisitions in the fintech space have further strengthened its market position. For example, its acquisition of Kabbage in August 2020 has expanded its offerings to small and medium-sized enterprises (SMEs). AMEX is also advancing its digital payments platform with the introduction of digital wallets and tokenization. After delivering strong financial performance in FY23, management anticipates double-digit revenue and earnings per share growth in 2024. In the first quarter of 2024, revenue increased 11% year over year to $15.8 billion. Moreover, new card acquisitions grew sequentially hitting a record 3.4 million. This makes AXP stock one of the best tech stocks to buy as the fintech industry continues to grow over the next decade.
On the date of publication, Terel Miles 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.
On the date of publication, the responsible editor held long positions in GOOG and MSFT.
