tech stocks January 2024 - Wall Street Favorites: 3 Tech Stocks with Strong Buy Ratings for January 2024

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After getting off to a slow start, the January effect kicked in for stocks. As I write this, the S&P 500 is trading at an all-time high. As in 2023, technology stocks have been part of that rally. But this isn’t just about the Magnificent 7, or Magnificent 6 depending on how you feel about Tesla (NASDAQ:TSLA). There are other choices to consider among tech stocks in January 2024.  

I know this because several tech stocks are getting Strong Buy ratings from analysts. Of all the analyst ratings, the Strong Buy is the most coveted. Many investors know that analysts often pull their punches. That means a Buy rating can mean Hold and a Hold can mean Sell.  

But when analysts give a stock a Strong Buy there’s no doubting what it means. They expect the stock to move higher in the next 12 to 18 months, and usually sharply higher. Here are three tech stocks in January 2024 that have a consensus Strong Buy rating or have been receiving Strong Buy ratings in the last month.  

Advanced Micro Devices (AMD) 

The expansion of artificial intelligence (AI) will be a continuing boost to chip stocks in coming years. In 2023, that growth was primarily seen in Nvidia (NASDAQ:NVDA). While Nvidia is likely to outperform the market again in 2024, the chip stock with the most upside in 2024 may come from Advanced Micro Devices (NASDAQ:AMD).  

This is an issue of supply and demand. At this time, Nvidia simply can’t keep up with all the demand for its AI chips. And even if they could, companies are hoping for options. Advanced Micro Devices has just released its MI300X GPU chipset. This could be the choice companies were hoping for, particularly if the MI300 is priced at a discount to Nvidia’s H100 GPU.  

AMD stock has received 13 analyst upgrades in the last 30 days making it one of the most highly rated tech stock in January 2024. While not all of them have been equivalent to a Strong Buy, Raymond James reiterated its Strong Buy rating and Cantor Fitzgerald initiated coverage with an Overweight rating, which is the equivalent of a Strong Buy.  

T-Mobile (TMUS) 

T-Mobile (NASDAQ:TMUS) has taken the crown as the largest wireless carrier with 21.6 billion prepaid users. It also has a 5G network that covers 98% of the United States. That makes it the winner in the 5G battle. But what should investors make of a stock that is up 136% in the last five years, and 10% in just the last year? 

Analyst sentiment suggests the answer is to continue to buy the stock. The reason is data consumption. Higher data consumption means higher earnings. That’s why T-Mobile’s leadership position means so much.  

TMUS stock receives a consensus Strong Buy rating. That’s backed up by projected earnings growth of 21% in the next year. And Wall Street believes that earnings growth will average 68% over the next five years. 

Adding to the attraction of T-Mobile is its valuation. The current P/E ratio of TMUS stock is 23.4x and its forward P/E ratio is 16.5x. That’s well below the stock’s five-year average of 44.15x.  

Bel Fuse (BELFB) 

Bel Fuse (NASDAQ:BELFB) is another popular analysts’ choice among tech stocks in January 2024. The company has a 75-year history of connecting electronic circuits. It operates through three segments: power solutions, connectivity solutions, and magnetic solutions. 

It’s a steady business that is essential to other industries. In 2024 that list will include aerospace, defense, and rail. The company is also projecting demand to increase in AI, Space and electric vehicle (EV) infrastructure in 2024 and beyond.  

That doesn’t mean it’s a growth giant. In fact, in the last quarter, it’s revenue was down year-over-year. But the company is posting impressive margin expansion. In 2019, it’s gross margin was 22.9%. Last year that was up to 32.5%. This level of expansion appears to be sustainable, and with a stock that’s trading at 10.5x forward earnings, BELFB looks to be an undervalued pick among tech stocks.  

On the date of publication, Chris Markoch 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.    

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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