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Top Tech Stocks for Long-Term Growth in 2024

BY

Johny Telloni
tech stocks investment

The tech sector is moving through ups and downs in 2024. The Technology Select Sector SPDR Fund (XLK) fell 4% in July. But, the Russell 2000 went up 10%. This shows tech stocks could still be a good choice for long-term growth.

This drop was partly due to tech giants’ not-so-great earnings and a move to sectors more affected by interest rates. Yet, the tech industry’s core strengths are still there. They’re fueled by AI, more digital use, and cloud computing.

In this article, I’ll show you the best tech stocks for long-term growth in 2024. We’ll look at top stocks, those with great value, and those growing the fastest. This way, you can make your portfolio strong in the ever-changing tech world.

Key Takeaways

  • The technology sector has shown volatility in 2024, with the Technology Select Sector SPDR Fund (XLK) declining 4% in July while the Russell 2000 gained 10%.
  • The long-term growth potential of the tech sector remains promising, driven by advancements in AI, ongoing digitization, and cloud computing.
  • This article will guide you through smart tech stocks investment opportunities that are poised for long-term growth in 2024.
  • By identifying the top-performing tech stocks, as well as those offering the best value and fastest growth, you can position your portfolio for sustainable success.
  • The tech sector’s fundamentals remain strong, despite the recent pullback, making it a compelling long-term investment opportunity.

Best-Value Tech Stocks

I always look for tech stocks that are underpriced but could grow a lot over time. Three companies stand out to me: Perion Network Ltd. (PERI), Consensus Cloud Solutions, Inc. (CCSI), and Opera Limited. (OPRA).

Perion Network Ltd. (PERI)

Perion Network connects advertisers with consumers through digital ads. Its stock is cheap, with a price-to-earnings ratio of 11.5. This could mean it’s a good deal. The company is also getting into cloud faxing, which could add more value.

Consensus Cloud Solutions, Inc. (CCSI)

Consensus Cloud Solutions is a big name in cloud faxing. This area is often missed but has steady growth. Its stock has a price-to-earnings ratio of 12.7, making it a good value investing choice. The company is doing well in the digital document management market.

Opera Limited. (OPRA)

Opera makes web browsers and helps users find digital content. Its stock is cheap, with a price-to-earnings ratio of 8.3. This makes it an interesting choice. Opera is working on making more money from ads and content discovery.

These tech stocks may have short-term issues, but they look like good long-term bets. They’re seen as undervalued stocks with growth potential.

Company Ticker Price-to-Earnings Ratio Undervaluation Compared to Fair Value
Perion Network Ltd. PERI 11.5 N/A
Consensus Cloud Solutions, Inc. CCSI 12.7 N/A
Opera Limited. OPRA 8.3 N/A

Fastest-Growing Tech Stocks

I always look for tech companies that are growing fast. Three companies caught my eye for their quick growth: Hut 8 Corp., EHang Holdings Limited, and Credo Technology Group Holding Ltd.

Hut 8 Corp. (HUT)

Hut 8 is a top bitcoin mining and energy company. It saw a huge 266% jump in revenue in the first quarter of 2024. With more people wanting cryptocurrency, Hut 8’s efficient mining has boosted its revenue growth. This makes it a great pick for growth investing.

EHang Holdings Limited (EH)

EHang makes electric aerial vehicles. It grew its revenue by 165% last year. With more people wanting air mobility, EHang’s advanced autonomous aerial vehicle tech is set to win big. It’s a top choice for those into transportation technology and earnings per share growth.

Credo Technology Group Holding Ltd (CRDO)

Credo Technology Group offers high-speed connectivity solutions. It saw a 89% revenue jump in the fourth quarter of 2024. As we all need faster, reliable high-speed connectivity, Credo’s products are a hit. This makes it a great pick for growth investing in technology infrastructure.

These three tech companies show the fast growth that attracts investors. By looking at revenue growth and earnings per share growth, investors can spot promising tech stocks. These stocks could lead to big gains over time.

Tech Stocks with the Most Momentum

Investing in tech stocks means looking at momentum. This means finding stocks that have done better than others or the market. Tech companies that are changing the game, launching new products, or growing fast are great for momentum investors.

AudioEye, Inc. (AEYE) is a company that makes digital things easier to use for everyone. It has seen a 12-month return over 200%. MicroStrategy Incorporated (MSTR) is all about bitcoin and has also seen its stock go up by more than 200%. EverQuote, Inc. (EVER) is an online place for insurance and has also seen big gains.

These tech stocks show what’s happening in the industry. As we use more technology, companies that offer new things and make things easier for everyone can make a lot of money. This means they could be good for investors.

Momentum investing in tech stocks

Watching tech stocks with a lot of momentum can help investors find growth. But remember, just because a company did well before doesn’t mean it will keep doing so. Always do your homework before investing in tech, as it can be unpredictable.

Advantages of Tech Stocks Investment

I always look for sectors that grow fast and bring new ideas. The tech sector is great for making money over time. It’s full of benefits for those who invest in tech stocks.

Growth Potential

The tech sector grows quickly, especially with small companies and new tech. Big tech firms may not grow much because they’re already big. But, small-cap tech stocks can jump up a lot with new tech or becoming very popular. The tech sector growth is huge, with a market value over $15 trillion in 2024. It’s now the biggest sector out there.

Advanced Innovation

The tech sector leads in AI integration, cloud computing, and other new tech. These innovations are changing many industries. Companies that use these new tech well can make a lot of money.

By investing in tech, you get to be part of these big changes. Choosing the right tech stocks can help your portfolio grow for a long time.

Disadvantages of tech stocks investment

The tech sector can grow a lot but is also very volatile. Fast changes in technology, lots of competition, and changing rules can make tech stock prices go up and down a lot. Investors should watch out for the tech sector volatility, high valuations, and rapidly shifting trends in this fast-moving industry.

Tech stocks often have high prices because people expect them to grow a lot. If these growth expectations don’t happen, the stocks can drop a lot in value. It’s hard for investors to know the true value of many tech companies because they don’t have a long history. This means investors have to guess a lot when trying to figure out the stock’s worth.

Also, the tech sector changes very fast, making it hard for investors to keep up. Companies leading in one area might not do well in the next, causing their stock prices to drop fast. Investors who can’t move quickly or understand the tech companies well might hold stocks that are overpriced and have no real value.

Even with the chance for big gains, investing in tech stocks has big risks. Doing your homework, spreading out your investments, and thinking long-term are key when dealing with the tech sector volatility, high valuations, and rapidly shifting trends of this fast-paced industry.

Investing in Tech Stocks

You can invest in tech stocks in two ways: by picking individual stocks or tech funds. Each method has its own benefits and things to think about.

Investing in Individual Tech Stocks

Investing in tech stocks means you need to know a lot about the companies. You should understand their products, services, money matters, and who they compete with. This way, you could make money from the growth and new ideas of certain tech companies. But, it takes a lot of time and effort to research and analyze.

Experts say to keep tech stocks to about 10% of your total investments to stay safe.

Investing in Tech Funds

You can also invest in tech through funds like ETFs or mutual funds. These funds let you invest in many tech companies at once. This can help spread out your risk and might make your investments less shaky. It’s a good choice if you don’t like doing a lot of research on stocks.

When deciding between tech stocks or funds, think about what you want to achieve, how much risk you can take, and how diverse your investments are. By looking at the good and bad of each option, you can make smart choices. This way, you can take advantage of the tech sector’s growth and innovation.

tech stocks

Best-Performing Tech Stocks in 2024

The tech sector is full of innovation and growth as we look to 2024. Some top tech stocks in the Nasdaq 100 index are leading the way.

Super Micro Computer Inc. (SMCI) is a standout with a 146.8% gain this year. NVIDIA Corp. (NVDA) has also seen a big jump, up 136.3%. Arista Networks (ANET) is another top performer, with a 47.1% increase.

Other top tech stocks to watch include NetApp (NTAP), Broadcom (AVGO), KLA (KLAC), and Fair Isaac (FICO). These companies are showing they can adapt and succeed in the fast-changing tech world.

Past success doesn’t mean future wins, but watching Nasdaq 100 tech stocks can give us clues. As 2024 approaches, tech stocks still offer great growth chances for smart investors.

The Magnificent 7 Stocks

The “Magnificent 7” tech stocks include Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Tesla (TSLA), NVIDIA (NVDA), and Meta Platforms (META). In 2024, NVIDIA led with a 136.3% gain, while Tesla fell 6.6%. The other stocks had returns between 11.3% for Microsoft and 34.4% for Meta Platforms.

These tech giants are key for investors wanting to tap into the long-term tech investments and FAANG stocks growth. They total $16 trillion in market value as of June 26, 2024. They cover four sectors: technology services, electronic technology, retail trade, and consumer durables.

Stock 6 Months 1 Year 5 Years
Alphabet Inc. (GOOG) 31.77% 57.31% 241.22%
Amazon Inc. (AMZN) 26.46% 50.52% 104.61%
Apple Inc. (AAPL) 9.98% 14.72% 331.31%
Meta Platforms Inc. (META) 42.93% 81.95% 170.72%
Microsoft Corp. (MSFT) 20.26% 36.25% 236.55%
NVIDIA Corp. (NVDA) 153.75% 209.81% 3,130%
Tesla Inc. (TSLA) -23.02% -19.27% 1,240%

The Magnificent 7 stocks face risks like currency changes, cyber threats, economic downturns, and rules changes. Yet, they remain key in the tech giants and FAANG stocks world. Investors see them as key for long-term tech investments growth.

Conclusion

Looking back at 2024, the tech sector’s growth is clear. Advances in AI, more digitization, and cloud computing’s rise have changed the game. These changes have made investing in tech promising for smart investors.

The tech sector has seen ups and downs, but I still see value in picking the right tech stocks. By choosing companies with solid basics, big growth chances, and fair prices, I can make the most of the sector’s ups and downs.

Spreading my tech investments across stocks and funds helps me see the sector’s growth safely. The tech industry’s key role in bringing new ideas and changing many fields makes it a great long-term investment. It’s perfect for those ready to take on its challenges and seize its chances.

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