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 five years. For more than a decade, brief periods of tech sector underperformance have consistently been long-term buying opportunities, and that trend is likely to continue for the foreseeable future.
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However, market uncertainty and elevated interest rates 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 | Upside Potential* |
| Apple Inc. (AAPL) | 11.2% |
| Nvidia Corp. (NVDA) | 5.6% |
| Microsoft Corp. (MSFT) | 17.0% |
| Broadcom Inc. (AVGO) | 5.1% |
| Salesforce Inc. (CRM) | 4.0% |
| Advanced Micro Devices Inc. (AMD) | 14.9% |
| Accenture PLC (ACN) | 15.0% |
| Adobe Inc. (ADBE) | 24.0% |
| International Business Machines Corp. (IBM) | 7.3% |
| ServiceNow Inc. (NOW) | 6.0% |
*Based on CFRA 12-month target price and Oct. 15 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 ability to integrate AI features into its devices will create value for investors. Zino says Apple’s massive global user base and growing addressable market make the stock a compelling long-term investment. He says Apple’s free cash flow is exceptionally large and stable, allowing for aggressive capital returns that support the stock. CFRA has a “buy” rating and $260 price target for AAPL stock, which closed at $233.85 on Oct. 15.
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 year-to-date gain of 166% makes it the second-best performer in the entire S&P 500. Zino says Nvidia’s content gains from higher system sales, further penetration into edge devices and opportunities for software sales growth suggest the red-hot stock still has room to run. CFRA has a “buy” rating and $139 price target for NVDA stock, which closed at $131.60 on Oct. 15.
Microsoft Corp. (MSFT)
Microsoft is the world’s largest software company and is best known for Windows, Office and Azure cloud services. Zino says Microsoft can leverage AI technology throughout most of its business, including AI development services, AI infrastructure, Microsoft Copilot and other AI applications. He says Microsoft investors should expect many of these AI apps and features to launch in coming quarters. Zino says further cloud adoption will be a long-term tailwind, and the company’s acquisition of Activision Blizzard gives Microsoft valuable exposure to the global gaming market. CFRA has a “strong buy” rating and $490 price target for MSFT stock, which closed at $418.74 on Oct. 15.
Broadcom Inc. (AVGO)
Broadcom is a diversified global analog semiconductor supplier. Zino says the boom in AI infrastructure investment will support demand for Broadcom’s application-specific integrated circuit sales, as well as its networking and switcher businesses. In fact, he projects these businesses will account for a combined $12 billion in sales in fiscal 2024. Zino says Broadcom will benefit from cost synergies following its VMware acquisition. Following the recent Apple chip supply agreement extension, Zino says Broadcom’s long-term financial visibility and demand outlook are better than ever. CFRA has a “buy” rating and $185 price target for AVGO stock, which closed at $175.98 on Oct. 15.
Salesforce Inc. (CRM)
Salesforce is the world’s largest provider of cloud-based customer relationship management software. The company is no longer the high-growth stock it once was, but Zino says Salesforce is still gaining market share from competitors and is attractively valued. He says the company’s profitability is steadily improving, and it can integrate additional AI features throughout its many offerings. For example, Salesforce’s Agentforce platform is a groundbreaking collection of autonomous AI agents designed to augment employees and autonomously manage service, sales, commerce and marketing tasks. CFRA has a “strong buy” rating and $300 price target for CRM stock, which closed at $288.35 on Oct. 15.
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Advanced Micro Devices Inc. (AMD)
Shares of microprocessor and graphics semiconductor stock Advanced Micro Devices are up a whopping 5,901% over the past decade, but Zino says the stock has more upside ahead given his positive outlook for AMD’s data center servers. He says AMD’s server sales will be driven by a ramp up in its next-generation EPYC processors. Meanwhile, Zino says AMD has significantly improved its balance sheet. He projects new product launches will improve AMD’s sales mix and expand margins through at least 2025. CFRA has a “buy” rating and $180 price target for AMD stock, which closed at $156.64 on Oct. 15.
Accenture PLC (ACN)
Accenture is a global information technology services firm that specializes in consulting and outsourcing. Analyst Brooks Idlet says Accenture is a great option for tech stock investors looking for a relatively safe way to capitalize on cutting-edge innovation. Idlet says Accenture’s strong balance sheet, strong client relationships, and diversified managed services and consulting businesses help the stock hold up well during macroeconomic downturns. However, its extensive network of partners and its leadership positions in cloud migration and generative AI give Accenture plenty of growth opportunities. CFRA has a “strong buy” rating and $424 price target for ACN stock, which closed at $368.66 on Oct. 15.
Adobe Inc. (ADBE)
Adobe produces creative content software and other applications used for marketing and e-commerce. Adobe shares are down about 15% this year, but Zino says the stock’s attractive valuation and customer monetization potential make Adobe a compelling investment. He says Adobe will likely continue to roll out new AI offerings in the next year, which will help the company’s annual recurring revenue growth accelerate. For example, AI Assistant has been a popular Document Cloud feature. Zino says AI features will boost subscription pricing, improve user adoption and accelerate subscription sales. CFRA has a “buy” rating and $630 price target for ADBE stock, which closed at $508.03 on Oct. 15.
International Business Machines Corp. (IBM)
IBM is a global technology company that provides enterprise software, infrastructure and services. Idlet says IBM provides investors with a unique value investment thanks to its combination of innovative tech offerings and consulting services that address key secular growth trends. He says IBM is a market leader in generative AI, including its watsonx platform and its Granite GenAI models. Idlet says IBM’s AI technology can improve model training, software development and model governance. He says IBM’s software business performance is a critical part of his investment thesis. CFRA has a “buy” rating and $250 price target for IBM stock, which closed at $232.96 on Oct. 15.
ServiceNow Inc. (NOW)
ServiceNow provides cloud-based applications used to manage and automate workplace processes and workflows. Analyst Janice Quek says ServiceNow will likely generate significant revenue growth in the next several quarters as it launches new generative AI applications and services and leverages its large ecosystem to upsell customers with AI subscription upgrades and additions. Outside of AI, Quek says ServiceNow can seek growth in areas such as database analytics and operational technology workflows. The company also has valuable partnerships with Nvidia, Microsoft and other innovative tech leaders. CFRA has a “strong buy” rating and $984 price target for NOW stock, which closed at $927.96 on Oct. 15.
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10 Best Tech Stocks to Buy for 2024 originally appeared on usnews.com
Update 10/16/24: This story was previously published at an earlier date and has been updated with new information.
