Tech stocks remain a constant source of fascination and speculation for investors. However, investors often overcomplicate things when the industry leaders are right in front of them.
Fueled by innovation and the potential for explosive growth, tech stocks have the power to generate significant returns. But the stock market can be a scary place, especially if you’re a beginner. That is why it becomes paramount to do adequate research and have a long-term time horizon. As 2024 unfolds, several tech giants are poised to continue capturing the attention of Wall Street analysts and retail investors alike.
Now, let’s discover the top 3 tech stocks investors should snap up in April 2024.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) should almost always be mentioned when considering the top tech stocks to buy. As the largest company in the world by market capitalization, Microsoft is a leading company in the AI arena which is set to transform the global economy.
Microsoft remains a premiere choice in the tech stock market for several compelling reasons. Firstly, its diversified offerings span across various sectors, including cloud computing, productivity software, gaming and hardware.
Secondly, Microsoft’s cloud computing division, Azure, continues to see exponential growth due to the rise of generative AI offerings. Their new copilot software introduced in 2023 leverages the power of LLMs to turn customers data into a powerful productivity tool.
Moreover, the company’s cloud revenue exploded in Q2 FY24, driven by Azure cloud deployments. With the continued explosion of generative AI and the need to meet the growing demands of AI workloads, Microsoft remains well-positioned to meet these needs.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, GOOGL), the parent company of Google, remains a powerhouse in the tech industry. The company is at the forefront of the AI boom, with their dominance in search engine technology being a huge competitive advantage.
Alphabet’s core strength lies in its search engine, which holds more than 90% market share. Google continues to redefine its search algorithms, ensuring that it’s the go-to platform for online information retrieval. This dominance translates into a massive advertising revenue stream, a key driver of Alphabet’s financial success.
Moreover, the growing contribution of YouTube’s advertising revenue is a positive sign for long-term, diversified growth. Additionally, the latest release of their Gemini Ultra LLM continues to gain traction as a leading competitor to the Microsoft-backed ChatGPT 4.0.
With the recent announcement of their new data center AI chip tailored for AI workloads, Alphabet remains one of the best tech stocks to snap up in April.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is on a roll in 2024 after delivering record results in the 2023 fiscal year. After capping off the “year of efficiency,” the company is pouring significant CAPEX into generative AI and the Metaverse to supercharge growth.
Meta Platforms remains one of the most dominant social media companies in the world, owning popular apps like Facebook and Instagram. Their robust advertising platform is one of the most sought out in the industry, attracting a variety of businesses from small to enterprise.
Even despite the company’s increased regulatory scrutiny over the years, Meta hopes to leverage generative AI to its content moderation practices. However, what investors are most excited about is the AI-powered LLM, Llama 3. It will compete with other industry leading LLMs, including ChatGPT 4.0, Gemini Ultra and Claude 3.
Additionally, Meta is in a great financial position after delivering record revenue and FCF in FY23. This makes Meta one of the top tech stocks to buy that Wall Street will continue to rave about in 2024 and beyond.
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.