There could still be further gains ahead for tech stocks, even as the sector boosted the S & P 500 to a new record closing high last Friday. After kicking off the new year with a lukewarm start, the technology sector turned the ship around, largely driven by the ongoing artificial intelligence frenzy . Like the broad market index, the information technology sector closed at a record level on Friday, gaining 2.35% in the day’s trading session and more than 4% last week. Despite these gains, broader analyst consensus indicates that there are still tech stocks poised to go higher from here. CNBC Pro screened for the members of the S & P 500 tech sector that have a consensus buy rating and an upside of 15% or more to their average analyst price target. One name on the list is software giant Oracle , which has a potential upside of 15.5% to its average analyst price target. Last week, Deutsche Bank listed the stock as one of its top two cloud picks for 2024. “We see the multiple recovering and the stock steadily making its way out of the penalty box in 2024,” wrote analyst Brad Zelnick. Additionally, he highlighted a cloud database services migration opportunity for the company that could be worth around $50 billion, alongside potential growth in Oracle’s “market leading” back-office application products. The stock has already popped 4.7% this year. On Semiconductor was another name that made the list, with consensus estimates showing that the semiconductor manufacturer could rally another 19.5% on average. Shares have slid 10% so far this year. Still, the stock could be a beneficiary of auto industry semiconductor demand in 2024 , according to KeyBanc Capital Markets analyst John Vinh. Likewise, analysts on average think that design software company Synopsys could rally another 18%. Last week, the company announced it would acquire engineering simulation software company Ansys in an approximately $35 billion deal . Pending regulatory and shareholder approval, the deal is expected to close in the first half of 2025. Synopsys stock has rallied more than 4% this year. Other well-liked names that made the list include technology solutions providers Jabil and Trimble . On average, analysts see the two stocks rising 20% and 15.4%, respectively. — CNBC’s Fred Imbert contributed to this report.
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