These tech stocks offer safe harbors if the sector sell-off continues

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Investment Strategy News

Stock Markets,NVIDIA Corp,Russell 2000 Index

A group of technology stocks could weather the storm better than others as investors continue rotating into smaller and mid-sized companies.

Some large-cap tech stocks are likely to fare better than others if investors continue to move into smaller companies. Artificial intelligence-adjacent mega-cap tech titans have been the driving force behind the current bull market rally, which began last October. Nvidia — with a market value above $2.9 trillion — has soared 136% this year alone, after climbing 239% in 2023.

Analysts see potential price upside of 10% in AI-adjacent stock ServiceNow . The cloud platform provider has rallied 15% in 2024. Last Thursday, ServiceNow surged more than 13% after posting earnings that exceeded analyst expectations . The company also raised its subscription revenue forecast for the full year. Following ServiceNow's earnings beat, Mizuho raised its price target for the company to $850 from $820.

 

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