Shares of these big tech companies are likely to rise in the coming months.
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The current rally in technology stocks includes: NVIDIA (Nasdaq:NVDA). Nvidia stock continues to get the most attention from the financial media, but there are plenty of other tech stocks with impressive gains and exciting things happening at their underlying companies.
Equally important is the burgeoning artificial intelligence (artificial intelligence) trading. Despite what recent news might suggest, Nvidia isn't the only stock to buy to take advantage of the AI boom and growing demand for the components that power AI applications and models.
Investors willing to spread their wings can find plenty of great tech stocks to invest in right now. Here are three big tech stocks to buy through June 2024.
Dell Technologies (DELL)
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Dell Technologies (New York Stock Exchange:Dell) looks like a good bet, but don't take our word for it. Investment Banking Morgan Stanley (New York Stock Exchange:MS) is buying Dell shares aggressively after meeting with management. Morgan Stanley has named Dell a “top pick” and said the company's shares could rise as much as 40% from current levels. Morgan Stanley is encouraging investors to take advantage of the selloff in Dell shares following the company's earnings report at the end of May.
That retreat appears to be over now. Dell shares rose nearly 10% last week on not only Morgan Stanley's recommendation but also on news that the company is making servers that run AI chips for Elon Musk's startup xAI. Dell's shares had been falling all through June on concerns about the profitability of its emerging AI server business. The company has now put those concerns to rest.
Dell's stock price has risen 183% over the past 12 months, and there are rumors that it may soon be added to the S&P 500 index. Dell is currently the largest stock by market capitalization. do not have in the benchmark index.
ARM Holdings (ARM)
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Among the new stocks being added to the index is a British semiconductor manufacturer. Arm Holdings (Nasdaq:arm) will be added to the Nasdaq 100 Index, replacing a struggling satellite radio provider. SiriusXM (Nasdaq:SiriNasdaq said in a news release that the change took effect June 24 and is part of its quarterly rebalancing. The Nasdaq 100 is made up of the top 100 stocks in the broader Nasdaq Composite Index and is rebalanced quarterly to take into account market capitalization and stock price performance.
ARM Holdings' market cap is currently $168 billion, and its shares have risen 164% since its September 2023 listing. By comparison, Sirius XM's market cap is $11 billion. The company's shares have fallen nearly 50% so far in 2024 and are trading at less than $3 per share, making it a penny stock. ARM shares are expected to benefit from inclusion in the Nasdaq 100, which will encourage mutual funds and exchange-traded funds (ETFs) that track the index to buy the company's shares, boosting its share price.
Broadcom (AVGO)
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Another semiconductor manufacturer that appears to be doing well is Broadcom (Nasdaq:AVGOThe company's stock has soared since it reported better-than-expected earnings and announced a 10-for-1 stock split. Broadcom shares rose 12% after the company said it would start trading at the split-adjusted price starting July 15. The split will lower the stock's price to $166 from the current price of about $1,660, making it more affordable for retail investors.
News of the stock split came alongside financial results that showed Broadcom is benefiting from growing demand for its AI microchips and processors. The company reported first-quarter EPS of $10.96, compared with analysts' expectations of $10.84. Revenue was $12.49 billion, beating expectations of $12.03 billion. Management said the company's AI products generated more than $3 billion in sales in the first quarter. AVGO shares have nearly doubled over the past 12 months.
Analysts are liking the stock heading into a stock split. The consensus of 23 Wall Street analysts is that AVGO stock is a Buy stock, with a median price target of 15% above current levels.
As of the publication date of this article, Joel Bagrol held a long position in NVDA. Opinions expressed in this article are those of the author and follow InvestorPlace.com's publishing guidelines.
