Technology stocks have always been a hot topic in the stock market, known for their impressive returns and potential for growth. It’s important for investors to keep an eye on the tech sector and follow the top performers to stay informed.
While past performance doesn’t guarantee future success, many top tech stocks continue to deliver strong returns over the years. For example, Amazon has seen significant gains in the past, highlighting the importance of monitoring the best tech stocks for potential growth opportunities.
Here are the top-performing tech stocks in 2024, all of which are part of the Technology Select Sector SPDR Fund ETF (XLK).
Best Performing Tech Stocks as of September 2024
| Company and Ticker Symbol | Performance in 2024 |
|---|---|
| Nvidia (NVDA) | 141.0% |
| GoDaddy (GDDY) | 57.7% |
| Super Micro Computer (SMCI) | 54.0% |
| Arista Networks (ANET) | 50.0% |
| Fair Isaac (FICO) | 48.7% |
| Monolithic Power Systems (MPWR) | 48.2% |
| Broadcom (AVGO) | 45.9% |
| Motorola Solutions (MSI) | 41.2% |
| KLA (KLAC) | 41.0% |
| Tyler Technologies (TYL) | 40.6% |
Data as of Aug. 30, 2024
It’s also valuable to keep an eye on underperforming tech stocks. Sometimes a stock may be lagging due to previous rapid growth, giving it room to catch up in the future. This year’s underperformers could turn into next year’s top performers.
Here are the worst-performing tech stocks from the same fund.
Worst Performing Tech Stocks as of September 2024
| Company and Ticker Symbol | Performance in 2024 |
|---|---|
| Intel (INTC) | -56.1% |
| EPAM Systems (EPAM) | -32.5% |
| Jabil (JBL) | -14.2% |
| Akamai Technologies (AKAM) | -14.0% |
| ANSYS (ANSS) | -11.4% |
Data as of Aug. 30, 2024
The Magnificent 7 Stocks
Here’s how the Magnificent 7 stocks have performed.
| Company and Ticker Symbol | Performance in 2024 |
|---|---|
| Apple (AAPL) | 18.9% |
| Microsoft (MSFT) | 10.9% |
| Alphabet (GOOGL) | 17.0% |
| Amazon (AMZN) | 17.5% |
| Tesla (TSLA) | -13.8% |
| Nvidia (NVDA) | 141.0% |
| Meta Platforms (META) | 47.3% |
Data as of Aug. 30, 2024
Considering Investment in Hot Tech Stocks
Investing in individual tech stocks requires thorough research and an understanding of the business and industry trends. For those willing to put in the effort, the potential for high returns can be rewarding.
However, investors can also participate in the tech industry through index funds that focus on the technology sector. These funds provide exposure to a diversified portfolio of tech stocks without the need for individual stock selection.
Remember, the key to investment success lies in holding onto your investments for the long term, rather than engaging in frequent trading. Passive investing through index funds can offer stability and consistent returns.
Final Thoughts
Tracking the performance of top tech stocks is a valuable way to gauge market trends. Before investing, it’s essential to conduct thorough research and understand the businesses you are investing in. Remember Warren Buffett’s advice: “The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch.”
Editorial Disclaimer: Investors are encouraged to conduct independent research before making investment decisions. Past performance is not indicative of future results.