Technology stocks have led the stock market to new all-time highs in 2024. In fact, the Technology Select Sector SPDR ETF (ticker: XLK) has significantly outperformed the S&P 500’s total return in the past 12 months. For more than a decade, brief periods of tech sector underperformance have consistently been long-term buying opportunities, and that trend seems likely to continue for the foreseeable future.
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Inflation and elevated interest rates remain headwinds for tech earnings in the near term, however, making stock selection critical. Here are 10 of the best tech stocks to buy today, according to CFRA analysts:
| Stock | Implied upside over April 5 closing price |
| Microsoft Corp. (MSFT) | 6.9% |
| Apple Inc. (AAPL) | 23.8% |
| Nvidia Corp. (NVDA) | 13.6% |
| Broadcom Inc. (AVGO) | 19.5% |
| Salesforce Inc. (CRM) | 9.3% |
| Advanced Micro Devices Inc. (AMD) | 17.4% |
| Adobe Inc. (ADBE) | 29.9% |
| Accenture PLC (ACN) | 16.2% |
| Intuit Inc. (INTU) | 12.5% |
| International Business Machines Corp. (IBM) | 14.2% |
Microsoft Corp. (MSFT)
Microsoft is the world’s largest software company that is best known for Windows, Office and Azure cloud services. Analyst Angelo Zino says Microsoft’s artificial intelligence technology creates huge opportunities for the company in the next decade, and AI is his biggest reason for investors to own the stock. In addition, he says Microsoft’s cloud versions of Office, Dynamics and Teams are gaining traction, and its Azure infrastructure cloud services business is booming. Zino says Microsoft’s Activision Blizzard acquisition will also unlock new opportunities in its gaming business. CFRA has a “strong buy” rating and $455 price target for MSFT stock, which closed at $425.52 on April 5.
Apple Inc. (AAPL)
Apple produces the iPhone, iPad, Apple Watch, Mac computers and other personal computing devices. In addition, its services segment includes its App Store, Apple Music, iCloud and licensing businesses. Zino says Apple has an impressive ecosystem, improving profitability, high customer retention rates and a growing global addressable market. He says Apple deserves a premium valuation thanks to its stable free cash flow, its aggressive capital return strategy and its management team’s long-term track record of stellar execution. He anticipates further upside in average selling prices for Apple devices. CFRA has a “buy” rating and $210 price target for AAPL stock, which closed at $169.58 on April 5.
Nvidia Corp. (NVDA)
Nvidia designs and sells high-end graphics and video processing chips used for desktop and gaming personal computers, workstations, and other advanced computing servers and AI engines. Not only is Nvidia the best-performing stock on this list in 2024, its 12-month gain of 227.4% makes it the second-best performer in the entire S&P 500 after Super Micro Computer Inc. (SMCI). Zino says Nvidia’s cutting-edge pipeline coupled with unprecedented cloud infrastructure investment suggests the stock price still has significant upside even after its incredible run. He says Nvidia is a must-own AI technology investment. CFRA has a “buy” rating and $1,000 price target for NVDA stock, which closed at $880.08 on April 5.
Broadcom Inc. (AVGO)
Broadcom is a diversified global analog semiconductor supplier. Zino says Broadcom is well positioned to capitalize on the AI infrastructure investment boom thanks to its networking and switcher business, its application-specific integrated circuit (ASIC) products and its potential for cost synergies following its acquisition of VMware. He says extensions of Broadcom’s Apple chip supply deals and additional opportunities tied to the AI investment cycle give Broadcom better financial visibility and demand potential today than at any other time in its history. Zino projects 40% revenue growth in fiscal 2024. CFRA has a “buy” rating and $1,600 price target for AVGO stock, which closed at $1,339.43 on April 5.
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Salesforce Inc. (CRM)
Salesforce is the world’s largest provider of cloud-based customer relationship management (CRM) software. While Salesforce’s impressive revenue growth may finally be starting to slow, Zino says the company’s profitability is improving, its valuation is attractive and it continues to gain CRM market share. He says Salesforce’s product portfolio is by far the most comprehensive in the industry following years of strategic acquisitions. Zino says Salesforce is successfully balancing cost growth and revenue growth, and AI initiatives could help propel the stock to the next level. CFRA has a “strong buy” rating and $330 price target for CRM stock, which closed at $301.91 on April 5.
Advanced Micro Devices Inc. (AMD)
Shares of microprocessor and graphics semiconductor stock Advanced Micro Devices are up a whopping 4,030% over the past decade, but Zino says there’s more upside ahead as the introduction of AMD’s next-generation EPYC processors improves its central processing unit data center server business. In addition, he is optimistic about AMD’s graphics processing unit products and anticipates the company will continue to improve its balance sheet. Zino says the personal computer market will rebound and high-margin product launches will likely boost AMD’s overall margins in 2024. CFRA has a “buy” rating and $200 price target for AMD stock, which closed at $170.42 on April 5.
Adobe Inc. (ADBE)
Adobe produces creative content software and other applications used for marketing and e-commerce. Adobe shares are down 18.7% this year through April 5, but Zino says the weakness is a buying opportunity for long-term investors. He says Adobe shares trade at an attractive valuation relative to its growth prospectus, and the company has significant opportunities to use AI technology to further monetize its products and customers. He says integrating AI Assistant into Acrobat and Reader and ramping the company’s Firefly generative machine learning model could help boost Adobe’s stock. CFRA has a “buy” rating and $630 price target for ADBE stock, which closed at $485.12 on April 5.
Accenture PLC (ACN)
Accenture is a global information technology services firm that specializes in consulting and outsourcing. Analyst Brooks Idlet says long-term investors should overlook Accenture’s expensive valuation and focus on its growth profile and strong business fundamentals. Idlet says Accenture’s diverse client relationships, peer-leading earnings growth and impressive balance sheet will help the stock outperform even in a difficult macroeconomic environment. He says the company’s exposure to secular growth trends, strong relationships with software vendors and ability to attract top-tier talent demonstrate its underlying business momentum. CFRA has a “buy” rating and $387 price target for ACN stock, which closed at $333 on April 5.
Intuit Inc. (INTU)
Intuit produces accounting and management, tax preparation and personal finance software. Analyst Janice Quek says Intuit has executed well in a difficult macroeconomic environment, and she sees several ways the company could maintain double-digit revenue growth in the medium term. Quek says Intuit has already embedded its Intuit Assist generative AI technology into its products, and the new offerings are compelling to users and could help support both customer retention rates and premium product upgrades in the long term. Quek projects 11.8% revenue growth in fiscal 2024. CFRA has a “buy” rating and $715 price target for INTU stock, which closed at $635.74 on April 5.
International Business Machines Corp. (IBM)
IBM is a global technology company that provides enterprise software, infrastructure and services. IBM has a 3.5% dividend yield, the highest on this list and a rarity among tech stocks. Idlet says IBM’s consulting business and its impressive portfolio of tech offerings that address key secular growth trends such as cloud migration and AI technology make the stock an excellent investment. While IBM has a lackluster and inconsistent history of execution, Idlet says he is optimistic the company can reestablish a reputation for reliable fundamentals moving forward. CFRA has a “buy” rating and $216 price target for IBM stock, which closed at $189.14 on April 5.
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10 Best Tech Stocks to Buy for 2024 originally appeared on usnews.com
Update 04/08/24: This story was previously published at an earlier date and has been updated with new information.
