The artificial intelligence-fueled tech stock rally hit some speed bumps in recent weeks. For example, the Technology Select Sector SPDR ETF (ticker: XLK) has now underperformed the S&P 500’s total return so far in 2024. 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.
[Sign up for stock news with our Invested newsletter.]
However, elevated interest rates and slowing economic growth remain headwinds for tech earnings in the near-term, making stock selection critical. Here are 10 of the best tech stocks to buy today, according to CFRA analysts:
| Stock | Implied upside* |
| Apple Inc. (AAPL) | 19.5% |
| Microsoft Corp. (MSFT) | 20.4% |
| Nvidia Corp. (NVDA) | 27.5% |
| Broadcom Inc. (AVGO) | 24.5% |
| Salesforce Inc. (CRM) | 19.4% |
| Adobe Inc. (ADBE) | 18.7% |
| Advanced Micro Devices Inc. (AMD) | 31.6% |
| Accenture PLC (ACN) | 19.8% |
| Qualcomm Inc. (QCOM) | 43.7% |
| International Business Machines Corp. (IBM) | 13.5% |
*Based on CFRA 12-month target price and Aug. 12 closing share price.
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. Analyst Angelo Zino says Apple’s opportunities to integrate AI technology into its devices coupled with its massive global ecosystem will create value for investors. In addition, Zino says Apple’s margin profile is improving and its addressable market is expanding. He says Apple’s stable free cash flow generation, world-class management team and aggressive capital return strategy warrant a premium valuation. CFRA has a “buy” rating and $260 price target for AAPL stock, which closed at $217.53 on Aug. 12.
Microsoft Corp. (MSFT)
Microsoft is the world’s largest software company and is best known for Windows, Office and Azure cloud services. Zino says he is bullish on Microsoft’s AI opportunities following a period of heavy investment throughout its product stack. Those investments include Azure AI development services, AI infrastructure and AI applications such as Microsoft Copilot. Microsoft has already deployed a number of AI products, and Zino says it will continue to roll out additional AI technologies in coming quarters. He says AI investments will not hurt overall margins. CFRA has a “strong buy” rating and $490 price target for MSFT stock, which closed at $406.81 on Aug. 12.
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 total return of 120.2% through Aug. 12 makes it the best performer in the entire S&P 500. Zino says Nvidia’s penetration into auto, PC and robotics edge devices will help expand its total addressable market. He says Nvidia is also benefiting from content gains and has numerous opportunities in software. CFRA has a “buy” rating and $139 price target for NVDA stock, which closed at $109.02 on Aug. 12.
Broadcom Inc. (AVGO)
Broadcom is a diversified global analog semiconductor supplier. Zino says Broadcom’s networking, switcher and application-specific integrated circuit businesses will generate a combined $11 billion in revenue in fiscal 2024 and will help the company be a major beneficiary from the AI infrastructure investment boom. Zino says Broadcom’s acquisition of VMware will produce significant cost synergies, and VMware integration is running ahead of schedule so far. He says the addition of VMware’s software business will boost Broadcom’s margins and free cash flow and provide high-visibility recurring revenue. CFRA has a “buy” rating and $185 price target for AVGO stock, which closed at $148.62 on Aug. 12.
Salesforce Inc. (CRM)
Salesforce is the world’s largest provider of cloud-based customer relationship management software. Salesforce is no longer the high-growth stock it once was, but Zino says its market share gains, improving profitability and attractive valuation make it a high-quality tech stock for long-term investors. Salesforce’s revenue growth outlook has dropped into the single-digit percentage range, but Zino says the company is better positioned than competitors to monetize its AI initiatives over time thanks to its access to valuable troves of front office customer data. CFRA has a “strong buy” rating and $300 price target for CRM stock, which closed at $251.31 on Aug. 12.
[READ: 7 Best Fintech ETFs to Buy Now]
Adobe Inc. (ADBE)
Adobe produces creative content software and other applications used for marketing and e-commerce. Adobe shares are down about 11% this year, but Zino says the stock’s attractive valuation and AI growth opportunities make the recent share price weakness an excellent buying opportunity. He says the monetization of AI Assistant in Reader and Acrobat, as well as the rollout of Express and Firefly, could help Adobe’s annual recurring revenue growth accelerate in coming quarters. Zino says Adobe will continue to benefit from its large user base and deep product portfolio. CFRA has a “buy” rating and $630 price target for ADBE stock, which closed at $530.93 on Aug. 12.
Advanced Micro Devices Inc. (AMD)
Shares of microprocessor and graphics semiconductor stock Advanced Micro Devices are up a whopping 3,252% over the past decade, but Zino says the stock still has room to run thanks to its impressive growth outlook. The company’s central processing unit data center server sales will help drive that growth as AMD starts the rollout of next-generation EPYC processors. Zino says new product launches will improve AMD’s sales mix and margins through 2025. The company will also likely continue to improve its balance sheet. CFRA has a “buy” rating and $180 price target for AMD stock, which closed at $136.77 on Aug. 12.
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 be buying the dips in Accenture’s stock given the company’s market leadership, strong business fundamentals and attractive growth profile. Idlet says Accenture is a high-quality company, and the stock is a defensive play that has historically held up relatively well during periods of macroeconomic uncertainty. Accenture has a strong balance sheet, a diverse base of clients and a track record of industry-leading earnings growth. CFRA has a “strong buy” rating and $376 price target for ACN stock, which closed at $313.96 on Aug. 12.
Qualcomm Inc. (QCOM)
Qualcomm is a semiconductor company that focuses on developing products based on its advanced wireless broadband technology. Zino says Qualcomm has several opportunities to significantly expand its total addressable market in coming years, including smartphone and PC content gains, accelerating growth of AI PCs, investments in autonomous vehicle technology and expansion of smart devices. He says Qualcomm will be an on-device AI technology winner, regardless of which device classes generate the most growth. Global Android 5G upgrades could also provide demand upside. CFRA has a “buy” rating and $234 price target for QCOM stock, which closed at $162.89 on Aug. 12.
International Business Machines Corp. (IBM)
IBM is a global technology company that provides enterprise software, infrastructure and services. Idlet says IBM has an exciting combination of value and growth opportunities. At a forward earnings multiple of just 18.8, IBM is exposed to AI and other high-growth tech themes. Idlet says IBM’s Granite GenAI models and watsonx platform serve use cases like model governance, model training and assisted software development. He says software sales growth has slowed, but he is confident exciting product offerings and solid execution can help it reaccelerate moving forward. CFRA has a “buy” rating and $215 price target for IBM stock, which closed at $189.48 on Aug. 12.
More from U.S. News
7 Dividend Stocks to Buy and Hold Forever
Artificial Intelligence Stocks: The 10 Best AI Companies
9 of the Best REITs to Buy for 2024
10 Best Tech Stocks to Buy for 2024 originally appeared on usnews.com
Update 08/13/24: This story was previously published at an earlier date and has been updated with new information.
