Bernstein's top tech stocks for 2024
As market strategists turn increasingly bullish on the S&P 500's (^GSPC) 2024 year-end point target, Bernstein analysts unveil their top tech stock picks — Broadcom (AVGO), Uber (UBER), Pinduoduo (PDD), Taiwan Semiconductor (TSM), Grab Holdings (GRAB) — for investors in 2024.
Yahoo Finance Live reviews the tailwinds heading into 2024 that these tech companies could be expected to ride out on into the new year.
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Video Transcript
BRAD SMITH: Investors flocked to tech stocks this year. The Magnificent Seven-- Amazon, Apple, Alphabet, NVIDIA, Meta, Microsoft and Tesla-- we put them all in there-- helped the S&P 500 reach new heights in 2023. The index currently up over 20% this year. So who will be among the winners in 2024?
Analysts at Bernstein say the top tech names investors should buy in the new year, they're Grab, Broadcom, Uber, Pinduoduo and Taiwan Semiconductor here, so a few to break down. First and foremost, this is one of the second mentions that we've seen in top picks, top tech names for 2024 of Uber. And as we're continuing to look at some of the reasons, at least for Bernstein, they're calling out this business still being a growth business for their ability to take share and delivery and ride sharing, but delivery is proving to be sticky, they mentioned, but increasingly profitable. People like convenience, they wrote.
SEANA SMITH: Yeah, this is the second call. We were just talking about JP Morgan also naming Uber as one of its top internet picks here for 2024 when you take into account the rapid adoption of ride share and exactly what they see driving that business going forward, considering that they seem to be widening their lead against their closest competitor when it comes to Lyft.
But what stuck out to me in this report here, at least from the outlook for top picks for 2024 was Broadcom, because yes, we talk about the usual plays all the time when it comes to NVIDIA. NVIDIA is also one of Bernstein's top picks for 2024. But for Broadcom, and they're making the argument there, as Stacey Raskin, the lead analyst for this team here, saying that it is going to benefit from this robust AI story that bridges the near term core slowdown, as well as the significant growth that could be on the way for VMware. So making the case that Broadcom really has room to move to the upside.
Also, they're bullish on NVIDIA they're saying it's the best way to play AI, not exactly a massive surprise given the huge run up that we've seen in NVIDIA stock, up just around 240% since the start of the year. Their price target, though, on NVIDIA $700 a share.
BRAD SMITH: Really?
SEANA SMITH: We talk about the upward momentum that they see in terms of some of those future gains, certainly pretty high when you compare it to where we are today, still below $500 a share.
