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There are multiple suggestions on the best tech stocks to invest in 2024. From wearable tech and biotech stocks to the more traditional banking and fintech investments, there is something for everyone. However, the biggest winners of the best tech stocks for 2024 are predictably associated with companies driving and benefitting from the adoption of AI.?
In this article, Techopedia reflects on the events and trends of the last twelve months and explores the most recent Big Tech stock predictions in 2024 by analyzing the “Magnificent Seven” and emerging trends in AI and cryptocurrency.
Key Takeaways
The AI Bubble Debate: Unpacking Nvidia’s Unprecedented Stock Surge
Nvidia’s journey over the last year has dominated stock market news since its stock price skyrocketed by 241% during the last twelve months and reached $902,50 as of March 28, 2024.
This surge continued in 2024 when the company defied critics by reaching a new dramatic peak when Nvidia’s stock price leaped by 16% in just a single day, boosting its market value by $273 billion. The record-breaking one-day market value increase saw Nvidia reach a jaw-dropping $2 trillion company valuation.
The buzz around Nvidia shares was bolstered by the announcement of its new Blackwell B200 сhip. However, the big story behind Nvidia’s rise is tied closely to the explosion of interest in AI, with major companies and even entire nations looking to AI to tackle everything from security to climate change.?
Looking beyond the soaring prices, the future of Nvidia’s stocks is shrouded in concerns, including uncertain demand and escalating competition. These are significant risks in a bearish scenario, with some analysts warning new investors that Nvidia’s hype could be a bubble.
The Magnificent Seven Ride
The supergroup has retained four original FAANG members and expanded by including Microsoft (MSFT), Tesla (TSLA), and the chip-making giant Nvidia (NVDA). Meta Platforms (META) also charted an impressive course, witnessing its stock value rise by 143.47% during the last 12 months despite the widely perceived failure of its Metaverse ambitions.
As a result, Wall Street is witnessing a surge in investor enthusiasm driven by FOMO (Fear of Missing Out) and YOLO (You Only Live Once) attitudes, particularly as the AI stock rally surpasses initial 2024 forecasts. This excitement stems from AI’s potential to transform every aspect of the economy, creating vast opportunities for companies involved in data mining, processing, and storage, particularly those dealing with private data.?
However, the rapid ascent of Big Tech stocks, fueled by this buying frenzy, has sparked debates about a possible bubble, reflecting Wall Street’s mixed feelings as it grapples with the monumental impact of AI.
As the Magnificent Seven continues its ascent in 2024, except Tesla, which showed negative 1-year performance as of March 28, 2024, what are the latest tech stock predictions amidst a globally shifting economic landscape?
Best Tech Growth Stocks of 2024
The quest for the best tech stocks in 2024 continues to evolve with an eye toward companies demonstrating remarkable growth and innovation.?
Li Auto (LI) emerges as a noteworthy contender in the electric vehicle (EV) market, particularly in China, where it has shown impressive performance.
Amidst the race to the $1 trillion valuation, Palantir Technologies (PLTR), currently valued at $54 billion, is emerging as the next big tech stock.
Positioned uniquely in the AI-driven upheaval that reshaped the tech giants’ leaderboard, Palantir’s deep dive into AI solutions could catapult it into the elite circle alongside Microsoft, Apple, and Nvidia. The surging demand for AI technology casts Palantir as an underdog and a serious contender poised for an ambitious leap toward becoming the next big tech stock to watch in the trillion-dollar club.
Elsewhere, Advanced Micro Devices (AMD) and CrowdStrike (CRWD) highlight the burgeoning demand for AI and cybersecurity solutions.
AMD, a pivotal player behind Intel in microprocessors and a significant GPU supplier, leverages its role in AI expansion, powered by its Instinct MI300X accelerators, used by giants from Microsoft to Meta. This positions AMD strongly in the tech stock outlook for 2024.
Simultaneously, CrowdStrike’s AI-enabled software offers critical protection in an era where digital threats evolve rapidly, underscoring the necessity for advanced cybersecurity solutions.
When searching for growth stocks, Shopify (SHOP) used to be perceived as overpriced, but this is no longer the case. E-commerce continues to thrive, prompting retailers to rely on AI for personalization and supply chain optimization. Shopify continues to lead the way with various out-of-the-box services.
The Future of Tech Stocks: AI Leaders, Challengers, and Trends
Greg Halter, the Director of Research at Carnegie Investment Counsel, also ponders the future of AI and its influence on the big tech players who appear to be propping the Fortune 500.?
Giving a tech stock forecast for 2024, he said:
“Unquestionably, AI will impact companies such as Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, Tesla, Salesforce, Advanced Micro Devices, and Intel.”
The only question is to what extent will the perceived leaders, such as Nvidia, Microsoft, and Alphabet, widen their lead, or will some other players catch up???
“We cannot forget that AI is not new; it has been around for decades. What is new is that the industry has reached a ‘tipping point’ where adoption is gaining steam, and use cases are now growing exponentially.”
Halter also believes that the leaders will continue to exploit their size and grow.?
On the other hand, we have seen numerous technological developments over the years where the early leaders did not end up being the current leaders (e.g., Smartphones -> Blackberry; Social Media -> Myspace; Internet Service Providers -> AOL).???
A factor that could derail, or at least slow down development, is regulation, which is a significant variable. However, the longer it takes for any potential regulation to come to fruition, the further along the companies and their efforts.
Analysts’ Consensus Big Tech Stock Forecasts for 2024
According to the consensus analyst ratings compiled by MarketBeat, as of March 28, 2024, the “Magnificent Seven” will mostly hold their current positions in the next 12 months, with a moderate uprise potential.?
However, they do not forecast major price surges, except for Apple, with the estimated target price in a year 18% higher than its current stance.
| Stock | Number of Analysts | Consensus Rating | Average Price Target | Price change % |
| Apple (AAPL) stock price prediction | 34 | Moderate Buy | $204.53 | +18.01% |
| Amazon (AMZN) stock price prediction | 44 | Buy | $197.95 | +10.08% |
| Meta Platforms (META) stock price predictions | 44 | Moderate Buy | $496.35 | +0.50% |
| Alphabet (GOOGL) stock price prediction | 32 | Moderate Buy | $155.48 | +3.06% |
| Tesla (TSLA) stock price prediction | 32 | Reduce | $204.63 | +13.79% |
| Nvidia (NVDA) stock price prediction | 41 | Moderate Buy | $908.68 | +0.68% |
| Microsoft (MSFT) stock price prediction | 39 | Moderate Buy | $423.34 | +0.45% |
A 2024 Tech Stock Forecast from Qraft Technologies
How can AI impact stock picks?
Weldon Rice, the Head of AI ETFs at Qraft Technologies, emphasizes that 2023 was a landmark year for AI-driven market strategies. But what does this mean for investments in big tech stocks in 2024?
“AI played a pivotal role in the markets in 2023, with Qraft’s AI choosing many companies leading the way in AI in its portfolios. With the S&P 500 closing at all-time highs at the end of the year, AI stocks look poised to do well this year.”
With that in mind, here is how Qraft sees companies poised to continue to ride the tailwinds of AI adoption.
Top Picks?
“Apple, Google, Microsoft, Amazon, Nvidia, and Meta all have the AI’s highest conviction, not only among AI stocks but among all stocks overall. This is unsurprising as all the companies either have the software capabilities and user base to commercialize AI or offer the chips necessary to run the models. Our AI may see both the market valuing these companies higher and the quality of their cashflows, making them an attractive pick in 2024”, Rice said.???
Low Conviction
However, Qraft sees less conviction in stocks like Salesforce, Intel, Tesla, and Advanced Micro Devices:
“While these companies will undoubtedly play a role in the AI arms race, many have either part or much of their business outside of AI. For example, Advanced Micro Devices has around 51% of its revenue coming from personal computer chips rather than from chips made for AI models. Contrast that with Nvidia, which gets around 80% of its revenue from chips for AI models, making it better positioned to take advantage of growth in AI use. The model focuses on the quality of earnings, making stocks like Tesla less attractive as its car orders can heavily impact earnings,” Rice said.
“Qraft leverages the power of AI to navigate the market actively. Our holdings are updated monthly, adjusting as the market changes. The above assets are the convictions from our flagship AI model that selects stocks for QRFT, the Qraft AI-enhanced Large Cap ETF, currently performing around 1.4% annually over the S&P 500 tracking ETF, SPY,” ?Rice added.?
AI is ‘A Multi-Trillion-Dollar Market Opportunity’
David Kass, a finance professor at the University of Maryland’s Robert H. Smith School of Business, offers his expert tech stock analysis and predictions. Kass provides a compelling outlook for tech stocks in an environment with lower interest rates and rapid advancements in AI.
“The outlook for tech stocks in 2024 is very bright. A combination of lower interest rates expected during the year and continued progress in these companies’ development and application of artificial intelligence (AI) should propel their shares higher.
“AI is a multi-trillion-dollar market opportunity in which the tech stocks mentioned here are expected to be among the key players. My predictions for individual tech stocks in 2024 include the outperformance by Nvidia, Alphabet, Amazon, Meta Platforms, Microsoft, Apple, Salesforce, and Advanced Micro Devices. However, I am somewhat less optimistic concerning Tesla and Intel.”
Defence Giant BAE Systems is 2023’s Most Searched FTSE 100 Stock
BAE Systems (BA.) emerged as the most searched FTSE 100 stock in the UK last year, reflecting heightened investor interest. According to Investing Reviews’ analysis of Google search data, BAE Systems garnered an impressive 961,349 average monthly searches.
Simon Jones, CEO of Investing Reviews, said knowing which stocks generate interest is always helpful, as it may provide insight into which stocks may experience higher trading volumes and price swings.
“BAE Systems has the most searched FTSE 100 stock in 2023 and is the most searched stock in 20 out of 58 of the surveyed UK locales. This stands to reason, as BAE Systems’ stock has experienced a significant increase in price since the Russian invasion of Ukraine, which began in February 2022. This is due to BAE Systems being one of the UK’s primary defense companies, who have also produced a large part of the equipment the UK has given Ukraine in military aid.”
The Rise of Crypto in 2024: Outshining Big Tech Stocks
In 2023, the Magnificent Seven soared by 75%, comprising about 30% of the S&P 500. However, will other tech stocks recover and keep pace with the leaders? In stark contrast, the remaining 493 companies largely stagnated, struggling to emulate their tech counterparts’ extraordinary success and market impact. This divide underscores the growing dominance of big tech in the stock market.
Many believe that crypto winter is nearly over and will offer the most significant returns in 2024.
Nathan Leung, a crypto educator and lead content creator at Cryptonauts, a YouTube platform that covers blockchain and cryptocurrencies, predicts that crypto has the potential to outshine some of the biggest tech stocks.
“Stock market and crypto investors alike are optimistic about the market behavior in 2024. However, this special year for crypto could outpace the stock market. The first-ever Bitcoin ETF was approved in January and is already trading live. This attracts attention and builds trust for new investors.?
“We also have the Bitcoin halving, which historically kicks off the bull market cycle. It will be an exciting year, but always remember to do your research and take profits,” Leung said.
The Bottom Line
The Nasdaq-100 Index soared by 53% in 2023 and continues conquering new highs, showing another 10.5% surge year-to-date, making it one of the best performances in two decades. But there is no escaping the fact that the “Magnificent Seven” form just a fraction of the tech stocks, and other companies showed less optimistic results.?
2024 began with the concept of “AI Everywhere,” spreading like wildfire across the show floors of CES and the live trading of the first-ever Bitcoin ETF. These trends look set to continue as investors begin to prepare for Bitcoin halving in April, which could either send the price of BTC to the moon or come crashing down as investors take their profits.
When making any big tech stock forecast for 2024, it’s difficult to see how anything will beat Nvidia’s story of jumping 16% and increasing its market value by $273 billion in a single day. This was the watershed moment when traders began to take AI seriously, but we are still in the early stages of AI growth.
Before deciding whether to invest in Big Tech stocks or crypto in 2024, traders should perform a thorough fundamental and technical analysis of the stocks or cryptocurrencies they are interested in.? Any tech stock predictions might prove to be wrong, and stock markets are always prone to increased volatility. Note that past performance is not indicative of future results, and never invest more than you can afford to lose.
