S&P 500: Nvidia Stock Got Away? Analysts Think These Techs Will Rally Next Separator Site title Separator Site title

If you don’t own the biggest S&P 500 tech stocks, like Nvidia (NVDA), you’re missing out on the year’s monster rally. But ETFs let you still take part of tech’s run without choosing the next absolute winners.

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You might think every tech stock soared already this year — after all chipmaker Nvidia just hit a market value of $1 trillion. But plenty of tech stocks are still waiting their turn. More than 15% of the 85 stocks in the S&P 500’s information technology and communication services sectors are actually down this year. And analysts think these stocks are overlooked gems — and are calling for all of them to rise by an average of 35% in the next 12 months, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.

Analysts bet the climate for S&P 500 tech and tech ETFs is brighter thanks to the Federal Reserve’s decision to keep short-term interest rates where they are. That helps keep the economy strong enough to fuel investment in emerging areas like AI.

“We continue to strongly believe that with the Fed now coming to the end of its historical rate hike cycle, inflation rapidly cooling, and rate cuts in the foreseeable future the Street is seeing the forest through the trees to identify the tech winners and share gainers in this next fourth Industrial Revolution,” said Dan Ives, analyst at Wedbush.

S&P 500 Tech Rally Outcasts

What kinds of S&P 500 tech stocks are getting left out of the rally? Former S&P 500 champion Enphase Energy (ENPH) is one. The company makes many of the semiconductor based devices needed for solar energy. Shares, though, are down by roughly a third this year — while the Nasdaq 100 is up roughly 35%.

Analysts, though, think Enphase’s participation in the tech rally is only a matter of time. They’re calling for the stock to gain 42% over the next 12 months. And there are profits to back that claim up. Analysts think Enphase’s earning per share will rise 20% this year and 34% next year. But rather than loading up with Enphase, investors can hedge their bets by owning tech ETFs…

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