Investors holding a portfolio with lots of technology stocks in it are probably still feeling battered and bruised after a rough 2022. The Nasdaq Composite index, which has a bigger than average share of tech stocks in it, plunged 33% for the year as inflation and interest rates climbed. It was the worst annual performance since 2008.

A look back at the Nasdaq Composite's 51-year history shows that back-to-back losing years are incredibly rare. There have only been two instances since 1971. That suggests 2023 has a very good chance of ending with positive returns. It's also encouraging to note that the index has soared by 33% on average in the first positive year after a loss.

The broader tech sell-off was brutal for the following five stocks, but if history repeats for the Nasdaq, these five tech stocks could have a great 2023 too. 

1. Splunk: Down 57% from its all-time high

It's becoming clear that artificial intelligence (AI) and machine learning are going to play a big part in the future of business, and that's why Splunk (SPLK) makes this list. The company is a machine learning specialist with a host of high-profile customers, from Domino's Pizza to the McLaren Formula 1 racing team. 

Splunk's platform, which is now being supercharged by the cloud, is designed to ingest mountains of data in real-time to deliver actionable insights for its customers. These insights can alert businesses to technical issues, or even ways to improve sales through digital channels. In essence, Splunk turns noisy data into true value, and that's something all companies need in the digital age. 

Splunk is used by 90 of the Fortune 100 companies, and it has 764 customers spending $1 million per year. Its annual recurring revenue is set to top $3.6 billion by the end of fiscal 2023 (ending Jan. 31), but the company values its addressable opportunity at $100 billion, so it still has a long runway for growth. 

2. DigitalOcean: Down 77% from its all-time high

Cloud computing technology touches almost every aspect of the corporate world. Day-to-day operations are rapidly shifting online, and the cloud enables companies to do more with less -- especially smaller enterprises. DigitalOcean (DOCN 0.80%) is a provider of cloud services with a focus on start-ups and established businesses with under 500 employees, and it's competing with giants like Amazon Web Services and Microsoft Azure.

DigitalOcean offers solutions for data storage, web hosting, software development, and even video streaming. Its strategy is to beat its gigantic competitors on price, usability, and especially on service. Support is critical for small enterprises because they typically don't have dedicated technical teams. The leading cloud providers often overlook those needs because they make most of their money from large organizations. 

DigitalOcean serves 142,100 customers who are spending a minimum of $50 per month, and it's seeing consistent growth in retention and average revenue per user. It valued its addressable market at $72 billion in 2022, but it's expected to double to $145 billion by 2025, and given the company's annual recurring revenue is currently $641 million, it's still in the early innings of that opportunity. 

3. DocuSign: Down 81% from its all-time high

DocuSign (DOCU 1.56%) was a pandemic darling. As much of the world went into lockdown, digital technology reigned supreme, and DocuSign's electronic signature software kept the business world moving. The company expanded into new verticals, including contract lifecycle management through its Agreement Cloud, and while its stock is down significantly from its all-time high, it might be gearing up for a comeback.

The Agreement Cloud includes a portfolio of applications that can help businesses prepare, negotiate, and manage contracts entirely digitally. It even uses a splash of artificial intelligence through its Insight platform, which is designed to scan agreements for problematic clauses and potential opportunities. DocuSign says its tools are deployed in 13 different industries, and it currently serves over 1 billion users worldwide with 1.32 million paying customers. 

DocuSign is expecting to generate $2.49 billion in revenue for fiscal 2023 (ended Jan. 31), which would represent modest growth of 18.9% compared to fiscal 2022 as pandemic tailwinds continue to cool off. But the business world is trending in DocuSign's direction over the long term, and with its opportunity valued at $50 billion, it has only penetrated a fraction of the market. 

4. Lemonade: Down 90% from its all-time high

Nobody really likes dealing with their insurance company, especially when it comes to making a claim. The process can be frustrating and lengthy, but that's part of the customer experience Lemonade (LMND 8.23%) is trying to improve. It uses AI to write quotes in under 90 seconds and pay claims in three minutes without human intervention across its five insurance products: renters, homeowners, pet, life, and car. 

Lemonade also uses AI in other parts of its business. Its latest Lifetime Value 6 (LTV6) model is used to predict customer behavior to price premiums, and it can also identify underperforming geographic markets (and products) to allow the company to pivot quickly and generate more revenue. 

The company is growing rapidly. In the third quarter of 2022 (ended Sept. 30), Lemonade's in-force premium soared 76% year over year to $609 million, and its revenue more than doubled. It now serves over 1.77 million customers who are spending record amounts of money on Lemonade's products, but the best might be yet to come because insurance is a trillion-dollar opportunity in the U.S. alone. 

5. C3.ai: Down 91% from its all-time high

By this point, it's possible you've noticed most of the companies in this piece use AI in some way. C3.ai (AI 3.52%) might be the biggest opportunity of the bunch, as it aims to dominate enterprise AI, which is an industry it helped create. 

C3.ai sells ready-made and customizable AI applications to 236 customers. These applications help companies access the benefits of AI even if they don't have the internal resources to build their own models from scratch. The spread of industries seeking this technology is diverse and includes oil and gas, financial services, manufacturing, and defense, to name a few. 

But C3.ai also forged partnerships with the cloud divisions of tech giants like Amazon, Microsoft, and Google parent Alphabet. Those providers use C3.ai's applications to deliver better AI solutions to their own customers, and as such, the partnerships involve joint-selling ventures. 

C3.ai is a $1.6 billion company chasing an opportunity it estimates will be worth $596 billion by 2025. It's currently undergoing a drastic change to its revenue model, which could set it up for a future of supercharged growth. In any case, after a 91% decline in its stock price from its all-time high, it's trading near a rock-bottom valuation which might spell opportunity for investors.