It seems like we just rang in 2023, and unexpectedly, we’ve already found ourselves in its second half of the year. Consequently, it’s time for investors to set their sights on the upcoming year, particularly directing their attention toward promising tech stocks.
Indeed, technology stocks displayed impressive performance in the year’s first half. Considering their historical trend, it is likely they will sustain this strong performance into the latter half of the year.
The tech industry is a rich hunting ground for those seeking future growth stocks, and 2024 is shaping up to be no exception. Amid the clamor of the market, discerning investors are harnessing the power of innovation to fuel their portfolios. Each day, the digital world unfurls new possibilities and provides new avenues for growth.
Investing in 2024 will be an exciting journey, navigating through the peaks and valleys of the tech landscape. And as we stand at this precipice, we’re diving into the promising tech stocks that could provide impressive returns in the coming year.
Salesforce (CRM)
Investing in the technology industry is about capitalizing on high-growth plays, and in 2024, Salesforce (NYSE:CRM) will continue to embody this ethos. With a year-to-date return of 69%, Salesforce is a formidable force, showcasing unwavering strength.
As a leading cloud-based customer relationship management company, Salesforce started the fiscal year with exceptional performance in Q1, surpassing expectations. It reported a year-over-year revenue surge of 11% to $8.3 billion, emphasizing its position in the cloud computing market.
Salesforce’s growth stems from its venture into artificial intelligence, specifically through its Einstein AI technology. This tech empowers users to extract key insights from their company data. It also just rolled out Einstein GPT, a fresh version of the software. Salesforce maintains that this new edition can serve a staggering 200 billion AI-driven predictions per day.
What’s even more noteworthy is Salesforce’s investment of $500 million in its AI venture fund, underscoring its dedication to fostering innovation and future expansion.
Finally, another bit of news attracting attention is the first list price increase for Salesforce products in seven years. Given its dynamic business model and the substantial value it offers, customers are likely to embrace this change. Investors certainly believe so because they rewarded the move with a bump in the stock price.
Qualcomm (QCOM)
Navigating the tech industry’s complex landscape is indeed a significant endeavor. Amidst the bustling noise of this rapidly expanding sector, one name echoes loud and clear: Qualcomm (NASDAQ:QCOM), a powerhouse in the semiconductor industry.
Over the past five years, Qualcomm has demonstrated substantial growth, with its stock appreciating by an impressive 110%. With the inevitable expansion of the wireless market, Qualcomm is poised to stride into 2024 in an enviable position.
Unfortunately, Qualcomm is on the receiving end of a worldwide trend. IDC, a renowned technology research firm, has recently released a report showing a significant downturn in mobile phone sales. The findings indicate a near-15% decline during the initial quarter of 2023 versus the preceding year. As a result, Qualcomm is forecasting a soft outlook, and shares of the chip designer are struggling.
However, this market dip does more than paint a gloomy picture. It actually unveils a window of opportunity for investors waiting to tap into future growth stocks.
Specifically, IDC believes that the wireless market is getting ready to recover. And Qualcomm is braced for the wireless market’s forthcoming boom. Therefore, Qualcomm’s current valuation could represent a bargain for investors ready to play the long game.
Adobe (ADBE)
As we get ready for 2024, tech stocks continue to shape the investing landscape. As part of this, Adobe (NASDAQ:ADBE) has seen an impressive year-to-date return of 58%.
The software giant has earned recognition for its suite of creative and productivity solutions. It has positioned itself to harness the expanding digital economy and meet the surging demand for its products.
Additionally, its Q2 fiscal 2023 results have underscored Adobe’s financial health. The San Jose, California-based tech giant made $4.8 billion in the quarter, up 10% versus last year. Notably, the company surpassed analyst projections, reporting diluted EPS of $3.90 against a projected $3.80
Looking ahead, Adobe’s potential growth trajectory has never appeared more promising. With strategic moves like the proposed $20 billion Figma acquisition and the expansion of its generative AI tool to over 100 languages, Adobe is making assertive strides. Undeniably, this tech titan holds an alluring appeal for investors keen on future growth stocks in the tech sector.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
