Tech Stocks Are on the Move: 2 That May Actually Be Worth the Hype

Shopify stock is one of the Canadian tech stocks to watch as the growth trade recovers in the second half of 2023.

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It’s been all about tech stocks this year, with the Nasdaq 100 soaring a staggering 38% year to date, leaving the value- and energy-heavy TSX Index, up just shy of 3%, behind. Indeed, when the risk appetite goes up, beaten-down high-growth tech stocks tend to outpace almost everything else in the market.

As we head into the second half of 2023, we’ll get to see what the market’s next move is as rates begin to slow. The Bank of Canada recently hiked by 25 bps, but the U.S. Federal Reserve stood pat. Though the Fed could start raising again in the second half, I do think the latest move by Chairman Jerome Powell is encouraging, especially for the rate-sensitive tech trade.

Only time will tell how much AI and AR will propel the stock market. Some may think it’s too late to make big money from the trends. Though it’s hard to tell when the tech-fuelled bounce will exhaust itself, I’m certainly in the camp that thinks this narrow market rally will broaden out such that value stocks may begin to pick up the pace.

That doesn’t mean tech will be in for a substantial pullback, though. Depending on which tech stock you look at, shares are likely still well off their all-time highs. The 2022 tech-driven sell-off has reversed course in a hurry this year. And we could see more of the same, even if value begins to flex its muscles again. Just because the market broadens out doesn’t mean there are no gains left to be had in the tech plays.

Let’s look at two TSX tech stocks that may have room to run.


Shopify (TSX:SHOP) is one of the Canadian market’s top performers, with shares now up 80% year to date. That’s a substantial run, but I still do not view the name as overvalued. If anything, it’s still a historically cheap momentum play that could add to its gains in the second half, as the firm looks to continue making changes to operate in this more challenging macro environment.

The $112 billion e-commerce darling may be up against it, but it certainly has the talent to take share in the booming physical and digital retail space. In that regard, Shopify stands out as one of the names that younger investors should prefer as the tech trade heats up again.

Realistically, I think Shopify stock could end the year above $100. The easy gains have been made, but there’s still upside as gloom turns to hope.


Nuvei (TSX:NVEI) is a Montreal-based payments company that Ryan Reynolds has been touting of late. Indeed, Reynolds may be smart with money, but investors know that it’s never a good idea to follow a celebrity into or out of an investment. Though Nuvei is a great Canadian company with unique tech talents, there’s no excuse for not putting in the due diligence.

It’s been a rough ride for Nuvei stock. Shares have crumbled 33% off their 52-week highs to $39 and change per share. The tech stock is hard to value. At just shy of five times price-to-sales, one could argue Nuvei is a reasonably priced play that’s on the right side of innovation. Given the magnitude of competition in payments, though, it’s tough to draw a line in the sand. Regardless, Nuvei has been winning new clients at an impressive rate.

If you’re a young investor with a stomach for volatility, perhaps Nuvei is a name to keep an eye on. Though I wouldn’t put on a sizeable position here, I’d not be afraid to nibble into a small position (say $300–500) now and over time.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei and Shopify. The Motley Fool has a disclosure policy.

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