Navigating the ups and downs of the market can be a daunting task, even more so when you’re aiming to outperform it. But, if you’re seeking to pull ahead this June, one solid strategy would be to focus on ‘A-rated’ tech stocks. These highly ranked stocks are prized for their impressive performance and immense potential for growth.
Such stocks have consistently outshone the market for several quarters, a trend that has been reinforced by advances in technologies such as generative artificial intelligence, large language models, the Internet of Things, and machine learning. Each of these technological leaps amplifies the role of technology in our daily lives, increasing the demand for the products these firms craft.
The tech-laden Nasdaq composite has excelled this year, with a 15% surge that surpasses both the S&P 500 and the Dow Jones Industrial Average. With this precedence, it’s crucial that investors target ‘A-rated’ tech stocks for their portfolios.
The Portfolio Grader utilizes various parameters such as momentum, earnings performance, analyst sentiment, and growth history to assign grades from “A” through “F.” Here are some top ‘A-rated’ tech stocks that could be your potential picks for the month.
Nvidia (NASDAQ:NVDA) has been a standout player with a market capitalization edging towards $3 trillion and an impressive 200% stock surge within the past 12 months. This semiconductor giant crafts the potent H100 graphics processing units vital for powering generative AI applications.
Looking ahead, Nvidia’s upcoming Blackwell platform offers the capability for customers to build and run real-time generative AI on high capacity large language models at a significantly reduced cost and energy consumption. With a near monopoly over the blossoming market for generative AI and high-performance semiconductors, Nvidia is in a leading position for continued profitability.
Also, the recent execution of a 10-for-1 stock split will likely attract more retail investors, pushing the stock price even higher. NVDA stock has seen a 144% increase this year and has earned an “A” rating in the Portfolio Grader.
Super Micro Computer (NASDAQ:SMCI) has experienced a slump recently, causing the stock price to dip below $800 from near $1,200 in March. However, this market overreaction could potentially provide a bargain entry point. SMCI’s earnings report displayed solid results, with sales tripling from last year and earnings per share quadrupling.
Moreover, Supermicro has increased its guidance and the company’s server architecture is crucial in bundling Nvidia’s top products for seamless AI applications. Despite a recent pullback, SMCI’s stock has seen a remarkable run with a 170% rise so far in 2024, earning it an “A” rating in the Portfolio Grader.
Coinbase Global (NASDAQ:COIN) is an integral player in providing access to the crypto market with its trading platform that allows buying, selling or trading of nearly 250 different assets. With robust revenue in the first quarter of $1.58 billion, up from $736 million the previous year, Coinbase has showcased its potential for growth. COIN stock has surged 40% this year and has been graded “A” in the Portfolio Grader.
CleanSpark (NASDAQ:CLSK), a bitcoin miner, offers another route to invest in Bitcoin without purchasing the coin itself. With data centers in New York and Georgia, CleanSpark is increasing its operations and as the price of Bitcoin hovers around $69,000, the company finds itself among the top crypto and tech stocks to buy now. CLSK stock has surged 44% this year and is “A” rated in the Portfolio Grader.
Paymentus Holdings (NYSE:PAY) is a financial services company that excels in facilitating its clients’ payment procedures. The company’s first quarter earnings included a revenue that was up 24.6% from a year ago. PAY stock has increased 8% this year and earns an “A” rating in the Portfolio Grader.
AppLovin (NASDAQ:APP) is a mobile tech company that provides end-to-end software and AI solutions for businesses to reach, monetize and grow their global audiences. Substantial growth in revenue and net income have driven APP stock up by 92% this year, earning an “A” rating in the Portfolio Grader.
Consider these ‘A-rated’ tech stocks while balancing your investment portfolio for June. Their impressive performances could potentially lead to significant gains in the coming months.
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