Top Tech Stocks to Buy in 2024

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Disclaimer: This is not financial advice. Please do your own research before investing in any stock.

In the pursuit of top-tier tech stocks, investors often seek a blueprint that offers more than the usual hit-or-miss approach—a fine-tuned algorithm that can pinpoint potential market leaders with an impressive degree of certainty. But what’s the secret ingredient that sets successful investors apart when hunting down these high-tech treasures? It’s all about employing a strategy that’s as comprehensive as it’s meticulously crafted—this is your navigational star in the constellation of tech investments.

Embarking on this journey requires an analytical eye that thrives on digging into both the numbers that anchor a company’s financial foundation and the technical nuances that forecast its market motion. Every potential pick is like a code to be cracked, revealing hints about market dominance, patterns of innovation, and the rhythms of investor sentiment.

So, how do you sift through the digital gold rush to unearth stocks with the resilience to ride out market storms and the agility to sprint ahead when the sun shines on the industry? Follow along as we decode a multidimensional approach that synthesizes metrics and movements, insights and instincts, facts and forecasts, all finely meshed to guide the hand that ticks the box next to the tech stocks of tomorrow.

Let us commence on this voyage of discovery, where seasoned strategies meet cutting-edge opportunities, to craft a portfolio that’s not just robust but also resonates with the tempo of tech’s ever-pulsing beat.

Top Tech Stocks to Buy in 2024

How We Select the Top Tech Stocks to Buy

In the digital realm where technology reigns supreme, selecting the cream of the crop in tech stocks is both an art and a science. Our approach marries rigorous financial analysis with a strategic evaluation of market trends, ensuring that our picks aren’t just flashes in the pan but are companies with the potential for endurance and growth in this dynamic sector.

A Multifaceted Strategy for Tech Stock Selection

In the quest to handpick leading tech stocks, our strategy is multifaceted, utilizing a harmonious blend of financial and technical scrutiny. Such a balanced approach forms the backbone of a deep comprehension of the prospective growth and current status within the market of each contender.

Financial Scrutiny: The Cornerstone of Stock Assessment

Our assessment process initiates with a thorough dive into the fiscal vitality and achievements of firms. We engage with key metrics—the growth trajectory of revenue, efficiency ratios, earnings per share, and return on equity. These indicators serve as financial health barometers, with robust performers often showcasing unwavering growth in revenues along with robust profitability.

Peeling back the layers, we examine the firm’s stronghold in the market and its strategic edges. Be it an unrivalled market presence or a proprietary technological edge, a powerful brand or an innovative service, these elements can tremendously bolster the appeal of a company as an investment opportunity.

Prospects & Dividends: Gazing into the Future

Looking ahead, the prospects of growth weigh heavily in our considerations. We meticulously analyze upcoming product rollouts, geographic or market segment expansions, and the bigger picture of the sector’s expansion curve.

For those with an eye on income generation, we shine a light on dividend histories and yields, viewing them as a mirror to a company’s financial grounding and its pledge to share profits with investors.

Valuations and Financial Resilience: The Art of Pricing and Stability

Valuation might not always be an exact science, but it’s undeniably critical. We dissect ratios like price-to-earnings, price-to-book, and price-to-sales to decipher if a stock stands reasonably valued amongst its compatriots and against its own historical standards.

With an attentive eye on economic swings, a company’s gearing and liquidity get our undivided attention. Assessing these offers a sneak peek into the company’s ability to withstand financial ebbs and flows.

Technical Analysis: Reading Between the Lines

Our financial probe is paired with technical analysis to scrutinize the stock’s past and predicted price behaviors. Key patterns, moving averages, and thresholds of price support and resistance provide a technical vantage point, hinting at possible future price trajectories.

Risk and Ratings: Hedging Bets with Insider Insight

No stock analysis is complete without addressing the probable risks. Regulatory shifts, tech innovations not yet on the radar, and broad economic considerations are all part of the equation. These risk factors must be part of any stress test on a potential investment.

Backing up our own insights, we consider the perspectives of industry analysts and the broader market sentiment. Ratings from these pros and the overall vibe amongst traders can offer supplementary intel, sweetening the pot or signaling caution.

Sustainability and Governance: A Modern Investment Imperative

In an age where investors champion companies mindful of their environmental and social impact, ESG factors can’t be sidelined. The influence of ESG elements on a company’s performance and public image is becoming more discernible and is an incorporated thread in our analysis tapestry.

Synthesizing Diverse Assessments into Winning Picks

By weaving together these various strands of assessment, we aim to single out tech stocks that aren’t just stalwarts today but have the ingredients for success tomorrow. This full-circle approach, though granular and deliberate, is essential to informed investment strategies in the fast-moving tech arena. Investment in stocks is innately risky, and diversifying your portfolio is a practice as old as time but just as relevant. Always consider to consult a professional, and consider your financial goals and attitude towards risk before investing.

1. Broadcom Inc (AVGO)

Overview

Broadcom Inc., originally part of Hewlett-Packard, became independent as Agilent Technologies in 1999. Avago went public in 2009 and subsequently expanded through various acquisitions, including the significant purchase of Broadcom Corporation in 2015, leading to a name change to Broadcom Ltd, and later to Broadcom Inc. The company’s stock is traded on the Nasdaq under the ticker symbol AVGO and is included in the Nasdaq100 index.

The company has a history of corporate transactions and expansions into software, most notably acquiring CA Technologies and Symantec’s enterprise security business. Broadcom has faced antitrust investigations but has remained a major player in semiconductor and infrastructure software products, serving a wide range of markets. As of 2023, Broadcom’s revenue primarily comes from its semiconductor products, with a growing contribution from infrastructure software products and services.

Past Performances

The financial performance of the company has been positive over years. Revenue growth jumped from $23.89 billion in 2020 to $35.82 billion in 2023, reflecting the company’s expanding market reach.

Net income followed the same path, surging from $2.96 billion in 2020 to $14.08 billion in 2023, demonstrating the company’s ability to convert revenue into profits. EPS, or earnings per share, has increased from $6.62 in 2020 to $33.93 in 2023.

This metric measures the profitability of the company per share, and it’s one of the most important financial metrics for investors. In fact, a higher EPS indicates a more profitable company, and, as a consequence, the stock becomes more attractive.

Other two important financial metrics have shown positive results for Broadcom Inc.: gross margin and operating margin. Both indicate the profitability of a company: the gross margin of Broadcom Inc. reached 65.04% in 2023, while operating margin reached 46.63%.

The free cash flow, which measures the ability of a company to generate cash from it’s operation, is also positive: the free cash flow of Broadcom went from $11.60 billion in 2020 to $17.63 billion in 2023, allowing the company to invest and further grow.

For what concerns dividends, Broadcom current dividend yield is 2.19%.

Source: TradingView

Possible Future Scenarios

For what concerns the technical analysis of AVGO, the stock is showing signs of a possible growth in the near future.

The stock witnesses a support level above $410, stopping a positive trend that still seems quite stable. The resistance level over $610 has become a solid resistance, that led the stock to its all-time-high at over $999 in November 2023.

The strong peak in volume, which corresponds to narrow candles, shows an exhausted selling pressure that should lead the stock to a new ATH at over $1000 in the short run.

2. Qualcomm Incorporated (QCOM)

Overview

Qualcomm Inc., at the vanguard of wireless tech innovation, has a storied legacy going back over 35 years since its inception in 1985. The company has carved out a position at the forefront of the global scene, delivering trailblazing semiconductors, software, and services that fuel the wireless domain. It’s a tech titan whose creations breathe life into a vast array of gadgets across the globe, including not only the ubiquitous smartphones and tablets but also the burgeoning domain of wearables and the emerging network of connected vehicles.

With its shares actively traded on the Nasdaq exchange, Qualcomm is a distinguished member of the elite Nasdaq100 index club, operating under the ticker symbol QCOM and firmly established as a heavyweight in the investment community.

Past Performances

QCOM’s financial bedrock is solid, underscored by a muscular performance over recent years. The company’s revenue soared, climbing from $23.89 billion in the groundbreaking year of 2020 to $35.82 billion by 2023, mirroring its burgeoning influence and strides in innovation.

This upward trajectory didn’t just stop at revenue; net income also skyrocketed, inflating from $2.96 billion in 2020 to a striking $14.08 billion in 2023. Such figures underscore QCOM’s adeptness in transforming sales into actual earnings. With earnings per share (EPS) swelling from $6.62 to $33.93 across the same period, QCOM has proven its economic might is no illusion.

Regard for gross margin, a definitive marker of profit-making effectiveness, reveals further cause for applause. By rising to 65.04% in 2023, QCOM has shown finesse in its production processes, yielding more profit from each dollar of sales.

Operating margin, a yardstick for evaluating cost management in relation to income, saw similar elevations, ascending to 46.63% in 2023. This speaks volumes about QCOM’s prowess in expenditure management and profit amplification.

And if one were to look at free cash flow, a litmus test for cash generating capability, the numbers are telling. Vaulting from $11.6 billion in 2020 to an impressive $17.63 billion in 2023, QCOM stands as one of the best tech stocks to buy.

Source: TradingView

Possible Future Scenarios

At the time of writing, QCOM is exhibiting a sideways movement, fluctuating between $102 and $133, indicating significant stock volatility. The increase in volume upon approaching the upper band suggests a potential breakout. However, traders should exercise caution: while it seems highly likely that the stock will transform the $133 resistance level into support, potentially driving the price higher, there is also a risk of a considerable correction in the coming months.

Currently, the buying volume isn’t robust enough to sustain a stable upward trend, but the price should surpass $150 in the short term.

3. Microsoft Corporation (MSFT)

Overview

Microsoft Corporation, a titan in the tech world with an impressive legacy stretching over 40 years, has etched its name as a prominent force in the realms of software crafting, cloud computing services, and personal tech devices. The widespread influence of Microsoft’s offerings is profound, powering a plethora of devices and applications across the planet and embedding itself as a central fixture in contemporary society.

The company is traded on the Nasdaq under the ticker MSFT. Similarly, this asset, from our list of top tech stocks to buy, is included in the Nasdaq100.

Microsoft’s Durable Presence: A Saga of Innovation

The origins of Microsoft trace back to 1975 with the unveiling of the Altair BASIC interpreter, a seminal development signaling the company’s foray into the software arena. From these modest roots, it has burgeoned into a behemoth, trailblazing innovations that have revolutionized how we collaborate, create, and consume information.

The lynchpin of Microsoft’s triumph is an unwavering dedication to pioneering spirit. The company has been a relentless driver of tech advancements, giving us staples like the Microsoft Windows operating system, the Microsoft Office suite, and the Azure cloud platform. These game-changers haven’t simply remodeled the tech sphere; they’ve redefined entire sectors and empowered a global populace.

AI: Microsoft’s Vanguard into a Smart Future

Recently, Microsoft has doubled down on artificial intelligence (AI), recognizing its staggering potential in tackling intricate problems and boosting human efficiency. The firm’s commitment is evident in its substantial investments in AI exploration and innovation, including world-class research labs and strategic acquisitions of AI-centric enterprises.

The fruits of these investments permeate Microsoft’s wide-ranging portfolio, evident in tools like the Cortana digital assistant, Azure AI services, and Power BI analytics. Microsoft’s AI-infused offerings are equipping organizations and individuals to make astute data-informed decisions, streamline operations, and unearth profound insights.

AI: At the Heart of Microsoft’s Visionary Blueprint

For Microsoft, AI isn’t merely an add-on; it’s a pivotal element in its blueprint for future growth and creative disruption. The company foresees a future where AI is intricately woven into the fabric of daily life, elevating efficiency, productivity, and personalization. With its ongoing investments in AI, Microsoft is laying the groundwork for an era where AI transcends being just a tool and becomes a dynamic agent reshaping the contours of our world.

Past Performances

MSFT’s fiscal narrative is one of enduring potency and adaptability. The company’s revenue narrative is a bullish one, with figures leaping from $143.01 billion in year of 2020 to $211.91 billion by 2023—a testament to its growing influence across markets and the breadth of its product suite.

The plot thickens with net income, which mirrors this ascent, vaulting from $44.28 billion in 2020 to a hefty $72.36 billion by 2023, eloquently narrating MSFT’s flair for transforming sales into solid gains. This is further illustrated by the rise of earnings per share, soaring from $5.82 to $9.72 during the same timeframe, highlighting the company’s financial acumen.

The gross margin tells a similar success story, climbing to a healthy 68.92% in 2023. This demonstrates MSFT’s adept management in producing more bang for their buck when it comes to resource utilization and profit maximization.

When speaking of operating margin, an indicator of cost containment versus revenue, the figure also enjoys an uptick, escalating to 41.77% in 2023. It’s a clear indicator of MSFT’s capability in keeping expenses in check while simultaneously beefing up its profit margin.

Meanwhile, free cash flow energies burst forth, bolting from $45.23 billion in 2020 to an impressive $59.48 billion in 2023. This positions MSFT optimally, arming it with the fiscal agility needed to fuel growth ambitions, smart acquisitions, or enrich the pockets of its shareholders through dividends.

Source: TradingView

Possible Future Scenarios

MSFT has been traveling for a while within a range that goes from around $213 to around $332. The lower band represents a strong support level, which has been tested with high volumes, signaling the strength of buyers who avoided an extended downtrend.

The rebound that took place in November 2022 led to a re-testing of the resistance level, which is found at the 38.20% Fibonacci retracement level.

The breakout at high volumes that took place in November 2023 might signal a continuation of the uptrend, further confirmed by the formation of the “cup and handle” pattern we can observe in the image above.

4. Cisco Systems Inc (CSCO)

Overview

Cisco Systems Inc (CSCO) has been a torchbearer in the networking technology sphere for over four decades. Established in 1984, the firm rapidly stamped itself as a behemoth in the network gear, software, and services arena, catering to a global clientele. The backbone of the internet owes much to Cisco’s innovations that enable unimpeded data flow and communication, serving a multitude of industries and applications.

Cisco’s Enduring Innovation: Crafting the Web’s Backbone

The genesis of Cisco dates back to 1984 with the advent of the groundbreaking Ethernet local area network (LAN) switch, a product that revolutionized computer interconnectivity and resource sharing. Since its inception, Cisco has burgeoned into a pivotal force in networking solutions, becoming a key architect of the underlying structure of the internet, thus ushering in the digital revolution.

The narrative of Cisco’s rise is interwoven with its pioneering ethos. The company has continually been at the vanguard, ushering in seminal products like the Catalyst switch series, IE series routers, and the Meraki cloud-managed networks. These innovations haven’t merely altered the networking sector; they’ve been instrumental in digitally transforming businesses and organizations across the globe.

The Cloud Transition: Cisco’s Forward-Leap into Future Networks

As the digital tide shifted into the cloud era, Cisco adapted and excelled. By broadening its inventory to engulf cloud-driven networking answers, it has ensured unfaltering links between on-site and cloud realms. Through its cloud-oriented offerings, Cisco is fortifying businesses in their adoption of cloud services and applications, thus boosting flexibility and spurring on ingenuity.

Cisco: The Pillar of the Interconnected Sphere

In the world where connectivity is king, Cisco prevails as a colossal force. Its networking proficiency is foundational to the sprawling web of devices that span from personal gadgets to sprawling industrial and urban systems. As we tread further into the IoT and digital-economic surge, Cisco’s expertise remains pivotal in guaranteeing the smooth functioning and safety of these interlinked ecosystems.

Past Performances

Cisco’s fiscal health paints a picture of durability and budding prospects for expansion. The company’s revenue has witnessed a commendable uptick, escalating from $49.30 billion in 2020 to an impressive $57 billion by the year 2023. This revenue ascent is principally attributed to Cisco’s foray into cloud-based networking domains and its strategic focus on burgeoning markets.

In terms of net income, Cisco’s ledger reflects significant growth as well, with figures climbing from $11.21 billion in 2020 to $12.61 billion in 2023. This financial surge is largely the result of the company’s meticulous cost management strategies and its prowess in leveraging its esteemed brand to fetch premium pricing on its offerings.

When we delve into gross margin, a pivotal gauge of profitability, we observe consistent figures, with the percentage reaching 62.91% in 2023. This impressive figure is indicative of Cisco’s operational efficiency and its adeptness in securing beneficial pricing agreements with its multitude of suppliers.

The trajectory of the operating margin is similar, registering at 27.25% in 2023. Such a robust margin accentuates Cisco’s deftness in keeping a lid on expenses while enhancing profit margins.

The dynamics of free cash flow also exhibit vivacity, burgeoning from $14.66 billion in 2020 to an abundant $19.04 billion by 2023. Endowed with such potent free cash flow, Cisco is amply equipped to channel funds into growth pursuits, judicious acquisitions, or to reward its shareholders with dividends and the repurchase of shares, cultivating shareholder value.

Source: TradingView

Possible Future Scenarios

As Steve Nison, the wonderful man that brought Japanese candlesticks to the Western world, pointed out, “It is said by Japanese technicians to go in the direction of the window.”

In very simple terms, the window, or gap, is that distance we find between candlesticks on a chart. As Anna Coulling observed, the electronic trading era and after hours trading made gaps less common, but we can still observe this either in markets that are not liquid or in markets that are not so fast. For istance, if we compare stocks and cryptocurrencies, we won’t find gaps in a crypto chart for the simple reason that markets are always open and the opening price of a candle is simply the same as the closing price of the previous candle.

But in the case of Cisco, the stock formed a pattern that is even more unusual, and that could be defined as an Island: the gaps we observe in the chart formed an isolated group of candlesticks.

If we analyze the possible future scenarios for CSCO, we can say that, as it often happens with these types of strong gaps, the last group of candlesticks, which mark the $48 price level, will work as a resistance level in the future.

In this specific case, the pattern we observe seems to have all the charasteristics of an Island Reversal:

• A lengthy trend before the pattern – actually, the CSCO uptrend started in 2011;
• An Island;
• High volume near the gaps.

In other words, it’s very likely that we’re observing a top, and that a new downtrend will start. Only if the “window is closed” and a breakout on high volumes will break the current resistance the uptrend will continue – and it’s very probable that it won’t last long.

5. Intel Corporation (INTC)

Overview

Intel Corporation (INTC) has been at the epicenter of microprocessor innovation for over five decades, laying the groundwork for the digital age. Since its inception in 1968, Intel’s microprocessors—essentially the cerebral cortex of computers and sophisticated devices—have been pivotal in powering the digital tide, with its chips ticking away in billions of gadgets globally.

Intel’s Timeless Contribution: A Chronicle of Tech Breakthroughs

The Intel 4004 microprocessor, unveiled in 1971 as a first of its kind, became synonymous with the rise of personal computing, cementing Intel’s status as a vanguard in the semiconductor arena.

Intel’s timeline is replete with milestones that have redrawn the confines of computing. Seminal creations such as the 8088, the 80386, and the illustrious Pentium processors have been the heartbeat of personal computing epochs, amplifying our digital capacity.

Past Performances

Intel’s fiscal report card exhibits a history of vigor, but most figures have decreased over time and 2022-2023 exhibit low profitability. Revenue went from $77.87 billion in 2020 to $52.86 billion in 2023, net income from $20.9 billion in 2020 to -$1.64 billion in 2023.

The company’s gross margin has demonstrated stability, orbiting around 42%, showcasing Intel’s production efficiency and bargaining prowess with suppliers. Operating margin reached 3.7%, while free cash flow went from $21.13 billion in 2020 to -$10.2 billion in 2023.

Source: TradingView

Possible Future Scenarios

INTC seems to have closed a market cycle, and it seems now that the market is ready to start a new positive trend.

If we have a look at the chart, we can observe that in the past months, market makers tested the market many times to absorb any possible uncertainty and set a clearer path for the next months.

The result is that the price of the stock is slowly moving higher, with continuous tests at the Fibonacci retracement levels – which mark the 38.2% level as a strong support zone, at around $25.

The constant tests are evident if we have a look at prices and volumes: pressure often didn’t correspond to the right results in prices, creating anomalies that lead us to safely assess that market makers are testing market interest.

The resistance level at the 78.6% Fibonacci level turned into support, thanks to a breakout followed by enough buying pressure that might signal the strength of buyers.

6. Microchip Technology Incorporated (MCHP)

Overview

Microchip Technology Incorporated (MCHP), a key international player in the semiconductor landscape, has earned its stripes as a trailblazer in the production and innovation of microcontrollers as well as analog and mixed-signal semiconductors. Its components serve as the lifeblood for a multitude of electronics, spanning industrial tools, vehicles, medical instruments, network gear, and devices for the everyday consumer.

Microchip’s Time-Honored Trace: A Voyage of Technological Breakthroughs

The inception of Microchip’s voyage into the tech domain was marked by the 1987 launch of the PIC microcontroller—a transformative product that simplified microcontroller technology for a broad audience of professionals and enthusiasts alike. Continuing on this path, Microchip has periodically introduced pioneering products, including the PIC18, the AVR microcontroller family, and the dsPIC series of digital signal controllers.

Past Performances

Microchip’s fiscal report card reveals a robust underline, indicative of its prominence in the microcontroller niche. Revenue has displayed a steady climb, rallying from $5.44 billion in 2020 to soar to $8.94 billion in 2023. These strides can be credited to an expanded lineup of products, strategic development in pioneering technologies, and vigorous sales especially in the automotive and industrial automation sectors.

Net income, as well, has seen a note-worthy augmentation, swelling from $349.4 million in 2020 to $2.52 billion in 2023. Efficient production operations and commanding superior pricing for its tech wares have been instrumental in driving these enhancements.

Gross margin, a pivotal profitability signal, has reached 58.78% in 2022, reflecting the company’s productive operation strategies and adept supplier negotiations.

Parallel consistent increase has been observed in the operating margin, which reached 36.88% ni 2022. This showcases Microchip’s skill in expense regulation while upholding profit margins amidst the ebbs and flows of the tech industry.

When it comes to free cash flow—a benchmark of a firm’s cash-generating efficacy from its operations—Microchip shows a fortified front, with the figure blossoming from $1.82 billion in 2020 to $3.16 billion in 2023. With such a sturdy free cash flow résumé, Microchip is well-equipped to funnel investments into forward-facing projects, deliberate buyouts, or to amplify shareholder wealth through dividends and stock repurchases.

Source: TradingView

Possible Future Scenarios

Like many other tech stocks, MCHP experienced an impressive growth during the pandemic, before facing natural – and dramatic – market corrections.

The stock has a long history of stock splits, and – as it often happens – the 2-for-1 stock split that occurred in October 2021 helped the stock in the short run, before dealing with a deep correction.

The continuation of the uptrend, which occurred during 2023, might experience a correction in the near future: at the time of writing, volume is not fully supporting the rising price, which might indicate a lower interest in the uptrend and a consequent decrease of the buying pressure.

7. Apple Inc (AAPL)

Overview

As a titan in the technology realm, Apple Inc (AAPL) stands tall on the global stage as an architect of consumer electronics, sophisticated software, and a constellation of online services. The repertoire of Apple’s offerings encompasses the likes of the iPhone, iPad, Mac, Apple Watch, AirPods, and Apple TV, not to mention the iTunes Store. It’s a brand whose ingenuity has not only revamped the tech sector but has also become a staple in the lives of countless users around the globe.

Apple’s Time-Honored Innovations: Forging the Future of Tech

The Apple narrative initiated a groundbreaking chapter in 1977 with the rollout of the Apple II, a personal computing wonder that dared to shake the reign of bulky mainframes. The beats of innovation never ceased, with Apple perpetually resetting the stage with milestones like the Macintosh, the iPhone, and the iPad—devices that have revamped how people interact, connect, and entertain themselves, solidifying Apple’s stronghold as a tech trendsetter.

Past Performances

Apple’s ledger exudes excellence, mirrored in its prestigious brand standing, a dedicated user collective, and a trail of pioneering products. Revenue has seen a robust uptrend, advancing from $274.15 billion in 2020 to a striking $383.29 billion by 2023. These gains root back to Apple’s diversification into new territories such as wearables and digital services and its prowess in maintaining premium pricing benchmarks.

Following this lead, net income too has exhibited substantial growth, surging from $57.41 billion in 2020 to $97 billion in 2023. Through tactical cost-efficiency measures and wielding its strong brand to secure top-tier pricing, Apple has fortified its financial stature.

In the domain of gross margin, which signals income efficiency, stability reigns with a consistent approximation of 44%. This consistency is testimony to Apple’s lean manufacturing endeavors and its negotiation acumen with suppliers.

The operating margin shows a semblance of uniformity as well, at around 30%. These figures reflect Apple’s finesse in cost control and sustaining profit amidst the dynamic tides of the tech industry.

As for free cash flow, a metric of liquidity drawn from operations, Apple has demonstrated vigor, soaring from $73.36 billion in 2020 to $99.58 billion in 2023. Towering with such fiscal vigor gives Apple the latitude to channel funds into expansive ventures, consider strategic mergers, or enrich its shareholders via dividends and stock reacquisitions.

Source: TradingView

Possible Future Scenarios

Here’s one of our selected top tech stocks to buy – AAPL. Despite the uncertainty shown by the market in the past weeks, which can be visually observed thanks to the doji candle, the uptrend resumed supported by increasing volume.

There are no peaks, indicating that the market is quite “calm” and that the uptrend might last for the following months before calling a top.

At the time of writing, the price level at around $170 forms a good support zone, which was the previous resistance level – further indicating the interest of buyers.

The current resistance level at around $193 is successfully tested by buyers, and volumes seem to indicate a continuation of the positive trend.

8. Nvidia Corporation (NVDA)

Overview

Nestled in Santa Clara, California, Nvidia Corporation (NVDA) stands tall as an authority in sculpting state-of-the-art graphics processing units (GPUs). These specialized processors are pivotal for an array of cutting-edge applications that span gaming, machine learning, and artificial intelligence (AI). Lauded for their sheer might and efficiency, Nvidia’s GPUs command dominance in an expanse of products, right from gaming rigs and PCs to the nerve centers of data farms.

Nvidia’s Imprint of Progress: A Saga of Tech Evolution

The odyssey of Nvidia sparked into life in 1995 with the rollout of the NV1, the company’s maiden foray into graphics technology. Pushing the envelope ever since, Nvidia has unleashed trailblazing innovations like the GeForce graphics card suite and the Tesla lineup of AI processors. Such pioneering strides have not just revolutionized gaming but have also laid the foundation for emergent tech frontiers like deep learning and autonomous driving.

Past Performances

Nvidia’s fiscal narrative is marked by standout performances, echoing its formidable market foothold, a pipeline brimming with innovation, and an ever-expanding user base. Revenue has seen an ascending trajectory, rocketing from $16.68 billion in 2020 to an impressive $44.87 billion by 2023. This surge is credited to Nvidia’s explorations into new territories, including data hubs and self-piloting vehicles, coupled with its clout to secure top-dollar value for its powerhouse GPUs.

The net income trajectory has mirrored this vitality, with a leap from $4.33 billion in 2020 to $18.89 billion in 2023, driven largely by strategic cost optimization and the strength of Nvidia’s brand in demanding higher price points.

Gross margin, a critical profit metric, reached a level around 57%. Such figures are a testament to Nvidia’s productive manufacturing protocols and its bargaining tenacity with supply chain partners. Operating margin has decreased to reach around 21% in 2022.

Free cash flow, the lifeblood of operational liquidity, has showcased strength, ballooning from $4.69 billion in 2020 to $17.52 billion in 2023. Such financial robustness endows Nvidia with considerable leverage to channel investments toward innovation endeavors, strategic mergers, or to boost shareholder returns through dividends and share buyback strategies.

Source: TradingView

Possible Future Scenarios

NVDA is currently one of the most discussed stocks, and it earned a spot in Fintech Warrior‘s list of the top tech stocks to buy.

Similarly to AAPL, the market is not showing dramatic peaks and the price of the stock seems to move quite naturally.

The company is deeply involved in major tech progress, especially concerning artificial intelligence, and, both under a fundamental and technical perspective, the uptrend seems to have a long way to go. Of course, it’s always up to you to evaluate a stock according to your financial goals and attitude towards risk, and – as we said – traders and investors will have a different attitude towards this stock.

If we have a look at the weekly chart, the $390 zone is a good support zone, while the resistance – currently observed at around $485 – might be further tested before the market is ready to move the price higher, unless more buyers produce higher pressure to set a breakout.

Final Thoughts

Choosing standout tech stocks as a savvy investor means embracing a multi-dimensional method that doesn’t just glance at numbers or graphs but studies them with a keen eye. This in-depth exploration considers a company’s performance from diverse angles to capture its full financial narrative.

Moreover, peering into the future with a telescope on growth prospects, while keeping feet firmly planted in the present valuation, ensures a disciplined yet dynamic selection process. What we’ve embarked on is more than crunching numbers; it’s about reading stories.

Stories told through yields, management wisdom, product innovations, and the echoes of market sentiment. It’s about connecting dots that aren’t always linear and often forecast a bigger picture that is not immediately obvious. After all, the tech sector isn’t just about who’s leading the race today; it’s about who is geared to endure and thrive in the marathons of tomorrow.

With risk being an inseparable dance partner of reward, balancing both is akin to finding harmony in an often chaotic financial symphony. Therefore, align your investments with your individual narrative because when it comes to the stock market, one size never fits all.

FAQs

Disclaimer: This content is for informational purposes only and should not be viewed as financial advice. Consult with a qualified professional for financial guidance. FintechWarrior is not responsible for any financial decisions made based on this information.