Technology stocks shine with impressive gains in 2024

Technology stocks achieved a resounding success in 2024 and rank among the top performers in both the S&P 500 and the Dow Jones Industrial Average. The biggest winners are Palantir Technologies and Nvidia, both benefiting from the artificial intelligence boom. Investors are excited about the potential of technology to make companies more efficient and produce groundbreaking products. The growth potential of AI does not seem to be exhausted yet. Analysts predict that today's market value of $200 billion could grow to $1 trillion by the end of the decade. This means that stocks from the AI sector should continue to drive growth in the future, making the present a favorable time for investment. Preferred are stocks that not only operate in the AI sector but also demonstrate growth in other areas to avoid dependency on a single industry. Those who can allocate $50,000 across different stocks should consider the four titles mentioned below. However, investments are also possible with smaller amounts. Those who have not yet diversified their portfolio across different sectors should invest only part of their capital in the technology sector and the rest in high-quality stocks from other sectors. Diversification is crucial because it can mitigate risk; if one industry or stock underperforms, others could compensate. Now to the promising stocks that are currently worth acquiring. Meta Platforms invested heavily in AI in 2024, making it the largest investment of the year. The company is better known for its social media platforms like Facebook, Messenger, WhatsApp, and Instagram. Thanks to its market dominance, Meta has generated billions in revenue and profit through advertising, as advertisers target their audiences on these popular apps. Initially established as a giant in social media, AI now offers the opportunity to accelerate growth at Meta. The company plans to develop AI assistants that cater to all users, encouraging them to spend more time on the apps and thus motivating advertisers to increase their spending. Currently, Meta shares are particularly interesting, as they are fairly valued with a price-to-earnings ratio of just 27 based on expected earnings. For a company with a solid earnings history and the potential to enter a new growth phase thanks to AI, this appears attractive.