If you don’t want to miss out on big gains, add these tech stocks to your portfolio
The technology sector is extremely hot right now.
of Nasdaq and S&P 500 Technology companies are reaching new heights with artificial intelligence (AI).artificial intelligence) is making a lot of noise and putting a lot of money into it. The generation AI industry is predicted to be a $1.3 trillion economy by 2030. If you’re not investing in must-have tech stocks, you could be missing out on some big gains.
meanwhile NVIDIA (Nasdaq:NVDA) remains one of the industry leaders. But there are plenty of other tech stocks worth adding to your portfolio. Let’s take a look at seven tech stocks you should definitely buy this year.
Nvidia (NVDA)
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If you followed my recommendation and bought Nvidia in 2022, you would have made a huge profit today. But the company’s stock price appreciation makes it still worth buying.
The huge gap between the demand and supply of AI chips is helping Nvidia soar to new heights. The AI boom will propel Nvidia into rapid growth. The current share price after the stock split is $131. If you thought Nvidia was too expensive, now is the time to act.
Nvidia, the world’s third most valuable company, reported a strong quarter that sent its stock price soaring. The company’s revenue grew 262% year over year (Year-on-year change) to $26 billion, beating analyst expectations.
Data center revenue grew 427% year over year to $22.6 billion, the company also raised its dividend this quarter, and is building the right momentum heading into 2024. Nvidia is a buy and hold stock for the long term.
Advanced Micro Devices (AMD)
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Nvidia’s biggest rival Advanced Micro Devices (Nasdaq:Am) is doing well. Its shares are up 15% so far this year and 25% over the past 12 months. Trading at $158 a share, it looks undervalued and could hit $200 in the next quarter.
AMD sees a strong business driven by AI and has the potential for significant upside going forward. While it’s unlikely AMD will be able to take market share from Nvidia, it will continue to grow strongly, but not as fast as NVDA.
The company is also expanding its product lineup, recently announcing a new AI graphics processing unit and AI chip, the MI325X accelerator, which will be available from the fourth quarter of this year.
Additionally, the company unveiled its MI350 chip series, due for release next year, which it says will deliver a 35x improvement in inference power. Investors shouldn’t doubt AMD’s AI capabilities, as the company has proven its tech capabilities in the past.
Recent earnings show that the company is performing well, with data center revenue up 80% year over year. Buying AMD now is a smart move, and the company’s stock price could soar in the coming quarters.
Alphabet (GOOG, GOOGL)
Industry Leader alphabet (Nasdaq:GoogleNasdaq:Google) is a stock to buy at any opportunity. The stock is trading at $177 and is up 26% year to date (YTD), up 32% over the past six months. It’s an unstoppable stock that seems undervalued. Plus, its two segments, search engine and YouTube, are steadily growing revenue.
The company reported $9.6 billion in revenue from Google and $8.1 billion from YouTube. Outside of these two segments, it has a range of products and services that help boost its cash flow.
The company commands 90% of the search market, and advertisers are happy to reach a huge number of users through Google Search, and the company is also experimenting with new ad formats in search.
An ideal blue chip stock under $200, Alphabet boasts strong free cash flow and has declared a dividend of $0.20 per share. Considering the current and past performance of this stock, adding Alphabet to your portfolio this year will prove to be ideal. You will never regret owning this stock.
Palantir Technologies (PLTR)
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Artificial Intelligence Platform (Australia IP) 2023, Technology companies Palantir Technologies (New York Stock Exchange:P.L.T.R.) is doing well. They provide bootcamps to organizations that convert leads. AIP allows companies to deploy language models at scale across their networks.
The success of these bootcamps was reflected in strong financials: Palantir saw impressive growth in its commercial business, with first-quarter revenue up 21%; PLTR ended the quarter with $634 million in revenue, and investors now have very high expectations for the company.
Additionally, Palantir has been in the industry for over 20 years, providing services to government organizations. As one of the most trusted and reliable companies in the country, Palantir strikes a good balance between government and commercial clients.
PLTR shares are trading at $23 and are up 40% year to date, poised to soar, as billionaires bought up the stock in the first quarter and are primed for long-term growth.
Microsoft (MSFT)
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My favorite tech stocks Microsoft (Nasdaq:MSFT) is a great addition to your portfolio before it hits new highs. Trading at $442, the stock is up 19% year to date and has the potential to rise further. Microsoft is a timely investment. Open AI The results are already coming, as the company invests billions of dollars in developing a global AI infrastructure.
Microsoft is one of the best tech giants and a safe and reliable investment with steady earnings growth and a 0.68% dividend yield. The company has announced the launch of its AI-powered Copilot PCs and laptops, which could become the best computing products on the market in the near future.
The company’s cloud computing business is growing rapidly, and many analysts are very bullish on the stock. Azure revenue grew 21% year over year in the most recent quarter. With stable free cash flow and a solid balance sheet, Microsoft is a well-established company to own until retirement.
Oracle (ORCL)
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Trading at $139, Oracle (New York Stock Exchange:Orks) shares are up 34% year to date and have been trending higher since the company recently reported strong earnings. It has outperformed the S&P 500 since the start of 2024 and is expected to continue to rise. The company’s cloud infrastructure division saw sales grow 42% to $2 billion and earnings per share of $1.63.
Oracle has been in this business for years now, but I believe the best is just beginning. A key metric is remaining performance obligations of $98 billion, up 44% year over year, a good sign the company will continue to grow profitably through the quarter.
Oracle, one of the biggest players in the AI race, is making slow but steady progress. The company is building 100 data centers and partnering with industry giants including Microsoft. Its recent partnership with OpenAI has boosted its stock price, and it has a dividend yield of 1.14%.
Meta Platform (META)
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Meta Platform (Nasdaq:Meta) has recovered, but how? From a low of $90 in November 2022 to $504 today. The stock is up 45% year-to-date and 51% in the past six months. Strong first-quarter results have helped drive the stock price higher. Additionally, the company’s cost-cutting measures are paying off.
The company reported impressive user growth metrics, with daily active users increasing 7%, reaching 3.24 billion daily active users at the end of the first quarter. Meta Platforms stands to benefit as companies spend more on advertising efforts. Social media continues to be a key component of business, leading to increased revenue.
The company has the potential to become a massive social media giant in the coming years, with most of its revenue coming from advertising. The company has made huge losses so far, so its metaverse ambitions may cut into profits a bit, but CEO Mark Zuckerberg thinks it could become a huge business one day. While we wait for that to happen, it’s time to profit from META’s growing advertising business.
As of the publication date of this article, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are solely those of the author, which is subject to InvestorPlace.com’s copyright. Publication guidelines.
