Technology stocks made the cut for the best performers in 2023, while a cruise company sails forward.

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Nvidia (+246%)

The $1 trillion unicorn. Nvidia’s rise in 2023 was not expected to be honest. In 2022, investors were already pricing in a downturn in the tech cycle due to the saturation of the smartphone market. But something big happened. ChatGPT burst onto the scene, and the demand for semiconductor chips for AI technology boomed.

Sales more than tripled from US$5.9 billion as of 31 Oct 2022 to US$18.1 billion as of 31 Oct 2023. This was propelled by the rise of AI-related chip sales at US$14.5 billion. The market has Nvidia at a target price of US$668 for an upside of +35%.

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Meta (+184%)

It seems like Meta is getting the better of Alphabet (+58%). But Meta struggled mightily in 2022 as it declared big losses from its VR segment. So, it is not surprising that the recent positive string of quarterly results drove Meta’s share price up. Its 3Q 2023 results indicated that revenue grew by 23% from a year ago and beat expectations. Its advertising segment was the main driver which investors took positively as it meant that Meta’s core business is still going strong.

Market analysts have Meta at a target price of US$382, implying an upside of +8.0%.

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AMD (+130%)

Another chip company riding the AI boom. AMD flew high in tandem with Nvidia (+246%) in 2023 as it provides products and services for the data centre, gaming and personal computer (PC) industries. Profits quadrupled from US$66 million in 3Q 2022 to US$299 million in 3Q 2023.

Market analysts have AMD at a target price of US$136, with an OVERWEIGHT call.

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Royal Caribbean (+166%)

Time to set sail. And that has never been more true for Royal Caribbean. The cruise company fully opened its operations in 2023 as everyone clamoured for a holiday. And the results have been strong. Revenue grew by a quarter from US$3.0 billion in 3Q 2022 to US$4.2 billion in 3Q 2023, while profits rose from a measly US$33 million to US$1 billion over the same period.

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Tesla (+130%)

Tesla faces stiff competition from Chinese electric vehicle (EV) companies but it still seems to be the market leader. According to Tesla’s ESG report, Tesla ranks first, followed by BYD, VW Group, and Hyundai. Tesla’s revenue growth has been steady at 9.3% in 3Q 2023, but profits have declined by almost half to US$1.9 billion due to a rise in battery material cost.

The target price for Tesla is at US$241.