The first half of 2024 saw a big comeback in global markets, mostly thanks to renewed excitement about the tech sector’s recovery and new developments in artificial intelligence. US stock markets hit record highs in the first quarter, driven by a strong showing from tech companies.
Although the broader innovation economy has been shrinking, signs of a turnaround and stabilisation are starting to show after two tough years. There’s also been a big uptick in interest in impact investing, which focuses on tackling social and environmental issues. AI has been especially noteworthy, with one in every four funds started in 2023 targeting AI innovations. Here are some stocks to watch in the second half of 2024.
Microsoft’s Cloud Power
Sector: Technology
Overview: Microsoft is poised for growth with its advancements in cloud services and AI, notably through Azure and its Copilot series, which have significantly boosted its tech industry profile.
Reasons to Invest: Microsoft’s aggressive expansion in cloud computing through Azure and its integration with enterprise solutions underscores its dominant position in the cloud sector. Its continuous investment in AI and machine learning, including partnerships and acquisitions, positions it to capitalize on next-generation computing. Furthermore, Microsoft’s commitment to sustainability and carbon-negative goals enhances its appeal to socially conscious investors.
Nvidia’s AI Frontier
Sector: Technology & Semiconductors
Overview: NVIDIA, one of the world’s most valuable company, is possibly positioned for significant growth with a predicted 42% upside in 2024. This growth is supported by its advanced AI chip technologies and a projected $100 billion in free cash flow over the next two years, which will further fuel its expansion initiatives.
Reasons to Invest: NVIDIA has evolved into a comprehensive AI ecosystem. Its integration of hardware, software, and AI capabilities, along with strategic partnerships, positions it for continued market dominance.
Tesla’s Electric Dreams
Sector: Automotive, Clean Energy
Overview: Tesla‘s blend of growth opportunities and challenges continues as it leads in electric vehicles and advances in self-driving software.
Reasons to Invest: Despite market volatility, Tesla’s strategic moves like expanding its vehicle lineup and advancing autonomous driving technology position it well for growth. However, regulatory and competitive challenges require cautious navigation.
Harnessing the Wind and Sun with NextEra Energy
Sector: Energy, Renewables
Overview: As one of the largest renewable energy providers globally, NextEra Energy leads in wind and solar projects.
Reasons to Invest: NextEra’s commitment to expanding renewable energy aligns with global sustainability trends, making it attractive for ESG-focused investors. Its ambitious growth plans in renewable projects highlight its potential.
Pioneering Chipmaking with ASML
Sector: Semiconductors
Overview: ASML headquartered in the Netherlands, is at the forefront of the semiconductor industry. It specialises in advanced photolithography machines, which are essential for producing cutting-edge microchips.
Reasons to Invest: ASML stands at a critical junction of technology and demand. As the only supplier of extreme ultraviolet (EUV) lithography machines needed for advanced chip manufacturing, ASML benefits from a unique market position amid a global semiconductor shortage. The company’s technology is crucial for producing smaller, more powerful chips required for a wide range of applications, from smartphones to high-performance computing and AI. With semiconductor manufacturers expanding capacity and increasingly localizing production, ASML’s cutting-edge technology and equipment are in high demand, reinforcing its status as an indispensable player in the tech industry.
What will markets do for the rest of 2024?
As we move into the second half of the year, each of these companies presents a potential opportunity for investors interested in technology, media, consumer goods, and chip tech. The current economic landscape has set the stage for these stocks to potentially lead the charge.
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