Wall Street Analysts Highlight 12 Promising Tech Stocks for 2024

On October 21, 2023, during an appearance on CNBC’s ‘The Exchange,’ Steven Wieting, chief investment strategist at CIO Group, expressed a bullish outlook on the technology sector, particularly in areas like cybersecurity software. He noted that tech companies have experienced double-digit earnings growth for several years, although he anticipates a slowdown in this growth trajectory going into the next year. Wieting drew a comparison to the late 1990s, highlighting that despite warnings of an impending market collapse during that period, tech stocks continued to rally.

He characterized the current market environment as a mature bull market, pointing out that the S&P 500 is trading at a price-to-earnings ratio of 27 times trailing earnings. Despite these high valuations, Wieting believes the economy is set to improve, suggesting that while returns may not match previous highs, earnings growth remains robust in the tech sector. He emphasized that the growth in artificial intelligence infrastructure is particularly notable, with a staggering growth rate of 42%, the fastest since the advent of the personal computer.

Wieting highlighted that while certain sectors, such as construction and manufacturing, have stagnated, consumer spending has risen by 3.5% as of mid-third-quarter 2023. He attributed the overall economic caution to concerns about tariffs impacting nearly 90% of industries surveyed in the ISM report.

In light of this context, a selection of 12 tech stocks has emerged as particularly attractive according to Wall Street analysts. This list was compiled based on high performance over the past three months and strong upside potential, as favored by elite hedge funds.

Top 12 Tech Stocks to Watch

1. **Franklin Wireless Corp. (NASDAQ:FKWL)**
– **3-Month Performance**: 23.44%
– **Average Upside Potential**: 21.21%
On October 13, Lake Street initiated coverage with a Buy rating and a price target of $6, citing Franklin’s strong positioning in the mobile hotspot market.

2. **Core Scientific Inc. (NASDAQ:CORZ)**
– **3-Month Performance**: 36.85%
– **Average Upside Potential**: 21.73%
Following an upgrade from Cantor Fitzgerald, Core Scientific’s price target rose to $26. The company is navigating a potential acquisition while maintaining a strong operational profile.

3. **NetScout Systems Inc. (NASDAQ:NTCT)**
– **3-Month Performance**: 22.70%
– **Average Upside Potential**: 23.87%
Recently, NetScout launched the Omnis KlearSight Sensor for Kubernetes, enhancing visibility in complex cloud environments.

4. **Allot Ltd. (NASDAQ:ALLT)**
– **3-Month Performance**: 26.25%
– **Average Upside Potential**: 28.59%
Initiated by TD Cowen with a Buy rating, Allot is positioned for growth in the cybersecurity sector, especially among small businesses.

5. **Nebius Group (NASDAQ:NBIS)**
– **3-Month Performance**: 106.66%
– **Average Upside Potential**: 29.05%
The launch of Nebius AI Cloud 3.0 Aether aims to enhance security for enterprise AI workloads, marking significant advancements in the sector.

6. **Ondas Holdings Inc. (NASDAQ:ONDS)**
– **3-Month Performance**: 231.46%
– **Average Upside Potential**: 34.56%
Analysts have noted Ondas’s potential in the growing drone and robotics security market, backed by a Buy rating from H.C. Wainwright.

7. **Bitdeer Technologies Group (NASDAQ:BTDR)**
– **3-Month Performance**: 65.09%
– **Average Upside Potential**: 36.40%
Recent upgrades reflect Bitdeer’s strong positioning within the HPC sector, supported by a surge in AI-related demand.

8. **Kopin Corporation (NASDAQ:KOPN)**
– **3-Month Performance**: 80.49%
– **Average Upside Potential**: 42.12%
Analysts foresee significant revenue growth driven by defense contracts and innovations in microdisplay technology.

9. **Veritone Inc. (NASDAQ:VERI)**
– **3-Month Performance**: 161.28%
– **Average Upside Potential**: 46.58%
H.C. Wainwright increased Veritone’s price target, noting strong early adoption of its AI solutions.

10. **Vuzix Corporation (NASDAQ:VUZI)**
– **3-Month Performance**: 59.03%
– **Average Upside Potential**: 47.06%
Recent contracts with defense contractors highlight Vuzix’s potential in augmented reality and smart glasses.

11. **Canaan Inc. (NASDAQ:CAN)**
– **3-Month Performance**: 121.02%
– **Average Upside Potential**: 56.66%
Canaan’s outlook has improved following resolution of its NASDAQ listing issues, promising strong shipment schedules.

12. **MultiSensor AI Holdings Inc. (NASDAQ:MSAI)**
– **3-Month Performance**: 56.54%
– **Average Upside Potential**: 210.05%
The company is gaining traction with its innovative AI platforms, showcasing significant growth potential.

Investors looking to capitalize on the technology sector’s resurgence might find these stocks appealing as they reflect strong performance and promising future prospects. Wall Street’s focus on these companies underscores the continued optimism surrounding the tech industry, despite broader economic uncertainties.