The signals are growing stronger and stronger for tech stocks. 

If the Federal Reserve continues to see firm economic signals, it will inevitably choose to lower rates shortly. That’s why the news that October’s CPI hit its lowest rate in  2 years was such a strong signal.  It tells the markets that the Federal Reserve decisions are having the intended effect. 

 Eventually, it will reverse course and decrease the federal funds rate, lowering borrowing costs. Tech firms will again have access to cheaper capital that will fuel the rapid top-line growth, increasing share prices.

So, with this backdrop of falling interest rates, here are the best tech stocks to consider.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) has received more attention than any other stock in 2023.  It has emerged as the king of AI due to its dominant chips. 

Little is expected to change in 2024. The company’s H100 chips Continue to be in high demand for AI applications across Tech and all industries. However, Nvidia will not rest on its Laurels and recently Unveiled the H200 tensor core GPU. 

Those chips will be available by mid-2024. That means the company will have multiple catalysts working in its favor that promise to increase its shares. The H100 chips already dominate, the H200 chips promise to extend Nvidia’s advantage, and the company is also speeding up its development cycles moving forward. That means the company is expected to deliver subsequent chips in one-year cycles rather than the current two-year cycle. Thus, the potential for Nvidia to jump even further ahead of its competitors remains very strong.

A side note, it would be entirely reasonable to purchase all of the other Magnificent Seven stocks at this point. That would be an entirely reasonable strategy with lower borrowing costs on the horizon. However,  this article covers additional tech stock with a lot of upside potential.

Technology Select Sector SPDR ETF (XLK)

Technology Select Sector SPDR ETF (NYSEARCA:XLK) is an excellent choice for investors seeking broad, relatively safe exposure to tech stocks.

All of the advantages of ETFs exist in XLK shares. Investors get the reduced risk of an ETF relative to an individual stock, lower costs, the benefits of diversification, and tax benefits. Additionally, its shares include a modest dividend yielding 0.77%. In short, XLK stock offers a balance inherent in ETFs and the upside potential of tech stocks as peak rates pass.

The other benefit is that Technology Select Sector SPDR ETF grants investors exposure to the leading tech names that make up the Magnificent Seven. The two largest stocks by market capitalization comprise more than 45% of the fund’s holdings. So, investors will benefit as those leading tech names move even higher, precisely what is anticipated. Furthermore, investors benefit from the modest dividend and the other benefits of ETF investing.

Technology Select Sector SPDR ETF isn’t necessarily the best tech ETF as there are many other strong choices. That said, investors would do well to invest in it or a similar ETF at this point in the business cycle.

Broadcom (AVGO)

Broadcom (NASDAQ:AVGO) continues to look strong due to the same catalysts mentioned above for other stocks. The company has a dominant position in semiconductor software And intellectual property. Beyond that, Broadcom is also very relevant as its acquisition of VMware (NYSE:VMW) is expected to close soon.

That means Broadcom is highly likely to add the provider of multi-cloud App services with a strong enterprise presence to its business. So, Broadcom will increase its overall footprint to include further strengthened Cloud infrastructure via VMware.

Neither company has shown strong growth in recent quarters. However, that shouldn’t be necessarily expected because neither is a growth firm. Instead, both firms intend to focus on steady, Lower top-line growth while each continues to increase their bottom-line results.

The merger of the two companies Requires the approval of China. President Xi’s recent visit to the United States could be a positive catalyst for that approval to follow soon. 

Qualcomm (QCOM)

Investing in Qualcomm (NASDAQ:QCOM) is also an investment in Apple (NASDAQ:AAPL) to some degree. That’s a decent place to start when discussing Qualcomm and its shares. 

Qualcomm provides chips used in Apple’s iPhones. However, Qualcomm’s continued position as a supplier of those chips was in doubt until relatively recently. In September, the company announced that it had signed a deal with Apple to provide its Snapdragon 5G Modem-RF Systems In 2024, 2025, and 2026. Clearing that major hurdle means that Qualcomm has passed its most significant issue and sets the company up for relatively stable operations in the near future.

Stable operations allow investors to focus on Qualcomm’s growth potential. The company’s Snapdragon 8 Gen 3 chips are expected to be a major factor in bringing generative AI to handsets. In addition, the company recently provided an updated forecast for the December quarter, which included higher-than-expected revenues.

Synopsys (SNPS)

Synopsys (NASDAQ:SNPS) is a firm that proves that not all AI stocks are worth investing in to produce chips. Instead, the company can be thought of more as a picks-and-shovels investment in the space. 

The company makes design automation software for the semiconductor industry. The company’s DSO.ai searches for optimization targets during the design phase of chip manufacturing.  In other words, it leverages AI to find ways to improve processes and outcomes, all while reducing costs.

Synopsys also sells AI-powered software for semiconductor production’s verification and test phases. The company will release earnings on Nov. 29. It has performed well this year.

 While investors will continue to await its upcoming results eagerly, they should also note that the company continues to further its collaboration with Microsoft (NASDAQ:MSFT). Synopsys.ai Copilot integrates Azure Cloud, generative AI, and Synopsys’ capabilities for the purpose of improving the semiconductor design process. 

Palantir (PLTR)

Palantir (NYSE:PLTR) Continues to perform very strongly while showing signs that its revenue base is shifting. Palantir has been most strongly associated with analytics that serve its strong relationships with government entities.

However, the company’s government revenues reached $308 million in the most recent quarter, while Wall Street had expected $321 million. CEO Alexander Karp explained that the business segment was prone to fluctuations. At the same time, the company sent strong signals that its commercial Revenue base will continue to grow. 

Commercial revenues grew by 23% to $251 million. Current expectations suggest that Palantir’s commercial segment could double by the first quarter 2025. 

The stock has done incredibly well in 2023, Having more than tripled in price from its starting point below $7. Palantir continues to show strong top-line growth, with revenues reaching $558 million and growing by 17%. Further, Palantir has shown outsized growth is measured across various segments and is showing strong future commercial potential which bolsters its already strong public sector presence.

Manhattan Associate Incorporated (MANH)

Manhattan Associate Incorporated (NASDAQ:MANH) is a company that creates solutions to supply chain and inventory problems, especially in the e-commerce space. Its stock may be relatively unknown, but the e-commerce space will continue to snowball. That makes firms like Manhattan Associate Incorporated very much worthwhile for investors. 

That said, MANH stock has performed very well in 2023, having risen more than $100 year to date to its current price above $220. Revenues and EPS figures grew by more than 20% during the most recent earnings. Those figures bested those that analysts were expecting. All in all, this makes MANH one of those tech stocks to consider.

The stock will continue to garner attention because many investors are seeking to understand the growth potential in the warehousing space. Applying AI to those spaces promises to supercharge e-commerce by speeding fulfillment, reducing costs, and other factors.

That suggests Manhattan Associates Incorporated should continue to see strong demand moving into 2024 as interest rates peak and begin to drop. Capital will cheapen, and that will spike investment into the space, which is already strong. 

On the date of publication, Alex Sirois 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.