The technology sector is known for its rapid growth and innovation, making the case for the best tech stocks to buy. These rising stars are at the forefront of the technological revolution, leading in areas like artificial intelligence, e-commerce, and 5G connectivity.
With innovation as its cornerstone, the tech industry thrives on adaptability and disruption. This can put investors on a path to high returns with the right strategy and long term vision. Additionally, investing in more established tech companies can provide you with peace of mind due to the companies steady revenue, earnings, and cash flow.
Now, let’s discover the top tech stocks to buy now in 2024!
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is a true industry leader, and one of the most compelling tech stocks to buy in 2024. They’re at the forefront of the technology boom, leading the advancement of generative AI applications and data center scalability.
Broadcom’s semiconductor chips are the backbone of modern technology, powering devices like smartphones, tablets, IoT devices, and even data centers. This critical infrastructure helps enable cloud applications, which in turn help power and accelerate AI workloads. Ultimately, this is the company’s bread and butter, which is set to drive revenue growth and profitability over the next decade. In the 2023 fiscal year, Broadcom saw record revenue as demand for AI and hyperscalers remained robust. The company also delivered a record FCF of $17.63 billion. CEO Hock E. Tan has guided strong growth in 2024, with their Trident 5-X12 chip for AI workloads being a primary driver.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) continues to power the 5G revolution, and is now breaking ground with their generative AI strategy. Investors are betting on a rebound in the handset market and remain bullish on their new Snapdragon platform.
Qualcomm had a much tougher 2023 than many of the other established semiconductor giants. The company was still battling from supply chain constraints from the year prior, as well as a broad slowdown in the handset market. While the recovery is still underway, their new AI CPU (Snapdragon X Elite) will be a major catalyst for 2024. They are not shying away from the competition in generative AI and the explosion of LLMs. Their new AI CPU is said to run AI models 2X faster than its competition, and is ripe for inference and deep learning. Moreover, their latest quarterly earnings are showing signs of a recovery, as their Snapdragon platform drove diversified growth across handsets, automotive, and IoT.
Shopify (SHOP)
Shopify (NYSE:SHOP) is showing all the positive signs to become one of the next Wall Street darlings. They are one of the largest e-commerce companies in the world by market capitalization, providing businesses of all sizes with the tools needed to be successful.
Shopify’s success hinges on the continued growth of e-commerce, a trend that shows no sign of slowing down. The company consistently innovates, introducing new features and integrating AI in order to help its merchants thrive. Additionally, their restructuring efforts in the last year looks like it’s starting to pay off. In 2023, the company sold off their logistics business to Flexport and cut 20% of its workforce. This move has boosted the company’s profitability and strengthened their liquidity. The business is still growing rapidly, and investors should not underestimate their ability to become a FCF machine 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.