After reaching all-time highs at the end of March, the market took a much-needed breather in April, with the S&P 500 declining 5.5% and the Nasdaq falling 6.7% from the end of March to April lows.
Having led for most of the year, tech stocks swooned a bit further. A number of high-profile growth stocks saw double-digit declines, and semiconductors dipped over 12% from the end of March to their lowest point in April (and over 16% from March highs).
But even with the outsized decline in the spring, tech stocks have been on an absolute tear. And, although the market remains choppy for the time being, most stocks have rebounded nicely in the weeks since and are once again near all-time highs.
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Let’s take a look at the five best-performing tech stocks so far this year and hopefully get a sense of whether they’ve still got room to run. We screened for technology sector companies in the S&P 500 and ranked these names based on their YTD performance. Most of the names on this list should come as no surprise, but one stock stands out as having the most potential if the market stays choppy.
5 Best-Performing Tech Stocks of 2024
| Stock (TICKER) | Year-to-Date Performance | 1-Month Performance |
| Super Micro Computer (SMCI) | 181.3% | -14.7% |
| Nvidia (NVDA) | 81.1% | -1.1% |
| Micron Tech (MU) | 40.4% | -6.1% |
| Western Digital (WDC) | 37.3% | -2.7% |
| Leidos Holdings (LDOS) | 36% | 16.2% |
1. Super Micro Computer (SMCI)
Super Micro has been a major beneficiary of the AI theme due to its role in supplying high-performance server and storage solutions to data centers and server farms. Shares are higher by 181% so far in 2024 (and currently trading at 22x forward earnings), although the fading AI narrative has pulled shares back of late.
As you can see in the chart, shares have gapped below their 50-day line and seem to be consolidating, having found support twice right around 700. Like many names on this list, Nvidia’s upcoming earnings report (May 22) could be a major event and determine whether the data center/AI/semiconductor theme pushes higher.
2. Nvidia (NVDA)
Nvidia, the inescapable chip and AI behemoth, hasn’t just been riding this tech stock wave, it’s arguably been fueling it, with shares up 200% in the last year and more than 600% since the October 2022 lows.
Shares are higher by 81% so far this year but topped out near 950 twice in March. Since then, the stock has been pulled lower by peer (and supplier) earnings reports and sector weakness, but shares have recovered their 50-day line and are holding near 900. The earnings report in late May will be make or break for the company, the sector, and possibly the Nasdaq.
3. Micron Tech (MU)
Micron is yet another computer equipment play and specializes in memory products like RAM and storage across a wide swath of industries, including graphics, industrial, automotive, consumer and device markets.
Shares are higher by over 40% so far this year, despite falling by 6% in the last month, and have doubled in the last year. While it hasn’t been quite the high-flyer that SMCI and NVDA have, MU is still highly levered to the ongoing build-out of data centers and the associated demand for compute. At the risk of sounding repetitive, any indications of rising (or falling) demand for server capacity in Nvidia’s earnings will likely tell the tale.
4. Western Digital (WDC)
Western Digital is another storage specialist that provides hard drives and solid state drives for a variety of uses, including personal computers, servers and gaming as well as flash drives for a variety of IoT, portable and wearable devices.
Like the other names on this list, shares have more than doubled in the last year after rising 37.3% YTD despite dipping 2.7% in the last month. The technical setup also looks a little healthier, with clear steps to higher levels before dips back to support at the 50-day line, although recent consolidation has broken that pattern. Shares also trade at only 11.5x forward earnings, which makes this the “cheapest” company on this list. Of the possible AI beneficiaries, WDC looks like it has a higher floor than the prior entries but is also likely to have a lower ceiling.
5. Leidos (LDOS)
While it’s not a pure-play AI name, Leidos is a beneficiary of the theme. The company is primarily a defense and intelligence firm that offers large-scale systems, command and control, data analytics and logistics to organizations like the DoD, NASA, and U.S. allies abroad, as well as civil aviation and health information management.
Shares have risen 36% so far in 2024 and 16% in the last month, and LDOS is the only tech stock on this list that hasn’t doubled in the last year. Shares are a little extended at the moment and would benefit from some consolidation as we saw from February through April. As a hybrid play on both improving AI and defense, LDOS is definitely worth keeping an eye on given the state of global conflict.
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