Technology stocks continue to outperform. Despite predictions that a great rotation into value and small-cap stocks is coming, the reality is that large-cap tech stocks continue to drive the market higher. As the first half of the year draws to a close, the tech-laden Nasdaq Composite index is up 20% compared to a 15% gain in the benchmark S&P 500 index and a 4% increase in the blue-chip Dow Jones Industrial Average.
Moving into the year’s second half, there are a number of technology stocks that look set up for success. While many are already up on the year, they have momentum behind them and catalysts likely to drive their earnings and share prices higher in the coming months. For investors, adding technology growth stocks can be a great way to boost a portfolio and outperform the broader market.
You’ve been warned! Here are seven tech stocks to buy now or regret forever.
Amazon (AMZN)
E-commerce giant Amazon (NASDAQ:AMZN) has announced it will hold its latest “Prime Day” sales event on July 16 and 17. It will be the 10th Prime Day event held by Amazon and will see millions of products offered at discounted prices. The sales event, which takes place simultaneously in 23 countries, typically gives Amazon’s financial results and its stock a lift during the slow summer months.
Investors may want to load up on AMZN stock ahead of the upcoming Prime Day and before the shares really takeoff. Amazon stock currently has a Strong Buy rating, with all 42 Wall Street analysts that cover the company rating the shares a Buy. Also, the median price target on Amazon stock is nearly 20% higher than where the shares are currently trading. The consensus view is that this is a tech stock that has room to run.
So far in 2024, Amazon stock has risen 23%.
Broadcom (AVGO)
Chipmaker Broadcom’s (NASDAQ:AVGO) stock took off after the company announced strong financial results and announced a 10-for-1 stock split that’s taking place on July 12. Now, there are media reports that Broadcom is teaming up with China’s ByteDance, the privately held company behind the social media app TikTok, to develop an advanced artificial intelligence (AI) microchip.
Media reports say that ByteDance and Broadcom are working on a five-nanometre application-specific integrated chip (ASIC) that will comply with U.S. export restrictions. ByteDance and Broadcom have been business partners since 2022. The Chinese company previously purchased Broadcom’s Tomahawk five-nanometer high-performance microchip.
The ByteDance microchip partnership is just one more reason to consider AVGO stock. There looks to be a buy-the-dip opportunity with Broadcom right now as its share price pulled back 14% at the end of June as the broader semiconductor sector endures some turbulence. Broadcom stock remains up 45% on the year.
Coinbase (COIN)
Investors who want supercharged returns and exposure to cryptocurrencies should consider taking a position in Coinbase Global (NASDAQ:COIN). The cryptocurrency exchange reported financial results for this year’s first quarter that showed a surge in profits as trading in Bitcoin (BTC-USD) and other digital assets accelerates. The company reported EPS of $4.40, 303% higher than the $1.09 expected by analysts.
Sales in Q1 totaled $1.64 billion versus the $1.34 billion expected on Wall Street. Coinbase, the biggest crypto exchange in the U.S., said the results were due to a steady rise in crypto trading as the price of Bitcoin reached record highs in March of this year. A year earlier, Coinbase reported a loss of $78.9 million, or 34 cents per share. COIN stock has risen 263% over the last 12 months, beating the gains in nearly all other stocks, including Nvidia (NASDAQ:NVDA).
Hewlett Packard Enterprise (HPE)
A fuse has been lit under the stock of Hewlett Packard Enterprise (NYSE:HPE) after that company also reported better-than-expected financial results. HPE stock vaulted 15% higher after the information technology company posted EPS of 42 cents, which beat the consensus expectation among analysts of 39 cents. Revenue for what was the company’s fiscal second quarter came in at $7.20 billion, topping forecasts of $6.80 billion.
Best of all, management attributed the strong results to rising demand for its AI servers, which is what investors wanted to hear. Company executives said they are benefiting from a loosening in the supply of Nvidia’s H100 microchips used in its servers. As a result, AI systems revenue at HP Enterprise more than doubled sequentially to $900 million in the most recent quarter, with more growth forecast.
HPE stock is now up 25% on the year and looks likely to move even higher in the coming months.
Applied Materials (AMAT)
Another way to play the boom in microchips and semiconductors is with Applied Materials (NASDAQ:AMAT). The company makes microchip components used by companies such as Nvidia and Advanced Micro Devices (NASDAQ:AMD). The company has been a going concern since 1967 and its early products are housed in the Smithsonian Museum.
AMAT stock is up 46% this year and a top performer, thanks, in large part, to rising demand for its products fueling earnings growth. Applied Materials most recently reported EPS of $2.09, ahead of analysts’ consensus estimates that called for a profit of $1.99 per share. Revenue in the quarter totaled $6.65 billion, topping consensus forecasts of $6.54 billion.
Through five years, AMAT stock has gained 402%, making it a tech stock to buy.
T-Mobile (TMUS)
Telecommunications giant T-Mobile (NASDAQ:TMUS) looks like a buy as it moves to acquire the majority of rival U.S. Cellular (NYSE:USM) for $4.40 billion. The purchase includes U.S. Cellular’s mobile phone customers, its network of retail stores and some of its wireless spectrum. T-Mobile said it will use U.S. Cellular’s wireless spectrum to improve internet coverage in rural areas.
T-Mobile is also allowing U.S. Cellular customers to keep their current wireless plans or switch to a new plan. The acquisition is working its way through regulatory approvals and a closing date for the transaction has not been announced. But once complete, the addition of U.S. Cellular should bolster T-Mobile’s telecommunications offerings and earnings. TMUS stock has increased 33% over the last 12 months, including an 11% gain this year.
Airbnb (ABNB)
The summer travel season is in full swing, which bodes well for Airbnb (NASDAQ:ABNB). The homestay and short-term rental company sees a noticeable boost in booking and revenue during the third quarter of the calendar year, which includes the summer months. Already this year, Airbnb has seen its financial results power higher as travel hits new all-time highs following the ravages of the COVID-19 pandemic.
For this year’s first quarter, Airbnb posted EPS of 41 cents, which crushed consensus analyst estimates of 24 cents. The profit was up 126% from a year ago and the company’s best first quarter ever. Revenue in the period totaled $2.14 billion, which was also ahead of Wall Street forecasts of $2.06 billion. Additionally, gross bookings came in at $22.90 billion, up 12% year over year, and the company’s free cash flow at the end of the quarter stood at $1.90 billion.
The strong performance has driven ABNB stock up 12% on the year. More gains can be expected if the company’s financial performance continues to impress.
On the date of publication, Joel Baglole held long positions in NVDA and AMAT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.