From NASDAQ.: 2024-04-01 08:26:00

U.S. stock markets had a strong first quarter of 2024, defying predictions of overvaluation, with the potential for continued bullish performance driven by a robust economy. 2023 saw a steady rise in GDP, assuring no near-term recession. Despite rising core PCE inflation, the labor market remained resilient, supporting strong consumer spending.

The ongoing tech rally is focused on AI, particularly generative AI, with significant future business opportunities for companies producing high-end AI products. AI-powered semiconductors are in high demand for smart devices, boding well for the industry’s growth potential in the U.S. and international markets.

The first-quarter 2024 earnings season is expected to be positive, following three consecutive quarters of earnings growth in 2023. S&P 500 earnings for Q1 are projected to rise by 2.5% year-over-year, marking a continued trend of growth in revenues and earnings.

The Fed’s indication of potential rate cuts in 2024, with a forecast benchmark lending rate of 4.625% by year-end, points towards a supportive environment for growth stocks like technology. Five tech behemoths with strong business models, financial positions, and brand value are poised for significant growth potential in 2024.

Top technology picks for 2024 include NVIDIA Corp. (NVDA), Meta Platforms Inc. (META), Micron Technology Inc. (MU), Microsoft Corp. (MSFT), and Amazon.com Inc. (AMZN). These companies have shown strong double-digit returns year-to-date, with positive earnings estimate revisions and growth rates expected for the current year. NVDA leads in compute & networking revenue growth, while META benefits from user engagement and AI innovation. MU and MSFT target AI and cloud services, with AMZN thriving in Prime, AWS, and advertising.



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