The Nasdaq Composite index is up by around 18% in 2024 and has made a fresh record high in July 2024. Not surprisingly, many technology stocks, especially the giants, saw impressive gains.

However, the technology-heavy index showed some weakness in the week ending July 19. Investors have been rotating out of mega-cap technology stocks into smaller companies after a soft U.S. inflation report for June increased the possibility of upcoming interest rate cuts. Investors are also concerned about the Biden administration potentially imposing tougher trade restrictions on China, which can adversely affect the technology titans.

In such a macroenvironment, a few technology companies still offer impressive upside potential in the long run due to their sound fundamentals and robust financials. The current price weakness can also be an attractive entry point for investors. Here's why these are compelling picks for astute investors.

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Source Fool.com