The landscape of technology has been dynamically changing. This has encouraged businesses in this sector to embrace innovative strategies and advanced technology, particularly in areas such as digital entertainment and cloud computing. In this article, we examine the reasons behind their accomplishments and potential for future growth, highlighting large-cap tech stocks to buy.
For potential investors, this piece presents valuable insights into the paths taken by these tech behemoths to achieve trillion-dollar valuations. We also delve into an in-depth analysis of each company’s strengths, its positioning for the future, potential obstacles that may impede its path, and its financials.
To provide clarity on the contributions of the dynamic leaders driving growth in the tech industry, we scrutinize their forward-looking strategies. Lastly, impartial expert opinions are used to predict what lies ahead for these tech giants.
So keep reading for ideas on large-cap tech stocks to buy.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) leads our list. Currently the closest to reaching trillion-dollar status, it boasts a market cap of $968.67 billion (as of writing). The rise in Nvidia’s market cap is no mystery. With shares up 170.17% year to date, it hovers just below a new 52-week high.
As we look ahead, Wall Street gives Nvidia a thumbs up. Yes, it has a staggering P/E ratio of 205.21. But Nvidia’s fundamentals show a substantial upswing. With a quarter-over-quarter EPS growth of 28.70%, and a projected further growth of 33.53% next year, things look bright.
The signs point to Nvidia’s rally pressing on. A strong upward trend has prevailed since the year’s start. Its position in the buyable territory on the Relative Strength Indicator (RSI) remains solid. Now, with the S&P 500 stepping into bull market territory, it could spur investors to keep the buying momentum.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) is another one of those large-cap tech stocks to buy. The automaker’s market cap is also massive at $760.93 billion. Unlike NVDA stock, TSLA reported improvements in its revenue growth over earnings in the most recent quarter. Sales grew 24.40%, while EPS shrank 23.90%.
Tesla also benefited from a surge in enthusiasm for the company as investors made a pivot back to tech stocks. Its share is up 102.82%, and some of the biggest hawks on Wall Street believe it could rise much further. Cathie Wood, who manages the ARK Innovation ETF (NYSEARCA:ARKK), gave Tesla a $2,000 price target in April.
Coincidentally or not, TSLA stock is one of the fund’s largest holdings.
It should be noted that from a purely momentum-based standpoint, TSLA is currently overbought. Its RSI reading is 86.87 at the time of writing. However, the market isn’t fully convinced that shares should fall. Its short-interest ratio is only 3.45%. The out-performance of the Nasdaq this year may also be pushing investors’ FOMO buttons, lest they miss out on another strong rally.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) ranks third. It boasts a market cap of $693.66 billion. Of the three techs stocks, it has the most robust rally. This rally kicked off last November. Now, its shares trade above both 20-day and 50-day moving averages.
Wall Street forecasts a bright future for Meta. They project a consensus price target of $275. Shares are overbought right now. Yet, a slight downward correction could give bulls a breather. This can keep the impressive trend line moving upwards.
Where does Meta’s strength lie? It’s rooted in renewed market optimism. The fascination with tech like AI and VR also plays a role. On the social media front, fragmentation persists. Mark Zuckerberg just announced a new competitor to Twitter, which could add more fuel to the fire.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.