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Technology Sector Set to Outperform in 2024, AI and Cybersecurity Stocks Among Top Picks\n\nAs we approach 2024, the technology sector is once again expected to outperform, with a focus on artificial intelligence and cybersecurity stocks. According to Barclays, the second year of the generative AI boom will bring a reality check for the industry, with companies expanding use cases and mitigating risk. This presents a unique opportunity for investors to look beyond the usual tech giants and consider lesser-known plays.\n\nBarclays senior technology hardware and networking analyst Tim Long believes that the industry has yet to see the full potential of AI. With higher interest rates and fears of a spending pullback, the sector has lagged behind the broader tech rally this year. As companies increase their spending on cybersecurity to protect against the threats posed by AI, the gap in performance is expected to narrow.\n\nBarclays senior software analyst Saket Kalia sees cloud security and secure access service edge (SASE) as top investment themes for 2024. His top picks include CrowdStrike and Gen Digital. CrowdStrike, with its strong free cash flow support and diversification of business, has seen a 150% increase in share price this year. Gen Digital, with its impressive operating margin and palatable valuation, is also a top pick for the Barclays team.\n\nIn addition to pure cybersecurity plays, Barclays’ Long believes that Arista Networks is a top pick amid the AI craze. As the leading AI play, Arista Networks provides switches and routers for data centers, which are crucial for AI operations. The company’s share price has seen a 95% increase this year, outpacing rivals Juniper Networks and Cisco.

” Technology Sector Set to Outperform in 2024, AI and Cybersecurity Stocks Among Top Picks\n\nAs we approach 2024, the technology sector is once again expected to outperform, with a focus on artificial intelligence and cybersecurity stocks. According to Barclays, the second year of the generative AI boom will bring a reality check for the industry, with companies expanding use cases and mitigating risk. This presents a unique opportunity for investors to look beyond the usual tech giants and consider lesser-known plays.\n\nBarclays senior technology hardware and networking analyst Tim Long believes that the industry has yet to see the full potential of AI. With higher interest rates and fears of a spending pullback, the sector has lagged behind the broader tech rally this year. As companies increase their spending on cybersecurity to protect against the threats posed by AI, the gap in performance is expected to narrow.\n\nBarclays senior software analyst Saket Kalia sees cloud security and secure access service edge (SASE) as top investment themes for 2024. His top picks include CrowdStrike and Gen Digital. CrowdStrike, with its strong free cash flow support and diversification of business, has seen a 150% increase in share price this year. Gen Digital, with its impressive operating margin and palatable valuation, is also a top pick for the Barclays team.\n\nIn addition to pure cybersecurity plays, Barclays’ Long believes that Arista Networks is a top pick amid the AI craze. As the leading AI play, Arista Networks provides switches and routers for data centers, which are crucial for AI operations. The company’s share price has seen a 95% increase this year, outpacing rivals Juniper Networks and Cisco.”$CRWD2023-12-20T06:32:25.899Z

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