The technology sector has been the golden goose of the market, outshining all others with its meteoric growth and unparalleled contributions to the S&P 500. The Technology Select Sector SPDR Fund has seen remarkable growth, soaring by 37% in the past year. Fuelled by cutting-edge advancements in generative AI, cloud computing, and semiconductor production, the tech industry’s profitability knows no bounds.
Riding the Tech Wave: Unveiling Top Performers
As the tech industry continues its upward trajectory, certain investments stand out as stars in the constellation of growth. These tech stocks have shone brightly and are expected to keep shining through the rest of 2024.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) is a pioneer in technology infrastructure, specializing in storage and server systems like blade servers, rack-mount servers, and security software. With applications in data centers, artificial intelligence, and cloud computing, SMCI has become a sought-after player in the tech landscape.
In a remarkable feat, SMCI’s stock soared nearly ninefold over the last year, fueled by robust earnings growth and investor frenzy towards tech innovators, especially in cloud computing and generative AI. With its recent earnings release for the second quarter of fiscal year 2024, SMCI reported a stellar performance, more than doubling total revenue to $3.7 billion and witnessing a 68% surge in net income year-over-year. The company’s projected revenue for the third quarter of fiscal year 2024 falls in the range of $3.7 billion to $4.1 billion.
A significant milestone for SMCI was its inclusion in the S&P 500, taking Whirlpool’s (NYSE:WHR) spot in a quarterly rebalance. This move cements SMCI’s reputation as a robust contender with ample upside potential, making it an enticing pick for investors in 2024, even after its impressive price appreciation.
AppLovin (APP)
AppLovin (NASDAQ:APP) stands at the forefront of application software, providing an advertising infrastructure platform featuring a suite of products like MAX, Spark, and AppDiscovery. Its involvement in generative AI has propelled it to exponential growth and market acclaim.
With its latest earnings report for the fourth quarter of the full year 2023, APP exceeded analyst expectations, reporting a 36% year-over-year revenue increase and a GAAP EPS of $0.49, surpassing predictions by $0.14. Additionally, the company announced a secondary offering of common stock by KKR Denali Holdings, comprising nearly 20 million shares, alongside a share buyback program totaling $570 million.
APP’s share price quadrupled over the past year, with further growth anticipated owing to its strong foothold in the tech industry’s expansion, particularly in generative AI.
ACM Research (ACMR)
ACM Research (NASDAQ:ACMR) specializes in semiconductor-related equipment, offering advanced wafer cleaning equipment and electrochemical plating technology.
Despite the buzz surrounding semiconductor stocks like Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), ACMR is deemed undervalued. In its fourth-quarter fiscal year 2023 earnings report, ACMR exceeded expectations, witnessing a 64% year-over-year increase in net income and outperforming revenue projections by $21 million and earnings per share by $0.26.
The stock price of ACMR more than doubled over the past year, primarily ignited by an impressive fourth-quarter earnings report that catapulted its share price by over 40%. With revenue guidance for the full year 2024 ranging between $650 million and $750 million, surpassing the previous year’s results by at least 17%, ACMR is poised for sustained growth.
Get ready to take flight with these high-flying tech stocks in April 2024, as they continue to redefine the landscape of the tech industry and offer promising prospects for investors.