Technology sector leading market rally with Apple and Microsoft showing strength in AI and growth

From Nasdaq: 2024-06-17 11:58:00

The technology sector is leading the 2024 market rally, driven by AI, rate cuts, and the “Magnificent Seven” companies like Apple and Microsoft. Apple introduced new AI features at its Worldwide Developers Conference. Microsoft reported strong Q3 results, with 7% increase in Azure revenues from AI. Both stocks have a Zacks Rank #3 and A Momentum Score.

Microsoft is outperforming Apple in 2024, with a Zacks Rank #3 and a Growth Score of B. Apple is trading at a lower P/E ratio compared to Microsoft. Apple’s earnings are expected to grow by 7.3%, while its revenues are set to increase by 0.4%. Microsoft has an ABR of 1.13, with 35 Strong Buy recommendations.

Investors can bet on both Apple and Microsoft by including them in their portfolios. Apple has a strong ABR, cheap valuation, and new AI innovations. Microsoft is projected for above-average growth. ETFs like XLK, FTEC, VGT, and IYW have significant exposure to both Apple and Microsoft, offering investors a diversified way to tap into their growth potential.



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