3 Tech Stocks to Buy on the Decline: August 2024

Technology stocks rose throughout 2024 due to increased investor attention to new and emerging technologies such as generative AI and cloud computing.

It has recently offered a large number of investment opportunities and still offers strong growth potential. However, due to a number of factors, including general economic uncertainty and the sharp decline in Japanese markets, which has largely affected global markets and raised fears for investors, an impressive number of US stocks have seen heavy selling recently. But they are starting to recover slightly, at least for the time being.

The tech industry as a whole has outperformed major stock indexes such as the S&P 500, which reported a 21% gain over the past year, while Technology Select Sector SPDR Fund (NYSEARCA:XLK), which is considered to be a benchmark for the technology industry, increased by 26%.

Below, I discuss three tech stocks that offer investors strong upside potential. Like many other companies, they have recently experienced a selloff, which opens up a strong entry point for investors looking for a discount on the strong buy stock.

AppLovin (APP)

Source: shutterstock.com/T. Schneider

AppLovin (NASDAQ:app) is a software business that monetizes content for its users. Its products include AppDiscovery, MAX and Adjust, which are all marketing platforms.

Over the past year, the stock price has doubled due to new product launches, strong earnings growth and increased attention from investors eager for AI-powered stocks. AppLovin’s share price recently fell 24%, but has started to recover in the past two weeks.

On August 7, AppLovin reported its earnings for the second quarter of 2024, saying that total revenue increased 44% and net income nearly quadrupled to $310 million compared to the previous year. The average payment per customer also increased year-over-year by 13%. For the third quarter, AppLovin expects revenue to be between $1.115 billion and $1.135 billion, compared to the previous estimate of $1.1 billion.

AppLovin provided investors with substantial growth. Its new advertising software, the Axon 2.0 engine, helps boost its advertising capabilities and provides AppLovin with a decent revenue stream.

Celestica (CLS)

Source: T. Schneider / Shutterstock.com

Celestica (NYSE:CLS) primarily manufactures electronic equipment for use in several industries, such as industrial, healthcare, aerospace and defense, and communications services.

Over the past year, its stock price has more than doubled due to very strong earnings growth and future prospects. Its share price recently fell by 30%, but has now started to recover towards its previous point before the market crash.

On July 24, CLS released its second-quarter 2024 earnings, saying total revenue rose 23% and net income rose 80% to $100 million year over year. It also raised its outlook for the full year 2024, anticipating revenue of about $9.45 billion.

Since 2021, Celestica has consistently beaten analysts’ earnings estimates, providing investors with a solid portfolio addition. It also offers strong growth potential in the technology industry.

Seagate Technology (STX)

Source: Sundry Photography / Shutterstock.com

Seagate technology (NASDAQ:STX) manufactures data storage products, primarily solid state drives (SSDs) and hard disk drives (HDDs). These products are used by individual users, but also have larger scale capabilities.

On July 23, Seagate reported results for the fourth quarter of fiscal 2024, which indicated that total revenue was up 18% from the previous year. A net loss of $92 million was reported for Q4 FY 2023, which moved to a net income of $513 million for the fourth quarter of FY 2024.

In the past year, its share price has increased by 45%. However, due to rapid selling by investors, its share price fell by 15%. In the last two days, however, it has started to increase.

STX beat earnings expectations and, with continued growth potential across its products, is in a very strong position. It also offers investors a decent dividend yield of 2.85% on an annual basis.

At the time of writing, Noah Bolton did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

At the time of publication, the responsible editor had (either directly or indirectly) no position in the securities mentioned in this article.