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Tech stocks have made impressive gains over the past year, driven by a boom in artificial intelligence (AI) and a pause in interest rate hikes by the U.S. Federal Reserve. The top tech stocks for February 2024 are a diverse group, including a buy-now-pay-later platform, an aerospace company, and a Bitcoin miner. They all saw significant price rallies over the past month, far outpacing the tech-heavy Nasdaq Composite Index’s one-year gain of 7%.
All data are as of Feb. 12, 2024.
Key Takeaways
- Tech growth stocks are often in an expansion phase, offering innovative products, services, or technologies.
- Investing in these companies can provide exposure to cutting-edge technologies and market leaders in emerging fields, such as artificial intelligence, cloud computing, e-commerce, and renewable energies.
- Tech growth stocks typically exhibit higher volatility compared to the broader market and more established companies.
- Sector/Industry: Financial Services
- Price: $47
- Market Cap: $0.3 billion
- 1-month total return: 157%
Launched in 2017, Sezzle offers a digital payments platform that provides consumers with a flexible alternative to traditional credit, supporting 30,000 active merchants and serving 2.6 million active consumers as of Sept. 30, 2023.
The company allows consumers to purchase merchandise upfront and pay in four interest-free installments over six weeks, primarily generating revenue through merchant processing fees. As a buy-now-pay-later platform, Sezzle stock was pressured by rising interest rates, but it has joined the rally among other interest rate-sensitive names, as the Federal Reserve is expected to begin cutting rates this year.
- Sector/Industry: Aerospace & Defense
- Price: $5.30
- Market Cap: $0.2 billion
- 1-month total return: 107%
Intuitive Machines is a space company dedicated to facilitating robotic and human exploration of the Moon, Mars, and beyond through a range of space products and services.
In April 2023, Intuitive Machines announced a $719 million contract awarded by the National Aeronautics and Space Administration (NASA). The contract, which has a five-year term, is aimed at supporting NASA’s Joint Polar Satellite System and underscores the role of Intuitive Machines in spacecraft development, autonomous systems, and near-space communications.
- Sector/Industry: Financial services
- Price: $15.63
- Market Cap: $3 billion
- 1-month Total Return: 97%
CleanSpark, which describes itself as “America’s Bitcoin Miner,” owns and operates 3.2 million square feet of low-carbon mining centers located in Georgia and New York. In February, CleanSpark announced that it would expand by acquiring three bitcoin mining facilities in Mississippi—a move the company expects will help it double its current operational hash rate, which is a measure of computational power.
- Sector/Industry: Semiconductors
- Price: $2.61
- Market Cap: $0.15 billion
- 1-month total return: 92%
Pixelworks specializes in building advanced content creation, video delivery, and display processing technologies that enhance viewing experiences across all screens.
Pixelworks reported significant growth in the fourth quarter of 2023, with a 25% increase in total revenue and a record 44% increase in mobile revenue to $11.9 million. This growth was driven by the launch of smartphones and partnerships, including a multi-year agreement with Walt Disney Studios and the release of the Universal Pictures film “Argylle,” which used Pixelworks’ TrueCut Motion technology.
- Sector/Industry: Information Technology Services
- Price: $1.60
- Market Cap: $0.2 billion
- 1-month total return: 58%
FiscalNote, a leading provider of policy and global intelligence, leverages data and technology to enable customers to navigate political and business risks effectively, serving around 5,000 clients globally through brands like CQ, FrontierView, Oxford Analytica, and VoterVoice, with offices across North America, Europe, Asia, and Australia.
FiscalNote has benefitted from the artificial intelligence boom with positive third-quarter 2023 earnings results, which marked the company’s first quarter of adjusted EBITDA profitability. The company also reported 17% year-over-year revenue growth to $34 million, driven by strong demand for its AI-enabled intelligence services, and launched the FiscalNote AI Co-Pilot Program to advance its leadership in AI for the legal and policy sector.
How We Selected the Best Cheap Tech Stocks
We selected these technology stocks based on their percentage return over the last 30 days. We only included companies trading under $50 per share that are listed on the Nasdaq or the New York Stock Exchange (NYSE).
The tech sector has recently seen strong gains, with AI-related names leading the charge. Moreover, like other growth stocks, tech companies are sensitive to interest-rate changes, responding favorably to low interest rate environments. Investors looking to purchase tech stocks can buy them individually or through ETFs, such as the Invesco QQQ Trust Series (QQQ), via their online broker.
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As of the date this article was written, the author does not own any of the above stocks.