The prospects for the technology sector are shaping up well as the economy enters 2024 with cooling inflation, forecasts of several interest rate cuts, and improved consumer spending. To top this, the ongoing artificial intelligence (AI) race continues to push tech firms to innovate new products, which appears to be promising for the expansion of the industry. Therefore, investors with a long-term investment horizon could consider investing in the tech sector.
Leveraging the TipRanks Stock Screener tool, we have shortlisted stocks with the potential to outperform the market averages. These five stocks have received a Strong Buy rating from analysts and have an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks. Moreover, the analysts’ price targets reflect an upside potential of more than 20%.
Here are the five key stocks from the tech sector that investors can consider.
- Nvidia (NASDAQ:NVDA) – This software company manufactures computer graphics processors, chipsets, and related multimedia software. The stock’s price forecast of $661 implies a 36.7% upside potential. NVDA stock has a Smart Score of “Perfect 10.” This week, two analysts rated the stock a Buy.
- Nice (NASDAQ:NICE) – NICE specializes in customer relations management software, AI, digital, and workforce engagement management solutions. Analysts currently see an upside potential of 28.6% in NICE stock. Also, it has a Smart Score of “Perfect 10.”
- Smartsheet (NYSE:SMAR) – The company designs and develops a cloud-based platform for work management. The stock’s price forecast of $55.21 implies a nearly 22% upside. SMAR stock has a top-notch Smart Score of “Perfect 10.” Following upbeat Q2 results released on December 8, six analysts rated the stock a Buy.
- Braze (NASDAQ:BRZE) – Braze is a customer engagement platform that powers customer-centric interactions between consumers and brands. BRZE stock has an analyst consensus upside of 24% and a Smart Score of nine. The company reported better-than-expected fiscal Q3 results on December 7, after which 15 analysts rated the stock a Buy.
- Axcelis Technologies (NASDAQ:ACLS) – Axcelis manufactures dry strips, ion implantation, and other processing equipment used in the fabrication of semiconductor chips. ACLS stock’s average price target implies a consensus upside of 29.8%. Moreover, it has an outperforming Smart Score of eight.
