Following a challenging 2022 for the technology sector, 2023 has witnessed a renewed surge of optimism regarding the capacity of these companies to drive innovations. The prevailing focus on artificial intelligence (AI) has prompted businesses across sectors to explore its integration into their offerings, which augurs well for the sector’s future prospects. However, inflation, interest rates, and supply-chain disruptions remain headwinds for the sector.
Thus, leveraging the TipRanks Stock Screener tool, we have shortlisted stocks that have received a Strong Buy rating from analysts. Further, analysts’ price targets reflect upside potential of more than 20%. Finally, these stocks have an Outperform Smart Score (i.e., 8, 9, or 10 out of 10) on TipRanks, indicating a relatively high chance to outperform the broader market.
Here are the five key stocks from the tech sector that investors can consider.
- Amazon (NASDAQ:AMZN) – Amazon.com provides online retail shopping and cloud computing services. Analysts currently see upside potential of 30% in AMZN stock. Also, it has a Smart Score of 8 out of 10.
- Nvidia (NASDAQ:NVDA) –This software company manufacture of computer graphics processors, chipsets, and related multimedia software. In the last four days, 11 analysts rated the stock a Buy. The stock’s price forecast of $521.77 implies 20.4% upside potential. NVDA stock has a Smart Score of 8 out of 10.
- Taiwan Semiconductor (NYSE:TSM) – Taiwan is a multinational semiconductor manufacturing and design company. TSM stock has upside potential of 36.4%, according to analysts, and a Smart Score of 8 out of 10.
- Alibaba Group (NYSE:BABA) – Alibaba is a provider of e-commerce, retail, Internet, and technology services. Following upbeat Q2 results released on August 8, 12 analysts rated the stock a Buy. BABA stock’s average price target implies upside potential of 55.8%. Moreover, it has a “Perfect 10” Smart Score.
- Advanced Micro Devices (NASDAQ:AMD) – AMD produces semiconductor products and devices. The stock has an average price target of $141.90, which implies 35.9% upside potential from current levels. Also, its Smart Score of 8 out of 10 is encouraging.
