Big Tech Stock Predictions for 2024: Winners and Losers

There are multiple suggestions on the best tech stocks to invest in 2024. From wearable tech and biotech stocks to the more traditional banking and fintech investments, there is something for everyone.

In this article, Techopedia reflects on the events and trends of the last twelve months and explores the most recent Big Tech stock predictions in 2024 by analyzing the “Magnificent Seven” and emerging trends in AI and cryptocurrency.

Key Takeaways

  • Big Tech stocks moved beyond FAANG (Facebook, Apple, Amazon, Netflix, Google) and welcomed Microsoft, Tesla, and NVIDIA to their ranks.
  • AI became the new sheriff in town, and the “Magnificent Seven” is now leading the way.
  • The Nasdaq-100 tech sector index soared by 53% in 2023 and continues reaching new highs at the beginning of 2024.

The Magnificent Seven Ride

The supergroup retained four original FAANG members and expanded by including Microsoft, Tesla, and the chip-making giant NVIDIA. But NVIDIA (NVDA) emerged as a powerhouse, with its stock soaring by a staggering 216.65% over the past 12 months as of 18 January 2024. This surge highlighted NVIDIA’s pivotal role in the tech industry and underscored the growing importance of advanced semiconductor technology in various industries.

Meta Platforms (META) also charted an impressive course, witnessing its stock value rise by 172.14% despite the widely perceived failure of its Metaverse ambitions.

The story of the stock market in 2023, however, was not exclusive to these tech titans. Companies like Uber Technologies, Builders Firstsource, and even entities outside the tech sphere, like Royal Caribbean Group, posted noteworthy gains.

As the Super Seven ride into 2024, what are the latest tech stock predictions amidst a globally shifting economic landscape?

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A chart detailing the 1-year stock performance of the Magnificent Seven

Source: TradingView, as of 18 January 2024

The Future of Tech Stocks: AI Leaders, Challengers, and Trends

An image of Greg Halter
Greg Halter

Greg Halter , the Director of Research at Carnegie Investment Counsel, also ponders the future of AI and its influence on the big tech players who appear to be propping the Fortune 500.

Giving a tech stock forecast for 2024, he said:

“Unquestionably, AI will impact companies such as Apple, Microsoft, Alphabet, Amazon, NVIDIA, Meta Platforms, Tesla, Salesforce, Advanced Micro Devices, and Intel.”

The only question is to what extent will the perceived leaders, such as NVIDIA, Microsoft, and Alphabet, widen their lead, or will some other players catch up?

“We cannot forget that AI is not new; it has been around for decades. What is new is that the industry has reached a ‘tipping point’ where adoption is gaining steam, and use cases are now growing exponentially.”

Halter also believes that the leaders will continue to exploit their size and grow.

On the other hand, we have seen numerous technological developments over the years where the early leaders did not end up being the current leaders (e.g., Smartphones -> Blackberry; Social Media -> Myspace; Internet Service Providers -> AOL).

A factor that could derail, or at least slow down development, is regulation, which is a significant variable. However, the longer it takes for any potential regulation to come to fruition, the further along the companies and their efforts.

Analysts’ Consensus Big Tech Stock Forecasts for 2024

According to the consensus analyst ratings compiled by MarketBeat, as of 19 January 2024, the “Magnificent Seven” will mostly hold their current positions in the next 12 months, with a moderate uprise potential. However, they do not forecast major price surges.

Stock Number of Analysts Consensus Rating Average Price Target Price change %
Apple (AAPL) stock price prediction 36 Moderate Buy $201.14 +6.63%
Amazon (AMZN) stock price prediction 42 Buy $175.98 +14.64%
Meta Platforms (META) stock price predictions 50 Moderate Buy $360.75 -4.09%
Alphabet (GOOGL) stock price prediction 34 Moderate Buy $149.50 +4.20%
Tesla (TSLA) stock price prediction 33 Hold $232.97 +9.95%
NVIDIA (NVDA) stock price prediction 38 Moderate Buy $601.46 +5.32%
Microsoft (MSFT) stock price prediction 40 Moderate Buy $400.00 +1.56%

A 2024 Tech Stock Forecast from Qraft Technologies

How can AI impact stock picks?

An image of Weldon Rice
Weldon Rice

Weldon Rice, the Head of AI ETFs at Qraft Technologies, emphasizes that 2023 was a landmark year for AI-driven market strategies. But what does this mean for investments in big tech stocks in 2024?

“AI played a pivotal role in the markets in 2023, with Qraft’s AI choosing many companies leading the way in AI in its portfolios. With the S&P 500 closing at all-time highs at the end of the year, AI stocks look poised to do well this year.”

With that in mind, here is how Qraft sees companies poised to continue to ride the tailwinds of AI adoption.

Top Picks

“Apple, Google, Microsoft, Amazon, NVIDIA, and Meta all have the AI’s highest conviction, not only among AI stocks but among all stocks overall. This is unsurprising as all the companies either have the software capabilities and user base to commercialize AI or offer the chips necessary to run the models. Our AI may see both the market valuing these companies higher and the quality of their cashflows, making them an attractive pick in 2024”, Rice said.

Low Conviction

However, Qraft sees less conviction in stocks like Salesforce, Intel, Tesla, and Advanced Micro Devices:

“While these companies will undoubtedly play a role in the AI arms race, many have either part or much of their business outside of AI. For example, Advanced Micro Devices has around 51% of its revenue coming from personal computer chips rather than from chips made for AI models. Contrast that with NVIDIA, which gets around 80% of its revenue from chips for AI models, making it better positioned to take advantage of growth in AI use. The model focuses on the quality of earnings, making stocks like Tesla less attractive as its car orders can heavily impact earnings,” Rice said.

“Qraft leverages the power of AI to navigate the market actively. Our holdings are updated monthly, adjusting as the market changes. The above assets are the convictions from our flagship AI model that selects stocks for QRFT, the Qraft AI-enhanced Large Cap ETF, currently performing around 1.4% annually over the S&P 500 tracking ETF, SPY,” Rice added.

AI is ‘A Multi-Trillion-Dollar Market Opportunity’

An image of David Kass
David Kass

David Kass, a finance professor at the University of Maryland’s Robert H. Smith School of Business, offers his expert tech stock analysis and predictions. Kass provides a compelling outlook for tech stocks in an environment with lower interest rates and rapid advancements in AI.

“The outlook for tech stocks in 2024 is very bright. A combination of lower interest rates expected during the year and continued progress in these companies’ development and application of artificial intelligence (AI) should propel their shares higher.

“So far in 2024, five of the super seven are already substantially outperforming the major indexes. Those five are: NVIDIA (+10.5%), Meta Platforms (+5.8%), Microsoft (+3.3%), Alphabet (+2.1%), and Amazon (+1.8%). Two components have declined: Apple (-3.4%) and Tesla (-11.9%). Salesforce (3.5%) has also outperformed the market year-to-date, but Advanced Micro Devices (-0.6%) and Intel (-6.2%) have underperformed in 2024. However, these companies will likely achieve significant earnings growth in 2024.

“AI is a multi-trillion-dollar market opportunity in which the tech stocks mentioned here are expected to be among the key players. My predictions for individual tech stocks in 2024 include the outperformance by NVIDIA, Alphabet, Amazon, Meta Platforms, Microsoft, Apple, Salesforce, and Advanced Micro Devices. However, I am somewhat less optimistic concerning Tesla and Intel.”

Defence Giant BAE Systems is 2023’s Most Searched FTSE 100 Stock

BAE Systems (BA.) emerged as the most searched FTSE 100 stock in the UK last year, reflecting heightened investor interest. According to Investing Reviews’ analysis of Google search data, BAE Systems garnered an impressive 961,349 average monthly searches.

Simon Jones, CEO of Investing Reviews, said knowing which stocks generate interest is always helpful, as it may provide insight into which stocks may experience higher trading volumes and price swings.

“BAE Systems has the most searched FTSE 100 stock in 2023 and is the most searched stock in 20 out of 58 of the surveyed UK locales. This stands to reason, as BAE Systems’ stock has experienced a significant increase in price since the Russian invasion of Ukraine, which began in February 2022. This is due to BAE Systems being one of the UK’s primary defense companies, who have also produced a large part of the equipment the UK has given Ukraine in military aid.”

The Rise of Crypto in 2024: Outshining Big Tech Stocks

In 2023, the Magnificent Seven soared by 75%, comprising about 30% of the S&P 500. However, will other tech stocks recover and keep pace with the leaders? In stark contrast, the remaining 493 companies largely stagnated, struggling to emulate their tech counterparts’ extraordinary success and market impact. This divide underscores the growing dominance of big tech in the stock market.

Many believe that crypto winter is nearly over and will offer the most significant returns in 2024.

An image of Nathan Leung
Nathan Leung

Nathan Leung, a crypto educator and lead content creator at Cryptonauts, a YouTube platform that covers blockchain and cryptocurrencies, predicts that crypto has the potential to outshine some of the biggest tech stocks.

“Stock market and crypto investors alike are optimistic about the market behavior in 2024. However, this special year for crypto could outpace the stock market. The first-ever Bitcoin ETF was approved in January and is already trading live. This attracts attention and builds trust for new investors.

“We also have the Bitcoin halving, which historically kicks off the bull market cycle. It will be an exciting year, but always remember to do your research and take profits,” Leung said.

The Bottom Line

The Nasdaq-100 Index soared by 53% in 2023, making it one of the best performances in two decades. But there is no escaping the fact that the “Magnificent Seven” form just a fraction of the tech stocks, and other companies showed less optimistic results.

2024 began with the concept of “AI Everywhere,” spreading like wildfire across the show floors of CES and the live trading of the first-ever Bitcoin ETF. These early trends suggest that it will be another massive year for tech investments.

However, investing only in the Big Tech stocks might not yield the expected returns, and this could push investors toward the quick returns offered in the volatile crypto world.

However, before making any investment decisions on whether to invest in Big Tech stocks or crypto in 2024, traders should perform a thorough fundamental and technical analysis of the stocks or cryptocurrencies they are interested in. However accurate the tech stock predictions might be, note that stock markets are prone to increased volatility.

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Neil C. Hughes

Neil is a freelance tech journalist with over two decades of IT experience. Celebrated as one of LinkedIn's Top Voices in technology and recognized by CIO Magazine and ZDNet for his influential insights, Neil has contributed to publications like INC, TNW, TechHQ, and Cybernews while also hosting the popular Tech Talks Daily Podcast.