Best-Performing Tech Stocks for July 2024

Technology stocks consistently attract significant investor interest due to their historically high returns and promising future potential. Monitoring this sector and identifying top performers can be advantageous.

While past performance doesn’t guarantee future success, many leading technology companies continue to deliver impressive returns over time. For instance, Amazon has consistently shown substantial gains. Therefore, staying informed about top-performing tech stocks can provide insights into potential high-growth opportunities.

Here are the top-performing tech stocks in 2024, selected exclusively from the Technology Select Sector SPDR Fund ETF (XLK):

Best tech stocks as of July 2024

It’s also valuable to monitor some of the underperforming stocks in the tech sector. Why? Sometimes, a stock’s underperformance could be attributed to its rapid rise in the previous year. Investors may need time to absorb previous gains, while the company itself requires time to align its operations with its current stock price. Thus, this year’s underperformers could potentially regain favor in the coming year.

Here are the worst-performing tech stocks from the same fund:

Worst-performing tech stocks as of July 2024

Widely held tech stocks

Should you invest in the hottest tech stocks?

Investing in individual stocks can be challenging. It requires a deep understanding of the business, its industry dynamics, and where it’s headed, especially in the complex world of tech stocks. For those willing to dedicate the time and effort, the potential for significant returns can be enticing.

But what about investors who lack the expertise or time? They can still participate in the thriving tech sector through index funds. These funds track specific collections of stocks without attempting to outperform the market, aiming instead to mirror the average performance of their holdings.

For exposure to tech stocks, consider mutual funds or exchange-traded funds (ETFs) focused exclusively on the technology sector. There’s a wide range of options available, from funds exclusively dedicated to tech to those with substantial allocations in the sector, such as Nasdaq Composite index funds, which encompass thousands of stocks listed on the Nasdaq exchange.

Regardless of what you invest in, holding onto your investments is crucial to capture potential returns. This is why passive investing often proves more effective than active trading.

In Conclusion

Following the hottest tech stocks can provide insights into market preferences, but before investing in any, thorough research is essential to understand the business and its prospects. Remember, there’s no pressure to invest in companies you’re not comfortable with. As Warren Buffett famously remarked, “The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch.”