3 Top Tech Stocks to Buy Right Now

2024 is shaping up to be another banner year for tech stocks.

After the Nasdaq Composite jumped 43% in 2023 with an even bigger gain in the Nasdaq-100, the Nasdaq Composite is up 9% in 2024 as the first quarter winds down.

The artificial intelligence boom is the main reason tech stocks are still soaring, but it’s not the only reason behind this sector’s booming gains. Keep reading to see three tech stocks that look like great buys right now.

Image source: Getty Images.

1. Microsoft

You don’t get points for originality in the stock market, and while Microsoft (NASDAQ: MSFT) may seem like one of the more obvious choices right now, that doesn’t make it a bad buy.

The tech giant has outfoxed its rivals and emerged as the software leader in AI, at least for now. By partnering with OpenAI, Microsoft has been able to add generative AI technology to a wide range of products, including its Azure cloud infrastructure service, GitHub code repository, and Office software suite, and those efforts are already paying off. Management said in the most recent quarter that six points of growth in Azure came from AI services, driving the overall category up 30%, which was much faster than Amazon Web Services.

Microsoft also just hired DeepMind co-founder Mustafa Suleyman from Alphabet, which seems likely to extend its lead in AI. Suleyman also co-founded Inflection AI, which recently folded; Microsoft hired most of its employees.

Additionally, no other tech giant has the diversification to capitalize on the opportunity in AI.

2. ACM Research

ACM Research (NASDAQ: ACMR) is a little-known, small-cap semiconductor company that makes highly specialized wafer-cleaning equipment. These machines play an essential role in semiconductor manufacturing.

The company sells mostly to customers in China, including Semiconductor Manufacturing International Corporation, which accounted for 16.5% of revenue last year.

Like other semiconductor stocks, ACM has started to see a tailwind from artificial intelligence. The company said that demand for its products was strong in the most recent quarter as it gained market share in the Chinese wafer fab equipment market.

Revenue was up 43% and profits surged as well, with adjusted net income more than doubling to $28.7 million. As demand for the advanced chips that artificial intelligence depends on increases, so should demand for ACM’s cleaning equipment.

Additionally, the stock is inexpensive, trading at a price-to-earnings ratio of just 18. This low entry point sets it up for further gains.

3. The Trade Desk

Finally, The Trade Desk (NASDAQ: TTD) is another great tech stock to buy right now.

The Trade Desk is the leading independent demand-side platform (DSP) in the adtech industry. The company provides a self-serve, cloud-based platform for ad agencies and brands to manage their ad campaigns, and it looks set to benefit from a number of trends this year.

First, the company is tapping into the power of AI with the launch of its new Kokai AI platform, which leverages deep learning algorithms throughout the digital media buying process, taking advantage of 13 million advertising impressions per second.

Additionally, The Trade Desk benefits from a recovery in the digital ad market after a lull in 2022 and 2023 on fears of a recession, meaning revenue growth should accelerate from secular tailwinds. Finally, The Trade Desk looks well-positioned to capitalize on Google Chrome’s phasing out of third-party cookies, which should help its alternate tracking solution, Unified ID 2.0 (UID2) gain market share. UID2 has already signed up some of the biggest advertisers in the world, including Disney and Procter & Gamble.

The Trade Desk is also growing rapidly and is highly profitable. The stock has a long track record of outperformance and that trend should continue in the coming years.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in ACM Research , Amazon, The Trade Desk, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, The Trade Desk, and Walt Disney. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

3 Top Tech Stocks to Buy Right Now was originally published by The Motley Fool