The stock market is healing and trending in the right direction after a miserable 2022. But the gains this year have not been even. Some sectors, such as pharmaceuticals and retail, continue to struggle. Meanwhile, tech names are among the hottest stocks, and cryptocurrencies are red-hot as well.
Knowing where to put capital to work in a market like this is important. This is especially true since the market recovery is likely to continue in fits and starts amid signs the economy is slowing. Corporate earnings are proving to be a mixed bag and more interest rate hikes are likely in the near term.
The names below are among the hottest stocks and cryptos on the market right now, having significantly outperformed the broader market so far this year.
| AMD | Advanced Mirco Devices | $90.11 |
| ETH-USD | Ethereum | $1,943.45 |
| PANW | Palo Alto Networks | $192.27 |
Advanced Micro Devices (AMD)
Semiconductor stocks are making a big comeback this year. Within the sector, Advanced Micro Devices (NASDAQ:AMD) has been one of the best performers recently, rising 39% year to date and more than 57% over the past six months.
Investor sentiment toward AMD and other semiconductor and microchip manufacturers improved as global supply chain problems eased and as artificial intelligence (AI) has dominated headlines with the advent of large language models such as ChatGPT. It is chips designed by AMD and others that are expected to power the development of AI technology. Additionally, AMD continues to take market share from its chief rival, Intel (NASDAQ:INTC).
On Jan. 31, the company reported better-than-expected Q4 revenue and earnings. This positive print stood in sharp contrast to the nightmarish results issued by Intel that sent its shares spiraling. While AMD did warn of a 10% decline in year-over-year sales for this year’s first quarter, the company has a history of under-promising and over-delivering.
Ethereum (ETH)
The entire cryptocurrency sector has been red-hot this year. However, no crypto is hotter right now than Ethereum (ETH-USD). Coming off its recent Shanghai hard fork, or “Shapella” upgrade, ETH ran up past $2,000. While the token has given back some of those gains, it is still up nearly 7% so far this month and more than 60% this year.
The Shanghai hard fork allows people to access the cryptocurrency more easily, and analysts have said it could potentially unlock more than $30 billion of liquidity in Ethereum. The upgrade provides more liquidity by allowing investors to withdraw their staked assets quickly and efficiently.
The latest upgrade follows the “Merge,” which occurred in September and made Ethereum the most energy-efficient cryptocurrency to validate. Some ETH bulls claim that it is only a matter of time before it surpasses Bitcoin (BTC-USD) in price.
Palo Alto Networks (PANW)
Shares of cybersecurity company Palo Alto Networks (NASDAQ:PANW) have been on a run, gaining 38% so far this year. This includes the 12.5% boost the stock got after the company reported its latest quarterly results on Feb. 21. In fact, PANW stock has been galloping ahead since the company turned profitable last year, ending more than a decade of red ink.
For its most recently reported quarter, Palo Alto Networks announced earnings of $1.05 per share, which trounced analysts’ consensus forecast of 78 cents. Meanwhile, revenue rose 26% year over year to $1.7 billion. Management also issued strong guidance, saying it should achieve adjusted earnings per share of $3.97 to $4.03 for fiscal 2023.
Not only does Palo Alto Networks continue to grow its customer base at a fast clip, but it is also growing through acquisitions, spending nearly $4 billion to purchase smaller cybersecurity firms.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.