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Some top tech stocks are known for their value, growth, and momentum.
Tech stocks have kicked off 2024 with a solid performance, boosted by optimism about potential rate cuts from the Federal Reserve and positive quarterly reports from key companies in the sector.
As more companies adopt AI technology, tech firms want to grow and reach new customers. Investors are keeping a close eye on this sector, hoping that the strong performance from last year will continue. A useful measure for tech companies is the Technology Select Sector SPDR Fund (XLK), an exchange-traded fund (ETF), which has increased by 51.7% in the past year, outperforming the Russell 1000 Index’s 20.8% growth.
Here’s a breakdown of the top tech stocks for February 2024, selected based on their value, growth speed, and momentum. All information is up-to-date as of January 24, 2024.
Best Value Tech Stocks
Value investing is a strategy where investors look for stocks that are priced lower than they should be. These undervalued stocks could become more valuable when the market fixes this mistake. Investors usually find these stocks by looking at basic measures like the price-to-earnings (P/E) ratio. A lower P/E ratio usually means a stock is undervalued because the company is worth more than its current price. These stocks might give better returns when the market corrects itself.
Best Value Tech Stocks
| Price ($) | Market Capitalization (Market Cap) ($M) | 12-Month Trailing P/E Ratio | |
| Yiren Digital Ltd. (YRD) is a company. | 4.75 | 384.0 | 1.5 |
| Sound Group Inc. (SOGP) is a corporation. | 2.80 | 14.5 | 2.7 |
| AGM Group Holdings Inc. (AGMH) is a company. | 1.66 | 43.7 | 3.1 |
- Yiren Digital Ltd: Yiren Digital is a Chinese fintech company that operates a financial marketplace that connects people who need to borrow money with investors. It offers loans, payment processing, and insurance products.
- Sound Group Inc., previously called Lizhi, is an entertainment company based in China that specializes in audio content. It offers podcasts and similar products through various apps like LIZHI, LIZHI Podcast, and Tiya. In late January, the company changed its name to Sound Group Inc. and its ticker symbol on the Nasdaq Capital Market to SOGP.
- AGM Group Holdings Inc. is a Hong Kong-based blockchain technology company. It specializes in developing chips for blockchain applications and provides solutions for futures trading and foreign exchange trading services.
Fastest-Growing Tech Stocks
AGM Group Holdings Inc. is based in Hong Kong and focuses on blockchain technology. They are experts in creating chips for blockchain use and offer solutions for futures trading and foreign exchange services.
Investopedia uses a two-part method to evaluate growth companies more accurately. We give equal importance to the percentage growth in earnings per share (EPS) and revenue compared to the previous year. This helps minimize the influence of one-time unusual events and gives a clearer picture of a company’s growth trend and potential. Also, we don’t consider companies with quarterly growth rates exceeding 1,000% to avoid including extreme outliers.
- GRAVITY Co. Ltd: is a software company from South Korea specializing in making online and mobile games. One of their most famous games is Ragnarok Online. The company’s stock has increased by over 40% in the past year.
- Open Text Corp: Open Text Corp. is a Canadian company that develops software for managing business information. They provide solutions for customer experience management, discovery, and artificial intelligence. Recently, they introduced their Cloud Editions 24.1 product, which includes several AI features.
- Nubeva Technologies Ltd: Text Corp. is a Canadian company that develops software for managing business information. They provide solutions for customer experience management, discovery, and artificial intelligence. Recently, they introduced their Cloud Editions 24.1 product, which includes several AI features.
Tech Stocks With the Most Momentum
Momentum investing is a tactic to benefit from ongoing market trends by choosing stocks that have performed better than others or the overall market. This strategy believes that stocks on a rising trend will likely keep doing well if the core aspects of the business, industry, or sector remain unchanged.
Due to frequent market changes, momentum investing is a popular approach for tech stocks. When companies introduce new products, make technological advancements, or rapidly gain popularity, investors can join in while these stocks are still rising.
Here are the top-performing tech stocks over the past year. We’ve excluded stocks priced under a dollar.
| Price ($) | Market Cap ($B) | 12-Month Trailing Total Return (%) | |
| Fang Holdings Ltd. (SFUNY) | 6.00 | 0.04 | 900.0 |
| AppLovin Corp. (APP) | 43.31 | 14.5 | 265.8 |
| Crexendo Inc. (CXDO) | 6.32 | 0.2 | 251.1 |
- Fang Holdings Ltd. is a tech company based in China that operates an online real estate platform. It offers marketing, listing, lead generation, and financial services for China’s real estate and home improvement markets.
- AppLovin Corp. develops games and provides mobile analytics, marketing, and development platforms. It manages platforms like Lion Studios, SparkLabs, and AppDiscovery. In its third-quarter report for 2023, AppLovin revealed a 21% year-over-year increase in revenue and $109 million in net income, boosted by its AXON 2.0 AI-powered advertising engine.
- Crexendo Inc. This company offers telecommunications, broadband Internet, and cloud-based business services like software licensing and maintenance support. In January, they reported a 36% increase in users for 2023, about twice the industry average.
Advantages of Tech Stocks
Growth potential
Investors often notice that tech stocks, especially in new sectors, can grow very quickly. They sometimes wait to invest when these stocks aren’t doing as well, believing they’ll grow a lot.
Tech stocks can grow in different ways. Big companies might not grow as much because they’re already so popular and big. However, smaller or newer tech companies that make big breakthroughs can suddenly become popular and grow a lot. Surprisingly, even some of the biggest tech companies like Amazon, Meta, and Alphabet are still growing.
Advanced innovation
Tech trends always shift as companies try to use the newest technology and keep up with innovations. This means the tech sector is ready for big advancements. One recent big trend in tech is AI, which is becoming more common in companies in lots of different industries. Tech companies that help make this happen could benefit from the growing AI trend.
Disadvantages of Tech Stocks
Fluctuations in the tech sector
Although it might seem like the tech industry always goes up, that’s not always true. In 2022, for example, the sector had a tough time. Even big companies like Alphabet saw their stock prices drop significantly, with Alphabet’s dropping by 39%.
Sometimes, the tech industry faces challenges because of disruptions in the supply chain. This happens when issues get the materials and equipment needed to make the specialized parts used in tech products. For instance, a shortage of semiconductor components affected various industries for several years.
Trends shift quickly
The big profits of tech companies can attract investors who might not know much about the technology. The tech industry changes fast with new ideas and possibilities. If investors aren’t ready for this or don’t understand the basics of tech companies, they might follow a trend that’s already passed.
Advantages
- Potential for Growth
- Cutting-edge Innovation
Disadvantages
- Tech Industry Volatility
- Investors might miss out on fast-changing trends.
The Bottom Line
The tech industry saw significant growth in 2023, and it’s expected to continue in 2024. Yiren Digital, GRAVITY, and Fang Holdings are the top tech stocks for value, growth, and momentum in February 2024. However, investors should be aware of risks like market turbulence and the fast-changing nature of trends in the tech sector.
The information provided on Investopedia is for informational purposes only. Please refer to our warranty and liability disclaimer for more details.
The author does not own any of the mentioned securities as of the date this article was written.
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