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After an uncharacteristically sluggish performance in 2022, tech stocks have come roaring back to life in 2023. In fact, the Technology Select Sector SPDR ETF (ticker: XLK) has more than doubled the S&P 500’s year-to-date return.
For more than a decade, brief periods of tech sector underperformance have consistently been long-term buying opportunities, and that trend seems to be playing out once again heading into 2024. However, inflation and 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 Research analysts:
| Stock | Implied upside from Dec. 1 close |
| Apple Inc. (AAPL) | 9.8% |
| Microsoft Corp. (MSFT) | 12.1% |
| Nvidia Corp. (NVDA) | 28.3% |
| Broadcom Inc. (AVGO) | 4.8% |
| Adobe Inc. (ADBE) | 1.2% |
| Salesforce Inc. (CRM) | -1.5% |
| Accenture PLC (ACN) | 0.9% |
| Advanced Micro Devices Inc. (AMD) | 3% |
| Cisco Systems Inc. (CSCO) | 13.5% |
| Intuit Inc. (INTU) | -6% |
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 impressive ecosystem, growing addressable market and high customer retention rates make the stock a compelling investment, even at a nearly $3 trillion market capitalization. Zino says the company’s stable free cash flow generation and aggressive capital return strategy justify Apple’s premium valuation relative to peers. He projects 2.3% revenue growth in fiscal 2024. CFRA has a “buy” rating and $210 price target for AAPL stock, which closed at $191.24 on Dec. 1.
Microsoft is the world’s largest software company and is best known for Windows, Office and Azure cloud services. Zino says Microsoft has major opportunities to leverage artificial intelligence technology and continue to ride the momentum of its cloud services transition, including Azure cloud services and cloud-based versions of Office, Teams and Dynamics. Cloud-based revenue now makes up about two-thirds of Microsoft’s total sales, and Zino says Microsoft’s CoPilot integration and large stake in ChatGPT maker OpenAI will generate significant value for investors in coming years. CFRA has a “strong buy” rating and $420 price target for MSFT stock, which closed at $374.51 on Dec. 1.
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 supercomputers. Not only is Nvidia the best-performing stock on this list in 2023, but its year-to-date gain of 226% makes it the best performer in the entire S&P 500. Zino says generative AI is creating unprecedented demand for Nvidia’s graphics processing units, or GPUs, and is permanently altering cloud infrastructure spending. Zino projects 118% revenue growth in fiscal 2024 and 41% growth in 2025. CFRA has a “strong buy” rating and $600 price target for NVDA stock, which closed at $467.65 on Dec. 1.
Broadcom is a diversified global analog semiconductor supplier. Zino says Broadcom’s networking, switcher and application-specific integrated circuit businesses position the company to be one of the biggest winners from the AI infrastructure investment boom. Roughly a year and a half after the deal was announced, Broadcom officially closed its acquisition of VMware in November, and Zino says the deal will help diversify Broadcom’s revenue. He estimates software will now account for 40% to 45% of Broadcom’s total sales and projects 7.6% revenue growth in fiscal 2024. CFRA has a “buy” rating and $975 price target for AVGO stock, which closed at $930 on Dec. 1.
Adobe produces creative content software and other applications used for marketing and e-commerce. Zino says Adobe also has significant opportunities to leverage AI technology to further monetize its large user base. He says Adobe’s scale provides formidable competitive advantages and cross-selling opportunities. The company’s Firefly generative machine learning model is already generating considerable customer interest across Photoshop, Illustrator and other platforms. Zino says generative AI integration will help drive Adobe’s subscription revenue growth. He projects 11% revenue growth in fiscal 2024 and 13% growth in 2025. CFRA has a “buy” rating and $620 price target for ADBE stock, which closed at $612.47 on Dec. 1.
Salesforce is the world’s largest provider of cloud-based customer relationship management, or CRM, software. While Salesforce’s impressive revenue growth may have finally slowed, Zino says the company has opportunities to improve profitability and gain further market share. He says Salesforce shares trade at an attractive valuation, given the company holds the most comprehensive portfolio of CRM offerings in the market. Zino says Slack is a “nexus” for professional messaging and collaboration and is one of many acquisitions that have boosted Salesforce’s value as a strategic enterprise vendor. CFRA has a “strong buy” rating and $256 price target for CRM stock, which closed at $260 on Dec. 1.
Accenture is a global information technology services firm that specializes in consulting and outsourcing. Analyst Keith Snyder says Accenture’s diverse customer relationships and strong balance sheet make it an excellent defensive investment in an uncertain macroeconomic environment. The company has a track record of peer-leading earning growth, and Snyder says Accenture’s exposure to secular growth trends, its ability to attract talent and its strong relationships with software vendors create value for investors. He projects 3.5% revenue growth in fiscal 2024 and 7.3% growth in 2025. CFRA has a “strong buy” rating and $341 price target for ACN stock, which closed at $338.06 on Dec. 1.
Advanced Micro Devices Inc. (AMD)
Shares of microprocessor and graphics semiconductor stock Advanced Micro Devices are up a whopping 3,350% over the past decade, but Zino says AMD’s EPYC processors, its GPU products and its opportunity for balance sheet improvement make the stock a compelling semiconductor investment. He says new product launches will help improve AMD’s overall product mix and expand margins in 2024. In addition, Zino says AMD is a solid second place behind Nvidia in the booming data center GPU market. He projects 21% revenue growth in 2024. CFRA has a “buy” rating and $125 price target for AMD stock, which closed at $121.39 on Dec. 1.
Cisco Systems Inc. (CSCO)
Cisco Systems provides networking, cloud and cybersecurity hardware and software solutions. Cisco shares have lagged behind the tech sector in 2023, up 4.8% year to date. However, the stock also pays a 3.2% dividend, the highest yield of any stock on this list. Snyder says Cisco faces near-term headwinds, but the Wi-Fi 6 upgrade cycle is one of several longer-term tailwinds that should make Cisco an excellent investment. He says AI network build-outs and 5G core deployments will continue to support Cisco’s demand. CFRA has a “buy” rating and $55 price target for CSCO stock, which closed at $48.47 on Dec. 1.
Intuit produces accounting and management, tax preparation and personal finance software. Analyst Janice Quek says the buildout of the QuickBooks Online ecosystem will help facilitate the transition of Intuit’s small- and medium-sized desktop business customers to cloud-based solutions. Quek says the acquisitions of Credit Karma and Mailchimp provide valuable datasets. She sees additional cross-selling and upselling opportunities and says Intuit has consistently demonstrated its ability to generate above-average earnings growth regardless of the macroeconomic environment. Quek projects 12% revenue growth in fiscal 2024 and 14% growth in 2025. CFRA has a “buy” rating and $540 price target for INTU stock, which closed at $574.32 on Dec. 1.
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