3 Top Tech Stocks Poised for Continued Success in 2024

Stocks to buy

The tech-heavy Nasdaq index was one of the best-performing exchanges in 2023. Just six weeks into 2024, it may be headed for a repeat performance. The index is up approximately 7% and the story is the same for the top tech stocks. That means a focus on artificial intelligence (AI).  

In 2023, companies made a point of telling investors about their AI capabilities. In 2024, investors are being more discerning about AI. Specifically, they want to know how companies are going to use AI to increase profits.  

That narrows the list a little bit. But as the early returns show, there are still several companies to choose from. Here are three of the top tech stocks that have posted strong returns in the last 12 months. However, each has a believable AI story that is likely to propel their stocks higher in 2024.  

Palantir Technologies (PLTR)

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Palantir (NYSE:PLTR) posted solid earnings in early February. The results included a 20% year-over-year (YOY) revenue increase and the fourth consecutive profitable quarter. And that growth isn’t expected to slow down anytime soon.  

PLTR stock is up 40% in 2024 and 160% in the last 12 months. So, it’s not like it needed much help from bullish earnings. And there are many analysts saying the time may come for a pullback.

From a technical standpoint, I agree. I tend to take a long-term outlook based on fundamentals. However, after each of its last two earnings reports, PLTR stock has had a pullback of around 15-20%. Will lightning strike a third time? Possibly, but it shouldn’t be something that concerns long-term investors. 

That’s because Palantir continues to silence its critics. First, it didn’t have any commercial clients. Now it has over 20 major partners including companies AWS and Google Cloud. Palantir increased its commercial revenue by 70% year-over-year and is guiding for 40% growth in its commercial sector this year.   

And the reason for that is what the company calls unprecedented demand for its artificial intelligence platform. Maintaining that demand will be the key to justifying the company’s eye-popping valuation which appears to be the next objection for the company to overcome.  

Advanced Micro Devices (AMD) 

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You could easily put Nvidia (NASDAQ:NVDA) on a list of top tech stocks, but Advanced Micro Devices (NASDAQ:AMD) may be a (slightly) better option for 2024. The reason comes down to supply and demand. Nvidia simply can’t meet the insatiable demand for its AI chips.  

Meanwhile, AMD recently released its own MI100 AI chips. At launch, the company projected $2 billion in sales for the year. However, on the earnings call, CEO Lisa Siu increased the forecast to $3.5 billion, and analysts believe that may be too conservative.  

Although AMD stock is nearing the top of its current consensus price target. But the key word there is current. Analysts have been increasing their price targets since the earnings report and if the company keeps capturing market share fueled by increasing demand, it’s not hard to see the stock flirting with a $200 price target by the end of the year. As it is, AMD stock is finding solid support around $168 since the earnings report.  

CrowdStrike (CRWD) 

Source: T. Schneider / Shutterstock.com

Cybersecurity makes this list of top tech stocks for the way it showcases both sides of the AI coin. On the one hand, artificial intelligence will create more ways for bad actors to try to breach protected information. On the other hand, companies like CrowdStrike (NASDAQ:CRWD) are using AI as part of its cybersecurity platform as an extra layer of protection. 

The question investors have to ask is how much is that worth? Revenue and earnings are growing strongly YOY. And about $3 billion of that revenue was of the recurring variety that shareholders love. But with a stock price that’s up 180% in the last 12 months and 30% so far in 2024, it’s fair to ask if all that growth is priced in. 

However, the company is getting ready to report earnings on March 5, 2024. And ahead of that report, analysts are starting to raise their price targets for CRWD strike.  

On the date of publication, Chris Markoch had a LONG position in PLTR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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