Salesforce.com (CRM), Apple (AAPL), Microsoft (MSFT) and Intel (INTC) surged in the second quarter to emerge among the top five Dow Jones stocks of 2023 so far. American Express (AXP) also made the cut.
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Tech stocks have fueled the stock market rally this year. And upbeat economic data continues to ease recession fears, despite higher interest rates.
Salesforce stock, the No. 1 stock in the Dow Jones, and Microsoft, at No. 3, stand to gain from the boom in artificial intelligence, or AI, stocks.
Apple, Microsoft and Salesforce stocks each have composite ratings above 90. The IBD composite score, which ranges from 1 (worst) to 99 (best), provides instant insight into a stock based on a combination of metrics fundamentals and techniques.
Salesforce Inventory
Salesforce shares are up 59.3.7% year-to-date, making it the best of the best Dow Jones stocks so far this year. In the second quarter, CRM stock rose 6.8%.
Salesforce stock topped alternative entries at 194.01 and 200.10 in March and early May, respectively.
This AI game has a composite rating of 96. Its EPS index is 98. Salesforce stock also belongs to the IBD 50 list of top growth stocks.
On June 12, Salesforce announced AI Cloud to bring generative AI to its enterprise customers.
Salesforce’s existing Einstein AI software cloud platform helps sellers predict which deals are most likely to close using artificial intelligence.
Apple broth
Shares of the iPhone maker are up 49.3% so far this year. This includes a 16.7% jump in Q2.
On June 30, AAPL stock hit a record high of 194.48, surpassing a market capitalization of $3 trillion for the first time. It continues to hold well above a buy point of 157.38.
Apple stock has a composite rating of 93 and an EPS rating of 80.
The tech giant has emerged as a leader in software technology thanks to a robust app ecosystem, analysts say.
Additionally, the upcoming iPhone 15 is expected to generate strong demand as many buyers have been keeping their phones for years.
Microsoft share
Microsoft shares are up 42% so far this year. This includes an 18.2% gain in Q2.
Microsoft stock has a composite rating of 97. Its EPS index is 91.
Startup OpenAI’s ChatGPT is one of many “generative AI” technologies that could disrupt a host of industries by creating text, images, video, and programming code on their own.
Microsoft continues to leverage its strategic stake in OpenAI.
Generative AI technology is already finding uses in marketing, advertising, drug development, video games, customer support, digital art and more.
Intel Stock
Intel shares are up 26.5% so far this year. This includes a 2.1% gain in Q2.
Unlike the other stocks on this list, INTC stock is far from all-time highs.
Intel stock offers a buy point of 33.84 from a low, according to charts from MarketSmith.
The company’s turnaround plan is to become a chip foundry similar to Semiconductor manufacturing in Taiwan (IBD). Investors continue to scrutinize the strategy.
Although it lags behind its peers, Intel has a “hardware AI opportunity,” Morgan Stanley analysts said in June. They added that its Habana Labs/Gaudi specialty silicon could lead to a “material” inflection in revenue next year.
American Express stock
Shares of American Express are up 17.9% so far this year. AXP stock consolidated for much of the second quarter, generating a 5.6% gain.
American Express stock is showing a buy point of 177.04 from a cup-with-handle base, according to IBD MarketSmith. Stocks are arguably exploitable by breaking a downtrend in the handle. The pattern formed around the 50-day moving average.
The payment stock holds a composite rating of 85 and an EPS rating of 58.
American Express has seen a huge increase in consumer travel and entertainment spending after the easing of pandemic shutdowns. Now spending is slowing, which is negative for credit card issuers, analysts warn.
Dow Giant Goldman Sachs (GS) is in talks with American Express to take over its Apple credit card, bank account and other businesses, according to multiple reports late Friday.
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