2024 looks set to be a new breakthrough year for tech stocks.
later Nasdaq Composite 43% increase in 2023; Nasdaq-100the Nasdaq Composite Index will rise 9% in 2024, when the first quarter ends.
The artificial intelligence boom is the main reason tech stocks are still soaring, but it's not the only reason behind the sector's rapid growth. Read on to see 3 tech stocks he thinks you can buy right now.
Image source: Getty Images.
1.Microsoft
You don't get points for originality in the stock market, but microsoft (NASDAQ: MSFT) It may seem like one of the most obvious choices at the moment, but it's not a bad buy.
The tech giant has outpaced its rivals and emerged as the software leader in AI, at least for now. By partnering with his OpenAI, Microsoft is able to add generative AI technology to a wide range of products, including Azure cloud infrastructure services, GitHub code repositories, and the Office software suite, and that effort is already paying off. Management said that his 6-point growth in Azure in the most recent quarter was due to AI services, with the overall category increasing 30%, which is much faster than his 30% increase. Amazon web service.
Microsoft also just hired Mustafa Suleyman, co-founder of DeepMind, from Alphabet, which could further extend its lead in AI. Mr. Suleiman is also the co-founder of the recently folded Inflection AI. Microsoft hired most of its employees.
Moreover, no other tech giant has the diversification to take advantage of opportunities in the AI space.
2. ACM research
ACM Research (NASDAQ:ACMR) is a little-known small semiconductor company that manufactures highly specialized wafer cleaning equipment. These machines play an important role in semiconductor manufacturing.
The company primarily sells to customers in China, including Semiconductor Manufacturing International Corporation, which accounted for 16.5% of sales last year.
Like other semiconductor stocks, ACM is starting to see tailwinds from artificial intelligence. The company said demand for its products was strong in the most recent quarter as it gained market share in China's wafer fabrication equipment market.
Sales rose 43% and profits rose significantly, with adjusted net income more than doubling to $28.7 million. As demand for the advanced chips on which artificial intelligence relies increases, so too should demand for ACM's cleaning equipment.
Additionally, the stock is cheap at just 18 times earnings. This low entry point gives us hope for further upside.
3. Trade Desk
finally, trade desk (NASDAQ:TTD) is also a great tech stock to buy right now.
The Trade Desk is the adtech industry's leading independent demand-side platform (DSP). The company provides a self-service, cloud-based platform for agencies and brands to manage their advertising campaigns, and is likely to benefit from a number of trends this year.
First, the company is harnessing the power of AI with the launch of its new Kokai AI platform, which leverages deep learning algorithms throughout the digital media buying process to leverage 13 million ad impressions per second.
Additionally, The Trade Desk is benefiting from a recovery in the digital advertising market after recession concerns subside in 2022 and 2023, and long-term tailwinds should accelerate revenue growth. Finally, The Trade Desk appears well-positioned to take advantage of Google Chrome's phaseout of third-party cookies, as its alternative tracking solution, Unified ID 2.0 (UID2), gains market share. should be helpful. UID2 already has contracts with some of the world's largest advertisers. disney and procter and gamble.
Trade Desk is also growing rapidly and is highly profitable. The stock has a long track record of outperformance, and that trend should continue for years to come.
Where to invest $1,000 right now
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool's board of directors. Alphabet executive Suzanne Frye is a member of The Motley Fool's board of directors. Jeremy Bowman has held positions at ACM Research, Amazon, The Trade Desk, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, The Trade Desk, and Walt Disney. The Motley Fool recommends the following options: His January 2026 $395 long call on Microsoft and his January 2026 $405 short call on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
