5 Tech Stocks for Less Than $50 for April 2024

Tech stocks performed well in the first quarter of 2024, defying hotter-than-expected inflation numbers, as AI enthusiasm and strong fourth-quarter earnings gave the sector a vibrant heartbeat.

The top-performing tech stocks for April 2024 include several that cross over with artificial intelligence (AI), such as software that analyzes videos for security threats, a platform for autonomous aerial vehicles, and a semiconductor company that builds sensors for AI-powered robots. The following five tech stocks have posted impressive one-month gains, outpacing the Nasdaq Composite Index over the same period.

All data are current as of market close on April 4, 2024.

• Sector/Industry: Technology services / Packaged software
• Price: $9.79
• Market Cap: $220.29 million
• 1-month Total Return: 192.12% 

Airship is a software company that helps law enforcement and defense organizations analyze videos for potential threats. Its flagship products include Airship Acropolis OS, Airship Command, and Airship Outpost, otherwise known as the Airship Suite. In early March, the company got a huge boost after it was awarded a “large” contract with an agency within the U.S. Department of Justice.

• Sector/Industry: Electronic technology / Semiconductors 
• Price: $9.99
• Market Cap: $406.31 million 
• 1-month Total Return: 88.49%

Ouster designs and manufactures high-resolution lidar sensors for a variety of industries, including automotive, robotics, security, industrial, and crowd analytics. In a nutshell, Ouster’s lidar technology uses laser-based radar to help certain machines “see” their surroundings, which has applications for self-driving cars or AI-powered robots. The company reported a record $83 million in revenue for 2023 (up 103% year-over-year) plus an EBITDA loss of $14 million for the fourth quarter, an improvement from $18 million in the previous quarter.

• Sector/Industry: Technology services / Packaged software
• Price: $18.60
• Market Cap: $1.14 billion 
• 1-month Total Return: 74.98%

Ehang is an autonomous aerial vehicle (AAV) platform with operations in China, East and West Asia, Europe, and other countries. The company specializes in making aerial vehicles with an AI-based command-and-control system that provides autonomous take-off, cruising, and landing. The company reported total revenues equaling about $8 million for 2023, a 260.9% increase from the previous year.

• Sector/Industry: Technology services / Internet software 
• Price: $13,07
• Market Cap: $576.51 million 
• 1-month Total Return: 73.34%

Cardlytics is a digital advertising platform. The company partners with over 1,500 financial institutions—including big names like Chase, Bank of America, Wells Fargo, and PNC, among others—and analyzes their clients’ consumer behavior to build more personalized rewards programs. Cardlytics reported total revenue of $309.2 million for 2023, compared with $298.5 million the year before. It also reported an adjusted EBITDA of $3.8 million for 2023, compared to $45.2 million reported in 2022.

• Sector/Industry: Electronic technology / Semiconductors 
• Price: $33.06
• Market Cap: $2.13 billion 
• 1-month Total Return: 53.77%

Semtech manufactures analog and mixed-signal semiconductors, primarily for the Internet of Things (IoT). On March 26, the company was named a “bullish fresh pick” by an analyst at the investment firm Robert W. Baird, which led to a market rally that pushed the stock up by about 21% before the beginning of April. The company reported net sales of $192.9 million for the fourth quarter of 2023, an improvement over the $152.5 million it reported the year before.

How We Selected Cheap Tech Stocks

We selected top technology stocks based on their percentage return over the last 30 days. We only included companies trading below $50 per share that are listed on the Nasdaq or the New York Stock Exchange (NYSE).

Firms developing AI technology have largely been the matador behind the stock market’s most recent bull run. Several semiconductor companies, like NVIDIA (NVDA), posted record-breaking revenue growth for 2023, as demand for generative AI chips continued to grow. By some predictions, AI chip sales are expected to make up around two-thirds of all semiconductor sales in 2024. Meanwhile, tech companies leveraging AI software for their platforms, like Symbotic (SYM) and ServiceNow (NOW), also posted strong revenue growth for 2023.

While AI technology has generated a lot of enthusiasm, investors should continue looking deeply into a company’s fundamentals to see if its finances can sustain it over the long run. This is especially important as April kicks off the first-quarter earnings season for 2024, during which investors can assess the financial strength of many tech companies. It’s also prudent to pay attention to the Federal Reserve’s rate decisions, as expectations around rate cuts (or lack thereof) could influence how tech companies perform for the remainder of 2024.

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As of the date this article was written, the author does not own any of the above stocks.