Best Tech Stocks To Buy in October 2024

Viorika / Getty Images/iStockphoto

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

It’s no secret that tech stocks are volatile in nature. After getting demolished in 2022, tech stocks bounced back strongly in 2023 and into 2024. While some stocks have likely gotten ahead of themselves over the near term, analysts and investors alike see big things ahead for tech over the long run.

Whether you’re new to tech investing or looking to build on your existing positions, here’s a look at some of the best tech stocks you can buy now.

What Are the Best Tech Stocks To Buy Now?

The following are some of the best tech stocks to consider for your portfolio.

The Fallen Giant

Slowed growth in demand for electric vehicles has hit one tech stock especially hard.

1. Tesla (TSLA)

• Price: $260.46
• Market Cap: $832.08 billion

If you’re looking for a tech stock that has been clobbered rather than one that is up over 100% in the past year, look no further than Tesla. The former Wall Street darling has been hammered on a combination of price cuts, falling EV demand and a bad Chinese economy. But believers see big gains still ahead for the stock, and their optimism appears to be paying off. Until recently, shares were down year-to-date and over the past year. Now, they’re up 4.82% YTD and 6.99% over the past year, making Tesla one of the best long-term tech stocks to consider for your portfolio.

The AI Revolution

These companies are at the forefront of artificial intelligence.

2. Nvidia (NVDA)

• Price: $121.40
• Market Cap: $2.98 trillion

Nvidia is the world’s biggest manufacturer of graphical processing units, and it is the poster child for the AI-related stock frenzy. The incredible stock — which is now the third-largest in the entire S&P 500 — has returned 189.75%, 450.74% and 2,651.56% over the past one, three and five years, respectively. Still, more than half the analysts watching the stock rate it a “buy” or “strong buy.”

3. Meta Platforms (META)

• Price: $567.36
• Market Cap: $1.44 trillion

Meta Platforms, formerly Facebook, has been enjoying a recent surge due in part to its AI ambitions. The stock’s up 89.78% over the past year and 60.29% year to date. Of the 64 analysts following the stock, 56 have “buy” or “strong buy” ratings on it.

Make your money work for you

Get the latest news on investing, money, and more with our free newsletter.

Submit

By subscribing, you agree to our Terms of Use and Privacy Policy. Unsubscribe at any time.

Thanks!

You're now subscribed to our newsletter. Check your inbox for more details.

4. Apple (AAPL)

• Price: $227.79
• Market Cap: $3.46 trillion

Apple and Microsoft regularly swap places as the world’s largest corporation by market cap, but as of Sept. 28, Apple is back on top. Apple isn’t just one of the best technology stocks — The company has an immense pull over the stock market as a whole. Though truly a consumer products company, with a cult-like following that any company would love to have, Apple remains a tech leader in terms of its innovation. Its next step is the world of AI. Thirty-two of the 38 analysts following Apple have a “buy” or “strong buy” rating on the company.

Data Storage and Digital Security

These vital industries are less appealing than other areas of technology, which is why some investors overlook them.

5. Western Digital (WDC)

• Price: $69.42
• Market Cap: $23.84 billion

Western Digital is a staple in the world of data storage, including hard drives and solid-state drives. Its consensus rating from 29 analysts in September is buy, with a target almost 26% above current levels.

6. Crowdstrike Holdings (CRWD)

• Price: $285.86
• Market Cap: $70.07 billion

With the ever-evolving threat of cyber attacks, security has never been more important. Crowdstrike is a leader in endpoint security solutions to monitor and block attacks on networks. The stock is up 11.96% YTD, but analysts still see gains ahead. The average 12-month price target is $325.14, and 42 of 51 analysts watching the stock in September rated it a “buy” or “strong buy.”

The Backbone of the Internet

These companies provide vital connectivity hardware or services that keep the internet up and running.

7. Alphabet (GOOGL)

• Price: $163.95
• Market Cap: $2.03 trillion

If it has to do with technology, Silicon Valley giant Alphabet likely has a hand in it. In addition to its world-leading search engine, Alphabet, formerly known as Google, owns Android, YouTube, Waymo, Chrome and a host of consumer products, from the Google Nest line of smart products to Pixel phones and more.

Still, advertising is the cornerstone of Alphabet’s success, comprising a whopping 77.8% of its revenue in 2023. Thirty-eight of the 43 analysts tracking the stock in September have a “buy” or “strong buy” rating on it, with an average price target of $201.46. That’s about 23% above current levels.

8. Qualcomm (QCOM)

• Price: $170.13
• Market Cap: $189.53 billion

Qualcomm dubs itself “the world’s leading wireless technology innovator,” as a developer of chipsets, platforms, tools and other products. The company is most noted for its Snapdragon processor for high-tech devices like smartphones, but it’s also knee-deep in the AI revolution, developing chips for smart vehicles, factories and more.

9. Taiwan Semiconductor Manufacturing Company (TSM)

• Price: $177.97
• Market Cap: $922.97 billion

TSM was the first and is still the largest creator of chips in the world, currently producing over 60% of the world’s chips. Analysts currently have an overall hold rating on the stock, but that’s because it has ramped up so dramatically over the past year and YTD periods — 111.14% and 71.13%, respectively.

Mid-Cap Tech Winners

Mid-cap tech companies have plenty of room for growth.

10. Zeta Global Holdings (ZETA)

• Price: $29.51
• Market Cap: $6.8 billion

If you’re looking for a mid-cap stock instead of a mega-cap company with a $3 trillion valuation, check out Zeta Global Holdings. After a few years of trading more or less sideways, Zeta Global has broken out, rising over 272% over the past year, making it one of the best mid-cap tech stocks to consider this year. Twelve of the 13 analysts following the stock in August had a “strong buy” or “buy” rating on it, with an average price target about 6% above current levels.

What Is Considered a Tech Stock?

Any company that sells products or services in the technology sector is considered a tech stock. It’s a big sector, so there are a lot of companies to choose from. However, there are three primary subsectors within the technology industry: software and services, hardware and equipment, and semiconductors and semiconductor equipment.

Software and Services

Software and services companies primarily develop programs that can help various industries operate their products. For example, AI, streaming, cloud, social media and cybersecurity companies all rely on software and services in order to fulfill their mission.

Hardware and Equipment

Hardware and equipment are the actual physical, tangible products of the technology world. Everything from laptop computers to servers, monitors, printers, RAM, motherboards and power supplies are considered hardware and equipment in the technology world.

Semiconductors and Semiconductor Equipment

Semiconductors are substances that lie between conductors and insulators in terms of electrical conductivity. Typically made of silicon or germanium, they function as critical components in nearly all modern electronic devices, from smartphones and TVs to computers, video games and advanced medical equipment.

Semiconductor equipment refers to almost anything used in the fabrication of actual semiconductors. Each of these sub-industries is essential to modern technological development, including artificial intelligence.

Pros and Cons of Tech Stocks

The main pro of investing in tech stocks is that they tend to show above-average growth. To some degree, technology is cyclical, and tech shares can suffer large losses over the short run — that’s why even the best small cap tech stocks are quite risky. Over time, however, the big tech winners have proven to be huge generators of wealth.

On the other hand, investing in tech stocks is not for everyone. Most tech stocks, especially the high-growth ones, can be extremely volatile. If you have a low risk tolerance, you may not be able to handle the big swings that tech stocks can have, and you might end up selling out with a big loss. If you pick the wrong tech stocks, you might lose money over the long run as better-positioned companies drive them out of business.

Alternative Ways To Invest in Tech Stocks

If you don’t feel comfortable picking individual tech stocks, you can invest in exchange-traded funds or traditional mutual funds.

ETFs are portfolios of stocks that trade on the exchange, like a stock, meaning you can buy or sell them any time the market is open. Most passively track large indexes, such as the Philadelphia Semiconductor Index, so you get exposure to a number of players in the industry in a single investment.

The same is true with traditional mutual funds, although these tend to be actively managed by professional money managers who pick individual stocks on your behalf.

Final Take

Technology stocks can be solid long-term investments. The products and services they provide keep businesses running and have become irreplaceable in most people’s day-to-day lives. Despite the inherent volatility that you’ll have to endure, this sector will continue to innovate and their stocks should provide solid returns over the long run.

Monica White, Karen Doyle and Daria Uhlig contributed to the reporting for this article.

Stock pricing is accurate as of market closing on Sept. 27, 2024. Information is subject to change.

Share This Article: