Almost daily the S&P 500 index sets a new high, driven by increasing optimism about the growth prospects of the U.S. economy and cooling inflation in 2024.

Many growth stocks, especially technology stocks, have played a key role in this rally. In an improving macroeconomic environment, many high-quality growth stocks can continue to rise in 2024. Here's why Advanced Micro Devices (AMD 2.37%), CrowdStrike (CRWD 2.03%), and Salesforce (CRM 0.42%) fit the bill and can prove attractive picks now.

Advanced Micro Devices

Advanced Micro Devices, a prominent semiconductor maker, has been a major beneficiary of businesses shifting to cloud-based services. Subsequently, data centers have increasingly used the company's third-generation and fourth-generation EPYC server processors to fulfill rising demand for high-performance computing and enterprise data storage.

Notably, Mercury Research claims that AMD's market share in server CPUs has increased by 5.8 percentage points year over year to 23.3%, while revenue share grew 1.7 percentage points year over year to 29.4% in the third quarter.

Another reason to favor AMD is the recent launch of its next-generation Instinct MI300 graphics processing units (GPUs), chips with 50% more memory bandwidth than Nvidia's H100 AI chip, specially tailored for AI workloads in the cloud and for enterprise AI applications. The company has projected MI300 sales to surpass $2 billion in 2024.

Furthermore, the company has been focusing on upgrading its ROCm (Radeon Open Compute) software stack to optimally program MI300 chips for complex tasks. AMD expects the AI infrastructure market to grow annually by 70% for the next four years, reaching more than $400 billion by 2027. Coupled with the ongoing supply shortage of AI chips, MI300 could prove to be a major growth catalyst for AMD in the long run.

CrowdStrike

In an environment where cyberattacks have become more frequent, sophisticated, and costly, organizations are increasingly opting for a comprehensive, integrated security platform instead of multiple fragmented solutions from different vendors. Plus, with organizations opting for cloud computing, demand for cloud security solutions is also rising.

CrowdStrike's Falcon platform, encompassing 27 modules, has benefited significantly from these trends. The company offers solutions for endpoint security, cloud security, identity protection, observability, threat intelligence, and data protection. Notably, the company surpassed the $1 billion sales milestone in the Amazon Web Services marketplace in the third quarter of fiscal 2024 (ended Sept. 30), highlighting its success in the rapidly growing cloud security market.

The Falcon platform is known for its high scalability, ease of deployment, and AI-driven capabilities, which have helped build a sticky customer base. The company is also successfully cross-selling to its existing customer base, with 63% of subscription customers using five or more Falcon modules in the third quarter, up from 60% in the previous year.

CrowdStrike's partner ecosystem is also helping dramatically with attracting new clients, with 62% of all new clients in the third quarter being partner-sourced. Finally, the company's AI-driven Threat Graph, which processes trillions of cyberthreat-related data signals weekly, helps improve the Falcon platform. This creates a virtuous cycle of platform improvement and customer growth.

All these tailwinds are making CrowdStrike a compelling pick in 2024.

Salesforce

Salesforce, a titan in the cloud-based customer relationship management (CRM) sector, has benefited dramatically from enterprises increasingly opting for cloud-based solutions, especially those needed to streamline sales, marketing, and customer service processes. While the shares gained nearly 100% in 2023, there are still many reasons to like the stock now.

First, Salesforce's focus on industry clouds or industry-specific cloud solutions is proving to be a major tailwind. Nine out of 13 industry clouds saw more than 50% year-over-year growth in annual recurring revenue in the third quarter. The company also reported an 80% year-over-year rise in deals of more than $1 million in the third quarter.

Second, Mulesoft, an integration platform used by clients to connect data, devices, and applications across on-premise and cloud environments, is also showing remarkable momentum. In the third quarter, Mulesoft had a 142% year-over-year increase in automated flows.

Third, Einstein AI, a collection of AI technologies and services available on the Salesforce platform, is also a major growth catalyst. It helps users in multiple ways, such as making customized predictions and recommendations for business insights, aiding in tasks like customer service and data analysis, and facilitating interactive and intuitive user experiences.

Einstein is now been processing nearly 1 trillion transactions every week. Plus, the recently launched generative AI-powered assistant Einstein Copilot has garnered significant interest, with 17% of Fortune 100 customers already using this feature.

Finally, Salesforce is working to shift its focus from acquisition-fueled revenue growth to a balance of revenue and profitability. Recently, there have been reports of the company laying off around 1% of its workforce to counter the aggressive post-pandemic hiring. Considering Salesforce's strong growth drivers, the company seems an impressive pick for 2024.