This year witnessed a strong rally in mega-tech stocks right from the beginning. After a brief pause in late summer, they regained momentum and are poised to end the year with impressive gains. Gene Munster, a tech venture capitalist and analyst at Deepwater Asset Management, shared his insights into the outlook for tech stocks in 2024.
What Happened: Following Federal Reserve Chairman Jerome Powell‘s indication that the central bank has concluded its rate hikes, emerging tech stocks, representing companies with a market capitalization under $50 billion, outperformed the “Magnificent Seven,” as noted by Munster.
On Wednesday, while emerging tech stocks recorded an average increase of 9.3%, the “Magnificent Seven” posted a modest 1.1% gain, Munster added.
The “Magnificent Seven” includes mega-cap tech stocks like Apple, Inc. (NASDAQ:AAPL), Microsoft Corp. (NASDAQ:MSFT), Amazon, Inc. (NASDAQ:AMZN), Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), Tesla, Inc. (NASDAQ:TSLA), Nvidia Corp. (NASDAQ:NVDA), and Meta Platforms, Inc. (NASDAQ:META).
Munster suggested that given the recent strength of the technology sector, there might be a potential sell-off. However, he remains optimistic about sub-$50 billion tech stocks in 2024, even if the Federal Reserve doesn’t cut interest rates.
“A stable interest rate environment will allow investors to feel safer in returning to some of the 2021 darlings,” he added.
See Also: Best Tech Stocks Right Now
Stock Picks To Play The Trend: Benzinga screened a handful of tech stocks with sub-$50 billion market capitalization and fairly positive fundamentals using the following criteria:
Market cap between $300 million and $50 billion
Average trading volume over 500,000
Stock Price over $5
Profitable
Average analysts’ recommendation of Buy or better
The upside potential of over 20% (based on analysts’ average price target)
Allegro MicroSystems, Inc. (NASDAQ:ALGM): Manchester, New Hampshire-based Allegro is a provider of power and sensing solutions for motion control and energy-efficient systems. Its end markets include advanced mobility, green energy, and factory automation.
Axcelis Technologies, Inc. (NASDAQ:ACLS): Axcelis provides tools and process expertise to form the transistors that power all electronics, namely…
Click Here to Read the Full Original Article at Cryptocurrencies Feed…
