We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Solid Tech Stocks to Buy as Nasdaq Hits All-Time High
Read MoreHide Full Article
The Nasdaq Composite had a solid 2023, and the rally has continued into this year. The tech-heavy Nasdaq ended 1.1% higher at 16,274.94 points on Mar 1, after jumping 0.9% to close at an all-time high of 16,091.92 in the previous session.
The index has jumped 8.4% year to date after recording a whopping 43.4% in 2023, its best year since 2020. Wall Street has been on a high this year, with the S&P 500 and the Dow hitting new all-time highs in early February.
Nasdaq was a bit slow in catching up, but it finally caught up in the race on the last day of February, which saw the index gain 6.1% for the month.
Nasdaq’s unstoppable rally follows a not-so-memorable 2022 when tech stocks took a beating as soaring interest rates weighed on growth stocks. However, major tech companies have since soared and pulled Nasdaq out of troubled waters.
The recent rally is being driven by the ongoing enthusiasm around artificial intelligence (AI) that has been helping major tech stocks and the broader market.
Rally Driven by Enthusiasm Around AI
Although the opinions of AI experts, especially on the prospects of generative AI, remain divided, the enthusiasm surrounding the space has been tremendous over the past year. According to many, AI is still taking baby steps, and the world is yet to see its potential.
Once that happens, it will create significant business opportunities for technology companies to manufacture premium products.
NVIDIA Corporation (NVDA - Free Report) has been leading the AI revolution with its generative AI chipsets. The company reported robust fourth-quarter 2023 earnings and the company has issued an upbeat outlook. NVIDIA’s success has been inspiring other players, too, which is aiding the broader market.
Also, the development of other smart devices is helping the space as they necessitate computing and learning capabilities for tasks such as face detection, image recognition and video analytics.
These functions demand high processing power, speed, memory, low power consumption, and improved graphic processors and solutions, all of which present favorable conditions for the semiconductor industry.
Also, the semiconductor industry is staging a solid comeback due to this after going through a lean patch till the first half of 2022.
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to artificial intelligence-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA has an expected earnings growth rate of 79.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 17.5% over the last 60 days. NVDA presently sports a Zacks Rank #1.
Netflix, Inc. is considered a pioneer in the streaming space. NFLX has been spending aggressively on building its portfolio of original shows. This is helping Netflix sustain its leading position despite the launch of new services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video.
Netflix’s expected earnings growth rate for the current year is 41.6%. The Zacks Consensus Estimate for the current-year earnings has improved 6.5% over the past 60 days. NFLX currently sports a Zacks Rank #1.
Meta Platforms, Inc. is the world’s largest social media platform. META’s portfolio offering evolved from a single Facebook app to multiple apps like photo and video sharing app Instagram and WhatsApp messaging app owing to acquisitions. Along with in-house developed Messenger, these apps now form Meta’s family of products used by almost 3.96 billion people on a monthly basis as of Sep 30, 2023.
Meta Platforms has an expected earnings growth rate of 34.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 13.6% over the last 60 days. META presently sports a Zacks Rank #1.
Microsoft Corporation is one of the largest broad-based technology providers in the world. MSFT dominates the PC software market, with more than 73% of the market share for desktop operating systems. Microsoft Corporation’s Microsoft 365 application suite is one of the most popular productivity software globally. MSFT is also one of the prominent public cloud providers that can deliver a wide variety of infrastructure-as-a-service and platform-as-a-service solutions at scale.
Microsoft Corporation has an expected earnings growth rate of 18.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the last 60 days. MSFT presently carries a Zacks Rank #2.
Logitech International is a global leader in peripherals for personal computers and other digital platforms. LOGI develops and markets innovative products in PC navigation, Internet communications, digital music, home-entertainment control, video security, interactive gaming and wireless devices.
Logitech International has an expected earnings growth rate of 20.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 13.1% over the last 60 days. LOGI presently carries a Zacks Rank #1.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
5 Solid Tech Stocks to Buy as Nasdaq Hits All-Time High
The Nasdaq Composite had a solid 2023, and the rally has continued into this year. The tech-heavy Nasdaq ended 1.1% higher at 16,274.94 points on Mar 1, after jumping 0.9% to close at an all-time high of 16,091.92 in the previous session.
The index has jumped 8.4% year to date after recording a whopping 43.4% in 2023, its best year since 2020. Wall Street has been on a high this year, with the S&P 500 and the Dow hitting new all-time highs in early February.
Nasdaq was a bit slow in catching up, but it finally caught up in the race on the last day of February, which saw the index gain 6.1% for the month.
Nasdaq’s unstoppable rally follows a not-so-memorable 2022 when tech stocks took a beating as soaring interest rates weighed on growth stocks. However, major tech companies have since soared and pulled Nasdaq out of troubled waters.
The recent rally is being driven by the ongoing enthusiasm around artificial intelligence (AI) that has been helping major tech stocks and the broader market.
Rally Driven by Enthusiasm Around AI
Although the opinions of AI experts, especially on the prospects of generative AI, remain divided, the enthusiasm surrounding the space has been tremendous over the past year. According to many, AI is still taking baby steps, and the world is yet to see its potential.
Once that happens, it will create significant business opportunities for technology companies to manufacture premium products.
NVIDIA Corporation (NVDA - Free Report) has been leading the AI revolution with its generative AI chipsets. The company reported robust fourth-quarter 2023 earnings and the company has issued an upbeat outlook. NVIDIA’s success has been inspiring other players, too, which is aiding the broader market.
Also, the development of other smart devices is helping the space as they necessitate computing and learning capabilities for tasks such as face detection, image recognition and video analytics.
These functions demand high processing power, speed, memory, low power consumption, and improved graphic processors and solutions, all of which present favorable conditions for the semiconductor industry.
Also, the semiconductor industry is staging a solid comeback due to this after going through a lean patch till the first half of 2022.
Our Choices
Given this scenario, it would be ideal to invest in Nasdaq stocks such as NVIDIA Corporation, Netflix, Inc. (NFLX - Free Report) , Meta Platforms, Inc. (META - Free Report) , Microsoft Corporation (MSFT - Free Report) and Logitech International (LOGI - Free Report) , which have strong potential in 2024. These stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and assure good returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to artificial intelligence-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA has an expected earnings growth rate of 79.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 17.5% over the last 60 days. NVDA presently sports a Zacks Rank #1.
Netflix, Inc. is considered a pioneer in the streaming space. NFLX has been spending aggressively on building its portfolio of original shows. This is helping Netflix sustain its leading position despite the launch of new services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video.
Netflix’s expected earnings growth rate for the current year is 41.6%. The Zacks Consensus Estimate for the current-year earnings has improved 6.5% over the past 60 days. NFLX currently sports a Zacks Rank #1.
Meta Platforms, Inc. is the world’s largest social media platform. META’s portfolio offering evolved from a single Facebook app to multiple apps like photo and video sharing app Instagram and WhatsApp messaging app owing to acquisitions. Along with in-house developed Messenger, these apps now form Meta’s family of products used by almost 3.96 billion people on a monthly basis as of Sep 30, 2023.
Meta Platforms has an expected earnings growth rate of 34.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 13.6% over the last 60 days. META presently sports a Zacks Rank #1.
Microsoft Corporation is one of the largest broad-based technology providers in the world. MSFT dominates the PC software market, with more than 73% of the market share for desktop operating systems. Microsoft Corporation’s Microsoft 365 application suite is one of the most popular productivity software globally. MSFT is also one of the prominent public cloud providers that can deliver a wide variety of infrastructure-as-a-service and platform-as-a-service solutions at scale.
Microsoft Corporation has an expected earnings growth rate of 18.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the last 60 days. MSFT presently carries a Zacks Rank #2.
Logitech International is a global leader in peripherals for personal computers and other digital platforms. LOGI develops and markets innovative products in PC navigation, Internet communications, digital music, home-entertainment control, video security, interactive gaming and wireless devices.
Logitech International has an expected earnings growth rate of 20.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 13.1% over the last 60 days. LOGI presently carries a Zacks Rank #1.