The technology industry has performed well over the past year. The generative AI boom and other innovative tech products and services have triggered a monumental shift in the market.
A benchmark ETF, the Technology Select Sector SPDR Fund (NYSEARCA:XLK), has increased by over 38% in the last year, while the S&P 500 has only returned 26%.
Despite experiencing a large rally, many of these may offer investors increased upside throughout 2024.
Below are three technology companies that have performed well. Especially this last year, partly due to the overall interest and excitement swirling around companies implementing AI technology and having a strong buy rating.
Celestica (CLS)
Celestica (NYSE:CLS) provides supply chain and cloud technology services and products for various industries, including industrials, aerospace and defense, and communications.
Over this past year, CLS’s share price has more than tripled, partly due to its strong earnings growth and growing list of generative AI products.
On Jan. 29, Celestica reported earnings for the fourth quarter of the full year 2023, in which it stated that total revenue increased by 5% and net income nearly doubled to $84 million compared to the previous year. It also provided guidance for the first quarter of 2024, which mentioned that anticipated revenue for the quarter is between $2.025 billion and $2.175 billion, which is in line with reported revenue for Q4 2023.
Celestica has been able to ride the overall technology boom in the stock market higher over primarily just this last year. With its growing exposure to cloud technology and generative AI products and services, Celestica is a solid, strong buy option. CLS is poised to continue its upward trajectory and still offer investors a fair valuation.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is primarily a semiconductor manufacturer that produces GPUs for gaming PCs, cloud-based software, and data center applications. It also provides hardware and software for a machine learning and generative AI platform.
On Feb. 21, Nvidia announced its earnings result for the fourth quarter of fiscal year 2024, stating that total revenue more than tripled to just over $22 billion year-over-year. Earnings per share for Q4 FY 2023 were fifty-seven cents, and for Q4 FY 2024, they increased to four dollars and ninety-three cents. Most notably, its data center revenue rose more than fivefold, and its professional visualization segment saw its total sales double year-over-year.
After this stellar earnings report that beat analysts’ expectations, its share price surged by over 16% and has continued to experience growth.
Nvidia is a very strong option for investors seeking exposure to the technology industry, which has been on a very impressive trajectory recently. Strong attention is being placed on the burgeoning generative AI industry and other related fields in which NVDA is a massive player. This has assisted in the large increase in Nvidia’s share price, which has more than tripled since April 2023.
Viant Technology (DSP)
Viant Technology (NASDAQ:DSP) is an advertising tech company that offers a data platform that uses AI to determine cost-effective media solutions and omnichannel marketing services for marketing agencies.
Over this past year, its share price has more than doubled. It has seen a resurgence in investors’ interest following its dramatic decline in 2021, when it started trading publicly.
Investors are seeking greater exposure to the online advertising industry, which has been performing very well lately. Such is the case with Meta Platforms (NASDAQ:META), for example. Its advertising revenue is its most profitable segment, which increased in revenue by over 24% from Q4 2022 to Q4 2023.
On Mar. 4, earnings for the fourth quarter of the full year 2023 were released, stating that total revenue increased by 18% year-over-year. It reported a net loss of 8 million for Q4 2022 and a net income of $3.3 million in Q4 2023. These earnings were mostly in line with what analysts expected. It announced first-quarter guidance in which expected revenue should land in the range of $49 million to $52 million.
Viant had a rough start in 2021 going public, but more recently, it has performed remarkably well through the last year. With the growing importance of online advertising, it is a great time for investors to look into investing in DSP, which is still trading at a great valuation and could offer significant upside with a strong buy rating.
As of this writing, Noah Bolton did not hold (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.