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Tech sector: Which stocks will dominate the market in May? - Expert price targets

Published 2024-04-26, 09:32 a/m
© Reuters.

Thursday was once again not a good day for many investors as US indices took a hit. The Nasdaq 100 declined by -0.54%, the Dow Jones Industrial Average lost even more at -0.97%, and the S&P 500 managed to fare relatively better with a -0.45% decrease.

And what about the InvestingPro AI strategy, Tech Stars? Tech Stars saw a rise of 0.33% on Thursday, as Allegro Microsystems Inc (NASDAQ:ALGM), Axcelis (NASDAQ:ACLS), Teradata (NYSE:NYSE:TDC), Super Micro Computer (NASDAQ:SMCI), IPG Photonics (NASDAQ:IPGP), Enphase (NASDAQ:ENPH), Nvidia (NASDAQ:NVDA), and Extreme Networks Inc (NASDAQ:EXTR) were able to more than offset the losses of the remaining 7 stocks.

Evercore ISI initiated coverage for Allegro on April 15 with an "Outperform" rating and a price target of $36, approximately 20% above the current price. Allegro has been part of Tech Stars since April 1 and has increased by 8.49% this month.

Axcelis, also onboard since April 1, received its last buy recommendation on February 9 from B. Riley, with a price target of $165, well above the current price. The InvestingPro Fair Value is $113.80. Pre-market, the stock is already up by 1.34% on Friday.

Teradata has been in the game for a bit longer and has not yet fully realized its potential. Citi's buy recommendation sets a price target of $45. Morgan Stanley (NYSE:MS) rates it as "Equal Weight" with a $48 target, while Craig-Hallum's "Buy" rating targets $55. However, Evercore ISI's "Outperform" rating tops them all with a target of $58. Considering the current price of $37.61, both human analysts and the AI see significant upside potential.

Opinions on IPG Photonics, however, are divided. Citi suggests selling the stock with a target of $74. Stifel and Benchmark maintain their buy recommendations, expecting gains up to $115 and $116 respectively.

Since announcing quarterly earnings on April 23, 2024, Enphase has received several new and/or confirmed price targets and evaluations. Mizuho, TD (TSX:TD) Cowen, Craig-Hallum, B. Riley, KeyBanc, JPMorgan (NYSE:JPM) and Barclays (LON:BARC) see prices ranging from $128 to $147 as possible. Today, the stock is already up by 1.45% in pre-market trading

Whether these mentioned stocks will still be part of Tech Stars in May remains uncertain. On May 1, the AI will decide which 15 stocks from the tech sector have the greatest potential to outperform the market in the new month.

For those who want to know in advance which players will be taken off the field and who will replace them, getting an InvestingPro subscription is recommended.

It's worth it multiple times over because in addition to the AI strategies that have achieved outstanding performances since 2013 (Dow Detectives 629.8%, S&P 500 Samurai 1083.9%, Value Vault 975.5%, The Best of Buffett 375.0%, Tech Stars 1779.8%, and Mid Cap Marvels 643.0%), there are also plenty of other useful tools (stock screeners, ProTips, and more). Plus, with an InvestingPro subscription, the annoying ads disappear.

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