The technology industry has outpaced nearly another market sector within the last year and has added a tremendous amount of growth to the S&P 500. The Technology Select Sector SPDR Fund is considered a benchmark for the tech industry, which has grown by 37% within the last year. The ever-advancing field of generative AI and other innovative technology, such as cloud computing and increased semiconductor production, has led the technology industry down a path of immense profitability.
Here are a few investment options within the tech industry that have performed very well recently. They are also strong buy stocks that could continue to grow throughout 2024.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) is primarily a technology infrastructure company that offers storage and server systems such as full racks, blade servers, security software, subsystems, and rack-mount servers. Its products are used in data centers, artificial intelligence, and cloud computing technology.
Super Micro Computer has been one of the best-performing stocks in the market over the past year, growing nearly ninefold during that time due to increased earnings growth and a surge of investors flocking to companies that provide new and innovative tech, especially within the cloud computing and generative AI industries.
On Jan. 29, SMCI released its earnings for the second quarter of fiscal year 2024, in which it stated that total revenue more than doubled to $3.7 billion, and net income rose by 68% compared to the previous year. Management reported that the anticipated revenue for SMCI in the third quarter of FY 2024 is between $3.7 billion and $4.1 billion.
Earlier last month, it was announced that Super Micro Computer would be added to the S&P 500 following its scheduled rebalance. SMCI replaced Whirlpool (NYSE:WHR). This move further legitimizes Super Micro Computer as a strong company with further upside potential, which makes it a great option for investors in 2024, even after its impressive share price growth.
AppLovin (APP)
AppLovin (NADSAQ:APP) is an application software company that provides an advertising infrastructure platform with products such as MAX, Spark, AppDiscovery, SparkLabs, Array, and Adjust.
Similar to SMCI, AppLovin has received plenty of positive attention for its involvement in innovation within the generative AI space, which has brought tremendous growth.
On Feb. 14, APP repotted earnings results for the fourth quarter of the full year 2023, in which it stated that it beat analyst expectations for total revenue, which increased by 36% year-over-year. Its earnings per share were forty-nine cents per share, which beat by fourteen cents per share. In a press release, AppLovin reported a secondary offering of common stock by KKR Denali Holdings of nearly 20 million shares. It has also announced a share buyback program of $570 million worth of shares.
Over this past year, its share price has more than quadrupled, with continued growth expected due to its strong positioning within the rapidly growing tech industry. It is a solid pick for investors looking for greater exposure within companies that have profited heavily from the expansion of generative AI.
ACM Research (ACMR)
ACM Research (NASDAQ:ACMR) is a producer of semiconductor-related equipment. It offers wafer cleaning equipment and electrochemical plating technology.
ACM Research is still surprisingly considered an undervalued company, especially in the realm of many other semiconductor-related stocks such as Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), which have experienced growing popularity and a large increase in overall share price.
On Feb. 28, it reported earnings for the fourth quarter of fiscal year 2023, which stated that net income increased by 64% year-over-year. ACMR also beat analyst predictions for revenue by $21 million and earnings per share by twenty-six cents per share.
ACM Research is a strong buy stock within the semiconductor industry. Its share price has more than doubled within this last year, primarily due to its outstanding earnings report for the fourth quarter, which immediately, upon release, propelled its share price by over 40%. It is poised for continued growth with revenue guidance for the full year 2024 of between $650 million and $750 million, topping the full-year 2023 results of $558 million by at least 17%.
As of this writing, Noah Bolton held a LONG position in APP. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
