SPECIAL REPORT The Top 7 Stocks for 2024

3 Top-Rated Tech Stocks That Analysts Are Loving Now

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  • As the market enters another rally, some analysts are preferring these top-rated tech stocks over others.
  • ACM Research (ACMR): China’s growing semiconductor sector will provide ample future growth opportunities.
  • Super Micro Chip (SMCI): A strong earnings beat and dynamic end markets should keep SMCI on investors’ buy lists. 
  • Camtek (CAMT): The end of the chip slump should help grow revenue in 2024.
top-rated tech stocks - 3 Top-Rated Tech Stocks That Analysts Are Loving Now

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Tech stocks have been on a tear in 2023, as the Nasdaq Composite Index has surged more than 36% year-to-date, outperforming the broader market. While stocks endured a steep sell-off between August and October, these days, the tech sector has started to benefit from favorable macroeconomic news, which has indicated the Federal Reserve’s fight against inflation may soon be over. Still, despite a general rally among tech stocks, Wall Street analysts are enthusiastic about some over others. Below are three top-rated tech stocks analysts love nowadays.

ACM Research (ACMR)

a magnifying glass enlarges the ACM logo on a website
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ACM Research (NASDAQ:ACMR) is a leading supplier of wet processing equipment and technologies for the semiconductor industry. Semiconductor manufacturers use ACM’s wet-cleaning and front-end processing tools to produce higher yields in their manufacturing processes. The company focuses on China, where it conducts most of its product development, manufacturing and support services. Though China is still enduring a slower-than-expected economic recovery, innovations within its semiconductor industry have been one of the bright spots, and ACM certainly stands to benefit.

Wall Street analysts have looked upon ACMR fondly. According to Koyfin, the stock currently has a “strong buy” rating. The stock only trades at 17.0x forward earnings, which is not cheap but also far from semiconductor equipment peers, including Cohu (NASDAQ:COHU) and Veeco Instruments (NASDAQ:VECO).

Super Micro Computer (SMCI)

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Source: Shutterstock

Super Micro Computer (NASDAQ:SMCI) is a global leader in high-performance server solutions for enterprise, cloud, data center and edge computing. The company offers a wide range of products, such as servers, storage systems, networking devices and software solutions that are customized to meet the specific needs of its customers. In recent years, Super Micro Computer has benefited from the increasing demand for cloud infrastructure and data processing capabilities, generating strong, double-digit revenue growth in their fiscal years 2022 and 2023.

In their first quarter of fiscal 2024 earnings print, which ended in September 2023, the company beat both revenue and net income estimates. Furthermore, Super Micro Computer’s end-markets, which include AI and 5G applications, will be in high demand for years to come, resulting in analysts giving the company a “strong buy” rating.

Camtek (CAMT)

Camtek Ltd logo visible on display screen.
Source: Pavel Kapysh via shutterstock

Camtek (NASDAQ:CAMT) is a leading inspection and metrology equipment manufacturer for the semiconductor industry. The company’s products enable chipmakers to detect defects and measure the critical dimensions of wafers and circuits during manufacturing. Robust demand for semiconductors, especially from the memory and advanced packaging segments, has benefitted Camtek’s top-line growth for many years.

However, in 2023, the company has definitely hit a speed bump as the chip slump has negatively affected many semiconductor companies (albeit some more than others) this year. During the third quarter, for example, the company reported only a 2% decline in revenue from a year-over-year perspective. However, analysts seem optimistic about Camtek’s long-term potential, as the stock maintains a “strong buy” rating.

Moreover, as the chip slump appears to be approaching an end, Camtek could see more growth next year.

On the date of publication, Tyrik Torres did not have (either 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.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.


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