On Wednesday, while emerging tech stocks recorded an average increase of 9.3%, the “Magnificent Seven” posted a modest 1.1% gain, Munster added. 

Munster suggested that given the recent strength of the technology sector, there might be a potential sell-off. However, he remains optimistic about sub-$50 billion tech stocks in 2024, even if the Federal Reserve doesn’t cut interest rates. 

“A stable interest rate environment will allow investors to feel safer in returning to some of the 2021 darlings,” he added.

See Also: Best Tech Stocks Right Now

Stock Picks To Play The Trend: Benzinga screened a handful of tech stocks with sub-$50 billion market capitalization and fairly positive fundamentals using the following criteria:

• Market cap between $300 million and $50 billion
• Average trading volume over 500,000
• Stock Price over $5
• Profitable
• Average analysts’ recommendation of Buy or better
• The upside potential of over 20% (based on analysts’ average price target)

Allegro MicroSystems, Inc. (NASDAQ:ALGM): Manchester, New Hampshire-based Allegro is a provider of power and sensing solutions for motion control and energy-efficient systems. Its end markets include advanced mobility, green energy, and factory automation.

Axcelis Technologies, Inc. (NASDAQ:ACLS): Axcelis provides tools and process expertise to form the transistors that power all electronics, namely smartphones and laptops, cameras, personal music players, and more.

GLOBALFOUNDRIES Inc. (NASDAQ:GFS): Malta-New York-based GlobalFoundries is a contract manufacturing and design company created by the divestiture of the manufacturing arm of AMD. Following the divestiture, it was owned by UAE sovereign wealth fund Mubadala Investment Company until its initial public offering in October 2021.

Sensata Technologies Holding plc (NYSE:ST). Sensata supplies sensing, electrical protection, control, and power management solutions and has operations and business centers in 13 countries.

Extreme Networks, Inc. (NASDAQ:EXTR): It is a cloud-networking company focused on delivering services that connect devices, applications, and people in new ways. The company leverages the powers of machine learning, artificial intelligence, analytics, and automation.

The Technology Select Sector SPDR Fund (NYSE:XLK) rose 0.41% to $191.99 in premarket trading on Thursday, according to Benzinga Pro data

Read Next: Google, Meta, Qualcomm: What’s Brewing Behind Their Unseen Tech Coalition?

Image via Shutterstock