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Finding the best tech stocks for any year is no easy task, as the technology sector can change rapidly. Anyone who has been buying individual stocks this year knows that artificial intelligence has been, but some of the top tech stocks from prior years rode similar uptrends before falling painfully back to earth.

So how do you separate the best tech stocks to buy now from the fad stocks trading on short-lived news trends? And how do today’s small technology stocks become tomorrow’s tech giants? Read on, and I’ll discuss that, and give you an overview of the best tech stocks for 2024.

Disclaimer: This article does not constitute individualized investment advice. These securities appear for your consideration and not as investment recommendations. Act at your own discretion.

Why Invest in the Tech Sector?


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Many investors are interested in top tech stocks for good reason. Disruptive technologies can sometimes lead to dramatic revenue growth, and dramatic gains in a firm’s stock price as a result.

In fact, technology companies sometimes chase that revenue growth for years without ever focusing on bottom-line profits. Some of the best-performing tech (and “tech-esque”) stocks in history include Amazon.com (AMZN) and Tesla (TSLA), which both prioritized ramping up their long-term scale over short-term profitability.

And look where they are now. Both are among the biggest companies on the planet, outperforming the market by wide margins over the last several years.

This is why many investors look for growth stocks within the tech sector and tech-adjacent companies. It’s not for the short-term profits or dividends, but rather the hopes of a “moonshot” stock that grows exponential revenue growth in short order, delivering life-changing profits to its investors in the process.

The Best Tech Stocks to Invest In


Some of the best-performing tech stocks are very recognizable names. But before you buy any of them, don’t forget that investing is fundamentally about the future. That means learning about the product pipeline and R&D beyond what’s on the surface.

Leading tech firms are often the parent company of lesser-known products or services that could be just as interesting. Particularly when it comes to entrenched mega-cap tech stocks, their future potential depends on revenue streams that have yet to be fully realized yet—not the big-name products consumers currently use.

Best Tech Stock #1: Accenture


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  • Market capitalization: $245.5 billion
  • Dividend yield: 1.4%
  • Industry: IT services and consulting

Professional services specialist Accenture (ACN) has made a name for itself by providing “DevOps” blueprints to top companies around the world. This unique approach involves high technological improvements such as custom software development, systems upgrades, and data migration to ultimately provide improved service and efficiencies across complex organizations.

Whether it’s helping a firm get smarter about its customers through data analytics and artificial intelligence or simply consulting on how to trim the IT fat after a complex acquisition, Accenture is a firm that the biggest brands in the world turn to to solve their tech problems. And with a recently announced team-up with Amazon to provide generative AI solutions to clients, Accenture is working hard to ensure it has the right tools for the future as well as for today.

“ACN will be a meaningful long-term beneficiary from AI deployments given its scale, its global footprint and its ability to reskill around change at scale better than any other industry participant,” say Stifel equity analysts, who rate the company at Buy.

Related: 19 Best Investment Apps and Platforms [Free + Paid]

Best Tech Stock #2: Adobe


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  • Market capitalization: $273 billion
  • Dividend yield: N/A
  • Industry: Enterprise software

Creative software and services firm Adobe (ADBE) is the go-to platform for photographers, marketing directors, educators, publishers, and just about anyone who uses visuals to tell a story.

The stock continues to set new 52-week highs like clockwork and surged almost 80% in 2023 thanks to strong financials, including projected revenue growth of more than 10% both this fiscal year and next year, too.

With loyal customers and long-term certainty thanks to subscription-based revenue rather than one-off product sales, ADBE is a growth-oriented tech stock to consider for 2024 and beyond. As proof of the fact Adobe is looking to the future, it has invested heavily in “Firefly” artificial intelligence tools that continue to cause a buzz about the potential for computer assisted design in the 21st century.

Also worth keeping an eye on is a major piece of merger activity. “The pending $20b acquisition of Figma, a cloud-based provider of design collaboration apps, holds significant upside potential, but is also expensive and under regulatory scrutiny,” says CFRA analyst John Freeman, who rates ADBE shares at Buy.

Related: 7 Best Value Stocks to Buy for 2024

Best Tech Stock #3: ASE Technology


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  • Market capitalization: $20.5 billion
  • Dividend yield: 6.4%
  • Industry: Semiconductor manufacturing

Taiwan-based semiconductor firm ASE Technology (ASX) is not a design shop, but a manufacturer of third-party chips. Providing only the packaging, testing, and manufacturing isn’t as high-margin of a business, but does offer consistent income—as evidenced by a yield that is more than quadruple the typical S&P 500 component, thanks to incredibly consistent revenue and large customers with long-term relationships.

Thanks to increasing demand for chips in the world, ASE is one of the best-performing stocks in the sector with gains of about 35% in 2023. It’s also projecting double-digit revenue growth for FY2024.

Related: 21 Best Stock Research & Analysis Apps, Tools and Sites

Best Tech Stock #4: Microsoft


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  • Market capitalization: $3.0 trillion
  • Dividend yield: 0.7%
  • Industry: Enterprise software

Microsoft (MSFT) is a dominant tech stock that has seen amazing growth over the past few decades. But despite that, as well as a more than $3 trillion market cap, MSFT still shows no signs of slowing down.

The average person knows Microsoft for its iconic Windows and Office productivity software for personal computers, as well as its Xbox gaming console and related software (which is only getting more dominant after a nearly $70 billion deal to acquire game studio Activision Blizzard [ATVI]).

But Microsoft also is a major player in cloud computing, via its still-growing Azure cloud services. Throw in the departure of key OpenAI artificial intelligence staff to join Microsoft and are many paths forward to additional growth for MSFT in the years ahead.

Revenue growth projections for the next fiscal year are currently around 14%, proving that this dominant tech stock can indeed keep getting bigger and delivering profits for its shareholders.

While most analyst firms already cover Microsoft, Truist joined the fray in late 2023—and are plenty optimistic. “We are initiating coverage of MSFT with a Buy rating and three-year price target of $600 [62% upside from current prices]. In a year when shares of the software behemoth have risen by over 50%, we expect many investors to be wondering where the upside potential is from here. Though their early execution in the generative AI market has been impressive, we believe that MSFT is poised to deliver further upside to expectations as projects go into production.”

Related: 7 Best Stock Portfolio Management Software Tools + Apps

Best Tech Stock #5: Palo Alto Networks


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  • Market capitalization: $115.8 billion
  • Dividend yield: N/A
  • Industry: Cybersecurity

In an age of persistent cybersecurity and hacking concerns, Palo Alto Networks (PANW) stands out as a company with both a reliable customer base as well as the near certainty of increased revenue coming its way across the coming years.

As proof, consider PANW is projecting nearly 20% revenue growth this fiscal year and nearly 20% next year, too.

“Deal activity is starting to strengthen into 2024 and we believe PANW is incrementally well positioned to gain more market share in the cyber landscape looking ahead,” say Wedbush analysts, who rate PANW shares at Outperform. “We also believe the recent SEC guidelines [are] a potential game changer for public companies and could be a major benefit for PANW in 2024.”

From malware prevention to network firewalls to workforce education, Palo Alto is at the center of the 21st century cybersecurity revolution. It’s perhaps no wonder shares have more than doubled in 2023.

Related: 11 Best Stock Screeners & Stock Scanners

Best Tech Stock #6: Paymentus Holdings


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  • Market capitalization: $2.0 billion
  • Dividend yield: N/A
  • Industry: Electronic payments

Charlotte-based Paymentus Holdings (PAY) is a technology company that provides electronic billing and payment services platforms. Though the smallest tech stock on this list, it also has some of the most impressive revenue growth metrics of the group.

Payment infrastructure continues to evolve in a digital age, and PAY is a tech stock at the center of this megatrend. It currently is on pace to book more than $600 billion in revenue this fiscal year—well more than double its full-year 2019 revenue. What’s more, the pros are predicting 20% revenue growth for PAY in fiscal 2024.

While Wedbush analysts have the stock at Neutral, they note plenty of growth potential going forward: “The company continues focusing on converting its strong backlog, ramping several large clients across various verticals during the quarter, including a wholesale B2B entity, a healthcare company, multiple insurance companies, multiple financial institutions, and multiple government agencies,” they say.

Related: 9 Best Stock Portfolio Tracking Apps [Stock Portfolio Trackers]

Best Tech Stock #7: Salesforce


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  • Market capitalization: $278.3 billion
  • Dividend yield: N/A
  • Industry: Enterprise software

So-called “customer relationship management” software helps marketing and sales staff make the most of their prospects.

And as you can probably tell by the ticker, Salesforce (CRM) is the world leader in CRM tools with a customer base of more than 150,000 companies that it helps to increase productivity, customer loyalty, and sales revenue. Salesforce stock was pacing to roughly double in 2023 thanks in part to strong earnings, as well as double-digit revenue growth projections for 2024.

“We believe CRM is balancing costs/revenue growth extremely well and are encouraged by monetization of AI initiatives,” says CFRA analyst Angelo Zino, who rates CRM shares at Strong Buy.

What’s more, the company earmarked an additional $10 billion for stock buybacks earlier in 2023, showing a long-term commitment to protecting shareholder value by reducing its share count.

Related: 12 Best Stock Chat Rooms, Message Boards + Forums

Best Tech Stock #8: Shopify


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  • Market capitalization: $101.6 billion
  • Dividend yield: N/A
  • Industry: E-commerce

Shopify (SHOP) is an e-commerce infrastructure company that helps small and mid-sized businesses market and sell products through various digital sales channels. The basics include web and mobile storefronts, but SHOP also supports “omnichannel” integration with brick and mortar locations to manage inventory, as well as analytics and reporting to maximize profitability and customer loyalty.

This tech stock has more than doubled in 2023 thanks to expectations for continued growth and success. Shopify is projected to finish 2023 with roughly 20% revenue growth, and 2024 estimates look similar.

“We believe Shopify has some more cards up its sleeve,” say William Blair analysts, who rate the stock at Outperform. Among those cards? Numerous product and go-to-market investments, product expansion from the past years finally hitting the company’s take-rate, and clear management signaling that recent margin expansion is here to stay.

We all know the potential of e-commerce thanks to the success of Amazon. But SHOP is concerned with every other merchant out there that also has the potential to reach new customers in a digital age.

Related: 7 Best Stock Recommendation Services [Stock Tips + Picks]

Best Tech Stock #9: Vertex


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  • Market capitalization: $4.0 billion
  • Dividend yield: N/A
  • Industry: E-commerce

Vertex (VERX) is a budgeting and tax technology specialist that serves a host of industries ranging from retail to communication to manufacturing firms worldwide. It offers specialized software and cloud-based solutions that assists with tax determination, compliance and reporting that is far more sophisticated than your typical e-filing software.

The company continues to grow steadily, with roughly 15% in projected revenue growth in fiscal 2023, followed by 13% growth again next fiscal year. Even more impressive was that in its latest quarter, VERX reported annual recurring revenue up about 18% year-over-year, building a strong foundation for the future with locked-in and loyal customers.

Morgan Stanley analyst Chris Quintero rates VERX at Overweight and calls the stock one of his favorite “SMID-cap” ideas right now. “The key growth initiatives around product development and go-to-market partnerships are bearing fruit as they are driving new customer wins and expansions,” he says.

Related: Best TurboTax Alternatives [Tax Software Like TurboTax]

Invest in Tech Stocks With Plynk Invest


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  • Available: Sign up here
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Plynk is an app designed to help you start investing and learn along the way, and they’re currently offering a $10 account sign-up and $75 net deposit bonus ($85 combined).

The Plynk app helps investors put their money into an investment portfolio. You can invest with as little as $1, and trade stocks, funds, and crypto commission-free**—all in one app. The platform uses straightforward, easy-to-understand language to explain investing concepts. No jargon. No complex charts and tables. Just simple-language tips and how-tos.

Navigate investment ideas with tools to help you explore and choose. With Plynk Explore, just answer a few questions, and the app will display stock, ETF, and mutual fund investments that mesh with your investment comfort zone.

If this sounds interesting to you, consider opening an account with Plynk. To make it more worth your while, they have a few special offers.

Simply open an account and link your bank account to get a $10 sign-up bonus. Plynk is also offering a special bonus promotion through Feb. 15, 2024. For a limited time, make a deposit and Plynk will double it up to $75. Customers must have a minimum of $25 in net deposits during the promotional period to receive a match. That means you may be eligible for up to $85 in sign-up bonuses from Plynk by taking qualifying actions.

 

Tech Stocks: Frequently Asked Questions (FAQs)


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Is technology the best sector in the stock market?

Technology stocks regularly are among the best-performing stocks on Wall Street, and they historically beat the broader S&P 500 index. But that should not be misunderstood to mean that the tech sector is a sure thing. According to Pensions & Investments, the technology sector slumped -28.2% in 2022—more than 10 percentage points worse than the broader market.

In other words, there are lots of reasons to like technology stocks and the tech sector. But there’s no such thing as a sure thing when it comes to investing.

Are there any downsides to investing in tech companies?

Many tech companies can be quite volatile as they pursue their long-term potential, often at the cost of short-term profits—or even short-term stock performance. One of the most common downsides of investing in tech stocks is that they can move up and down much more dramatically than sleepy sectors such as utility stocks or consumer staples.

That’s also what makes them popular stocks to buy, however. Those big moves are great when they are in an investor’s favor. Just be aware that the big downside of investing in tech companies is … well, the potential for bigger downsides.

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Disclosures


Plynk Disclaimer

Fees apply to individual crypto trades.

Minimum $10 gift card balance required. Fees apply to use program which vary by vendor. To receive Plynk Net Deposit Match Promotion, customers must have a minimum of $25 in net deposits during the promotional period. Limited time offer. Terms and conditions apply. Visit plynkinvest.com/disclosures/promotions. Recurring investments do not ensure a profit or protect against loss.

The Plynk® app provides access to two different types of accounts, brokerage and crypto. Brokerage accounts and related information and services are provided by Digital Brokerage Services LLC (DBS). Crypto accounts and related information and services are provided by Paxos Trust Company (Paxos), a New York State-Chartered limited liability trust company (NMLS #1766787). Crypto is volatile and speculative, and investments should not exceed amounts you are willing to lose.

Get started with the Plynk app for free. Some features may require a monthly fee in the future. Learn more (https://www.plynkinvest.com/disclosures/fee-schedule/).

Commission-free applies to U.S. equity trades, exchange-traded funds (ETFs), and Mutual Funds (MFs) for Digital Brokerage Services LLC (DBS) retail clients. Expenses charged by investments, interest charges, or other expenses for transactions still apply. See https://www.plynkinvest.com/disclosures/fee-schedule/ for details. Separate fees for crypto apply. See https://www.plynkinvest.com/disclosures/crypto-fee-schedule/ for details.

Jeff Reeves is a veteran journalist with extensive capital markets experience, Jeff has written about the investing world since 2008. His work has appeared in numerous respected finance outlets, including CNBC, the Fox Business Network, the Wall Street Journal digital network, USA Today and CNN Money.

Jeff began his career in print, working at local newspapers in Virginia, Ohio, Arizona and North Carolina. In 2008, he joined InvestorPlace Media to edit monthly stock advisory newsletters and ultimately lead its digital news service for individual investors.