Stocks To Buy

Wall Street Favorites: 3 Tech Stocks With Strong Buy Ratings for June 2024

Despite recent market fluctuations, tech stocks remain strong long-term buys with the potential to mint new millionaires. The rising demand for advanced technology ensures their increasing importance, making them profitable holdings for investors. Overlooked tech stocks, in particular, present significant potential due to lower valuations and smaller market caps than giants. This trend underscores the importance of investing in strong buy tech stocks. Wall Street analysts have given “strong buy” ratings to several tech stocks, highlighting their significant growth potential.

The robotics field also offers bountiful opportunities, with powerful names that continue to deliver strong gains to investors. As the tech sector is known for high growth potential, the predicted fall of interest rates later this year could improve the implied valuation of many companies. 

Here are three strong buy tech stocks for June 2024. Each has millionaire-making potential. These are also poised to become long-term winners for aggressive investors.

Strong Buy Tech Stocks: Amazon (AMZN)

Amazon (NASDAQ:AMZN) remains a top pick for its diverse portfolio, including eCommerce, cloud computing, and AI. Analysts have consistently rated it as a strong buy.

Despite a setback in 2022 due to higher inflation, Amazon has streamlined operations. The company has also invested in artificial intelligence to improve efficiency and drive growth, particularly in its AWS business. 

In addition to AMZN’s strong buy rating, analysts are also bullish on its fundamentals moving forward. The earnings per share (EPS) for 2024 is projected to be $4.63. This was a substantial 59.61% increase from the 2023 EPS of $2.90. Looking ahead to the next year, the company’s revenue is forecast to grow by 11.04% to $722.86 billion. The EPS is expected to increase by 27.02% to $5.88. 

AMZN’s trend of capital appreciation may continue to run in a straight line if these forecasts end up being correct. This makes it one of those strong buy tech stocks for investors to consider.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is gaining traction in the AI chip market, rivaling Nvidia (NASDAQ:NVDA). The company has shown strong financial performance and is expected to continue its growth trajectory.

Along with AMD’s strong buy consensus rating, there could be more good news for investors on the horizon.

AMD has revised its Instinct accelerator roadmap, planning to introduce new products annually. The upcoming MI325X accelerator, expected in Q4, will feature increased memory capacity (288GB HBM3e) and higher memory bandwidth (6TB/s). 

The MI350 series, set to launch in 2025, is projected to deliver a 35x boost in AI inference performance and compete with Nvidia’s B-Series platforms. The MI400 series, anticipated in 2026, will be based on a new generation of CDNA architecture called ‘Next’ and compete with Nvidia’s R-Series platforms.

Given AMD’s relatively cheaper valuation compared with Nvidia’s, I think there’s some great potential for the stock to shine and deliver strong capital appreciation for investors.

CrowdStrike (CRWD)

CrowdStrike (NASDAQ:CRWD) has maintained strong buy ratings due to its high demand and impressive revenue growth. The stock is expected to continue its upward trend as cybersecurity remains a critical concern for businesses​.

In a recent article, Morningstar noted that CrowdStrike’s growth was primarily driven by its success in newer product categories, such as SIEM, identity, and cloud security. However, despite CrowdStrike’s incredible performance, the analyst believes the stock’s valuation is stretched, making it the most expensive software business globally.

Morningstar maintains a fair value estimate of $300 per share for CrowdStrike, assigning it a 3-star rating. The firm forecasts a 29% compound annual growth rate for CrowdStrike’s revenue over the next five years.

I believe there’s some truth in the analyst’s assessment given its valuation. However, one also needs to contend with the growing threats and costs of cyber crime globally, which is a key tailwind for companies like CRWD. It may be a premium company, but with an average of around 35% quarterly revenue growth per quarter, it might not be overpriced.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

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