Tech stocks performed strongly in the first quarter of 2024, defying higher-than-expected inflation as enthusiasm for AI and strong fourth-quarter profits buoyed the sector.
Top-performing tech stocks for April 2024 that intersect with artificial intelligence (AI) include semiconductor companies that make software to analyze videos for security threats, platforms for autonomous aircraft, and sensors for AI-powered robots Includes several brands. . The following five tech stocks posted impressive gains in one month, outperforming the Nasdaq Composite Index over the same period.
All data is current as of market close on April 4, 2024.
Important points
- Tech companies that develop or utilize AI accounted for some of April's top performing tech stocks.
- High-tech growth stocks can provide exposure to key innovations in their sector, but they can also be more volatile.
- First quarter earnings season begins in April, with technology companies reporting their first quarter results.
- Top tech stocks in April 2024 based on one-month returns include Airship AI, Ouster, Ehang Holdings Limited, Cardlytics, Semtech, etc.
- Industry/Industry: Technology Services / Packaged Software
- Price: $9.79
- Market capitalization: $220.29 million
- 1 month total return: 192.12%
Airship is a software company that helps law enforcement and defense organizations analyze videos for potential threats. Its flagship products include Airship Acropolis OS, Airship Command, and Airship Outpost (also known as Airship Suite). In early March, the company received a big boost when it won a “major” contract with an agency within the U.S. Department of Justice.
- Field/Industry: Electronic technology / Semiconductor
- Price: $9.99
- Market capitalization: $406.31 million
- 1 month total return: 88.49%
Ouster designs and manufactures high-resolution LiDAR sensors for a variety of industries including automotive, robotics, security, industrial, and crowd analysis. Simply put, Ouster's LIDAR technology uses laser-based radar to allow certain machines to “see” their surroundings, with potential applications in self-driving cars and AI-powered robots. is. The company reported record sales of $83 million in 2023 (up 103% year-over-year) and posted a fourth-quarter EBITDA loss of $14 million, an improvement from $18 million in the previous quarter.
- Industry/Industry: Technology Services / Packaged Software
- Price: $18.60
- Market capitalization: $1.14 billion
- 1 month total return: 74.98%
Ehang is an autonomous aerial vehicle (AAV) platform with operations in China, East Asia, West Asia, Europe, and other countries. The company specializes in manufacturing aircraft with AI-based command and control systems that enable autonomous takeoff, cruise, and landing. The company reported total revenue for 2023 equaling approximately $8 million, an increase of 260.9% year over year.
- Sector/Industry: Technology Services / Internet Software
- Price: $13.07
- Market capitalization: $576.51 million
- 1 month total return: 73.34%
Cardlytics is a digital advertising platform. The company partners with more than 1,500 financial institutions, including major companies like Chase, Bank of America, Wells Fargo, and PNC, to analyze customers' consumer behavior and build more personalized rewards programs. Cardlytics reported total revenue of $309.2 million in 2023, compared to $298.5 million the year before. It also reported adjusted EBITDA of $3.8 million in 2023, compared to $45.2 million reported in 2022.
- Field/Industry: Electronic technology / Semiconductor
- Price: $33.06
- Market capitalization: $2.13 billion
- 1 month total return: 53.77%
Semtech manufactures analog and mixed-signal semiconductors primarily for the Internet of Things (IoT). On March 26, the company was named a “bullish fresh pick” by analysts at the investment firm Robert W. Baird, which led to a rally in the market, with the stock up about 21% by early April, the company said. reported. Net sales for the fourth quarter of 2023 were $192.9 million, an improvement from $152.5 million in the same period last year.
How to choose cheap tech stocks
We selected the top technology stocks based on their returns over the past 30 days. We included only companies listed on the Nasdaq or the New York Stock Exchange (NYSE) that traded less than $50 per share.
Companies developing AI technology are largely the bullfighters behind the recent stock market bull run. Several semiconductor companies, such as NVIDIA (NVDA), posted record revenue increases in 2023 as demand for generative AI chips continues to grow. According to some forecasts, sales of AI chips are expected to account for about two-thirds of overall semiconductor sales by 2024. Meanwhile, technology companies that leverage AI software in their platforms, such as Symbotic (SYM) and ServiceNow (NOW), also posted strong revenue growth in 2023.
While AI technology is generating a lot of excitement, investors should continue to take a deep dive into a company's fundamentals to see if its financials are sustainable over the long term. This is especially important as the 2024 first-quarter earnings season begins in April, when investors can assess the financial strength of many tech companies. It's also wise to keep an eye on the Federal Reserve's interest rate decisions, as expectations around rate cuts (or lack thereof) could impact tech companies' performance for the remainder of 2024.
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As of the date of writing this article, the author does not own any of the stocks mentioned above.
