Here are my top 4 tech stocks to buy right now

By | February 24, 2024

While the market continues to post new all-time highs, there are many individual stocks worth buying at these prices. While some stocks may be overpriced, not all are. Right now I have four that I would definitely be taking a position on today. These are stocks that can drive the market forward as it continues to reach new levels.

1. Alphabet

Stands first Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Alphabet is currently the fourth largest American company. But no matter how big the company is, Alphabet’s activities continue to grow. In the fourth quarter, revenue rose 13% year over year to $86.3 billion, while operating margin grew from 24% to 27%.

Although Alphabet plays an important role in the field of artificial intelligence (AI), its main activity is advertising. Advertising has grown stronger as customers become more comfortable with the economic situation, helping Alphabet achieve success in the last quarter.

However, Alphabet’s stock doesn’t seem to get the same respect as other major tech companies Microsoft And Apple and is trading at a huge discount on a price-to-earnings basis.

GOOGL PE ratio (forward) chart

GOOGL PE ratio (forward) chart

If Alphabet achieved the same valuation as Microsoft, it would be a company valued at $2.9 trillion, surpassing Apple as the second largest company in the world. Eventually the market will wake up and understand this, causing Alphabet stock to rise. But as long as that’s not the case, it’s a great purchase.

2. Taiwanese semiconductor

Taiwanese semiconductor manufacturing (NYSE: TSM) is perhaps the most important company on earth for our digital society. It is the world’s largest contract chip manufacturer, producing advanced chips for companies such as Apple and… Nvidia.

Last year the chip industry experienced a downturn due to oversupply, but that trend may be over. In January, Taiwan Semiconductor’s revenue rose 7.9% year over year, suggesting growth may be returning to the chip giant.

Management expects to increase sales at a compound annual growth rate of 15 to 20% for “several years.” Based on this expected growth, the share looks very attractive.

3. UiPath

UiPath (NYSE: PAD) is a leader in Robotic Process Automation (RPA) software, which allows customers to automate repetitive tasks such as creating a report or completing an expense report. It also has multiple AI tools to expand the number of tasks it can automate.

UiPath has seen a lot of success lately, with annual recurring revenue increasing 24% to $1.38 billion in the third quarter of 2024 (ending October 31). But this is a drop in the bucket for the overall RPA market.

Polaris Market Research estimates that the RPA market opportunity will be worth approximately $2.66 billion in 2022, but will expand to $66 billion by 2032. That’s a huge expansion, and UiPath already has a significant foothold in this market.

Because its stock trades at just over 11 times revenue, it is attractively priced for a growing software company. UiPath is on my short list for a stock that could be a top player in the market over the next decade, and I think it’s a great buy now.

4. Metaplatforms

Last one is Metaplatforms (NASDAQ: META), the company formerly known as Facebook. Like Alphabet, Meta is primarily an advertising company on the various social media platforms. Although the advertising industry struggled in late 2022 and early 2023, it has recovered dramatically.

In the fourth quarter, Meta’s ad revenue rose 24% to $38.7 billion – a new all-time high. Improvements in this segment, along with the Reality Labs division, saw Meta return to peak levels of operating margins – something that was a major concern in late 2022 when they fell.

META operating margin (quarterly) chartMETA operating margin (quarterly) chart

META operating margin (quarterly) chart

Now that Meta is back on track and trading at an attractive 24 times forward earnings, it looks like a great stock to buy.

Should you invest €1,000 in Alphabet now?

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Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keithen Drury holds positions in Alphabet, Amazon, Meta Platforms, Taiwan Semiconductor Manufacturing and UiPath. The Motley Fool holds positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and UiPath. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.

Here are my top 4 tech stocks to buy now, originally published by The Motley Fool

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