Shares of large tech companies, including Nvidia (NASDAQ:NVDA), Shopify (NYSE:SHOP)(TSE:SHOP), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT) closed higher on November 23, after the minutes from the Fed’s latest meeting indicated that most officials see smaller rate hikes in the future. The easing of macro headwinds sets the ground for a recovery in tech stocks.
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This is a positive signal for tech stocks, which lost substantial value in 2022 due to rising interest rates that drove up the cost of capital and lowered their valuations.
Another positive catalyst is the continued moderation of inflation. While inflation remains high, its growth rate has consistently decreased after peaking in June.
The recent developments are positive for tech stocks and should support the recovery in their price. However, economic uncertainty could limit the upside.
Should You Buy Tech Stocks Now?
Using TipRanks’ Stock Comparison tool, let’s find out which of these tech stocks is more likely to beat the broader markets.
TipRanks’ data reveals that only Microsoft and Amazon stocks have a Strong Buy consensus rating. Moreover, MSFT, AMZN, and NVDA stocks carry an Outperform Smart Score of eight or above, implying that they are more likely to beat broader markets.
While Shopify stock has gained on improving macro trends, it has a Moderate Buy consensus rating and a Neutral Smart Score of four out of 10.
Taking everything into account, MSFT stock appears to have the upper hand as it offers a decent upside potential of over 18%, has a Strong Buy consensus rating, and sports a “Perfect 10” Smart Score (stocks with a “Perfect 10” Smart Score have consistently generated positive alpha).
