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Investors Are Diving Into These 3 Tech Stocks

Technology stocks have staged an impressive rebound in 2023 following a forgettable 2022, with buyers stepping up at every turn. In fact, the Zacks Computer and Technology sector is up 25% year-to-date, crushing the S&P 500’s impressive 9% gain.

And interestingly enough, several market heavyweights from the sector – Meta Platforms META, Alphabet GOOGL, and NVIDIA NVDA – are all helping lead the charge, with shares of each now touching 52-week highs.

Below is a chart illustrating the performance of all three year-to-date, with the S&P 500 blended in as a benchmark.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

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As we can see, all three have been red-hot in 2023, delivering outsized gains. Let’s take a closer look at each.

Meta Platforms

META shares jumped back in favor in 2023 following announced cost-cutting measures and a massive $40 billion share buyback program. Analysts have taken note and become bullish on the company’s earnings outlook, helping push the stock into a Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The company posted a big beat in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 30% and delivering a 4% revenue surprise. Impressively, it reflected META’s second consecutive double-digit percentage EPS beat.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

On a relative basis, META shares aren’t expensive, with the current 20.7X forward earnings multiple sitting well below the 23.2X five-year median and highs of 24.3X in 2022.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Alphabet

Alphabet shares have found plenty of attention in 2023 following better-than-expected quarterly results and excitement around Wall Street’s shiny new toy, artificial intelligence (AI).

Strength in Search and Cloud momentum helped drive the company’s recent better-than-expected results, with the company posting a 10% EPS surprise and revenue modestly ahead of estimates.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

One of the most attractive aspects of Alphabet is the company’s cash-generating abilities; the tech titan generated roughly $17.2 billion in free cash flow throughout the latest quarter, improving 12% from the year-ago quarter.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

NVIDIA

NVIDIA has gripped the entire market following its blowout quarter, with the company posting results well above expectations and providing significant bullish revenue guidance.

The chip titan posted EPS of $1.09, crushing the Zacks Consensus Estimate by nearly 20%. Quarterly revenue totaled $7.2 billion, 10% above expectations but lower than the year-ago quarter.

The real highlight came from the company’s Data Center segment, which includes AI operations. Data Center posted record revenue of $4.3 billion, climbing an impressive 14% from the year-ago quarter and 18% sequentially.

As shown below, the reported value was nearly 10% above the Zacks Consensus Estimate, snapping a streak of negative surprises within the segment.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Jensen Huang, CEO of NVIDIA, said, “A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”

Bottom Line

It goes without saying that tech stocks are back in style in 2023, with many beaten-down stocks now staging significant rebounds.

And all three above – Meta Platforms META, Alphabet GOOGL, and NVIDIA NVDA – have been no exception to this significant momentum, all nearing or making 52-week highs.

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NVIDIA Corporation (NVDA) : Free Stock Analysis Report

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Meta Platforms, Inc. (META) : Free Stock Analysis Report

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Zacks Investment Research