Investing profitability relies on many different factors, including understanding your personal risk tolerance and reducing fees to maximize long-term returns.
However, many investors prefer to think short term, pursuing a timely investment in top-performing stocks. This can result in tremendous gains — if you pick the right trend to invest in, of course.
Each December, pundits and industry publications publish lists of the biggest and boldest predictions for what the tech sector holds in the new year. The following five trends have popped up on a number of these lists, and they represent some of the most dynamic opportunities on Wall Street in the new year.
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Just remember that many of the companies listed are high-risk as well as potentially high-reward. And keep in mind that just because you’re right about the broader technology applications doesn’t mean that your specific investment will succeed, unless that company squeezes out the competition.
If you’re looking to invest in high-tech opportunities right now, here are five of the biggest strategic technology trends in 2024:
— AI.
— Cybersecurity.
— Clean technology.
— Connected workforce.
— Blockchain.
AI
Artificial intelligence chatbot ChatGPT reached more than 100 million active users just two months after its November 2022 launch — a tremendous feat that captivated businesses and consumers alike. Tech firms were agog over the news, but so were policymakers and academics. By October, the White House had formally weighed in with an executive order regarding how to ensure “safe, secure and trustworthy artificial intelligence.” Goldman Sachs recently produced a report estimating that generative AI could raise global gross domestic product, or GDP, by 7% over the next 10 years all by itself, and you can be sure that all of Silicon Valley will be charging hard at AI in 2024 to ensure they get their piece of this pie.
Tickers to watch: Microsoft Corp. (ticker: MSFT), C3.ai Inc (AI), iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)
Cybersecurity
Global cybersecurity concerns have grown since the beginning of the war in Ukraine in early 2022, given Russia’s reputation as a common point of origin for hacking activity. More recently, the October ransomware attack on Caesars Entertainment Inc. (CZR) was a huge warning sign as casino technology went dark and the corporation ultimately opted to pay an eight-figure ransom to get their systems back online. Consulting firm Gartner has forecast that security and risk management spending in 2024 will jump more than 14% to become a $215 billion industry.
Tickers to watch: CrowdStrike Holdings Inc. (CRWD), Fortinet Inc. (FTNT), First Trust Nasdaq Cybersecurity ETF (CIBR)
Clean Technology
Clean technology includes ways to improve environmental sustainability through the better use of next-generation hardware and software. Think of the companies that are developing more efficient solar cells, rather than the utilities that still burn fossil fuels, even if they like to talk a lot about their more modest green energy generation. After all, if wind and solar are the growing piece of the pie, then that’s the slice you want to focus your investments on. Consider that the U.S. Energy Information Administration expects renewable deployment to grow by 17% in 2024 and account for almost a quarter of electricity generation. Focusing on clean tech will allow you to capitalize on this growth.
Tickers to watch: Enphase Energy Inc. (ENPH), Vestas Wind Systems A/S (OTC: VWDRY), iShares Global Clean Energy ETF (ICLN)
[READ: 6 Best Green Hydrogen Stocks and ETFs to Buy Now]
Connected Workforce
While a number of employers are interested in reinforcing in-person work, many of the productivity gains and collaboration tools we all adopted in the past few years are here to stay. And while there’s a focus on returning to the office, there’s also a demand from many workers to defend a “hybrid” arrangement where they can occasionally work from home. Despite talk of an enterprise spending downturn in 2023, a resilient economy has resulted in better-than-expected enterprise technology spending. In 2024, Gartner is expecting an 8% overall expansion in global information technology spending.
Tickers to watch: Upwork Inc. (UPWK), Salesforce Inc. (CRM), Invesco Nasdaq Internet ETF (PNQI)
Blockchain
With Bitcoin up 150% or so in 2023, it looks like the crypto craze may be back. But beyond the idea of just trading different digital assets, investors should consider buying into the underlying technology of cryptocurrencies, which is blockchain. Many fintech firms as well as traditional institutions are working hard to maximize the potential of blockchain and related technologies, such as smart contracts and modernized payment rails, that represent what some call web 3.0. Reducing the friction of financial transactions is of huge benefit in a digital age, and decentralized databases have potential for the enhanced privacy and security that many are looking for. Industry experts at International Data Corp. predict blockchain spending will keep going strong in the new year, reaching $19 billion by the end of 2024.
Tickers to watch: Coinbase Global Inc. (COIN), PayPal Holdings Inc. (PYPL), Amplify Transformational Data Sharing ETF (BLOK)
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5 Strategic Technology Trends to Watch in 2024 originally appeared on usnews.com
