Forget Nvidia for now: these three tech giants are making big strides in hardware and software
Tech stocks are some of the most highly rated and valuable stocks across all industries. The tech sector has seen surprisingly steady growth driven by continuous innovation and fierce competition.artificial intelligence) and cloud computing, technology has never been bigger, and it’s expected to continue to grow at a tremendous rate for years to come.
meanwhile NVIDIA (Nasdaq:NVDAWhile NVIDIA is probably the most popular tech stock, these three competitors have established themselves in the industry and have proven their potential to compete with Nvidia. Their huge cash flows will help fund continued investments in platform and technology upgrades. Therefore, this will definitely pay off and show great value through solid returns to investors.
We’ll take a closer look at the latest developments from these companies’ R&D departments, their recent financial performance, and the smart investments they’re making that could put them in position to overtake Nvidia at the top of the tech ladder.
Microsoft (MSFT)
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Microsoft (Nasdaq:MSFT) has become one of the most popular tech stocks due to its overwhelming market share and phenomenal growth since last year. The software and hardware giant continues to stay at the forefront of top tech through its continued investment in ChatGPT, a leader in generative AI.
This allows Microsoft to work with one of the most cutting edge platforms and also gives them the means to implement ChatGPT’s advanced AI software across their applications. For Microsoft, this means the Office Suite, Bing, and even their notable cloud platform, Microsoft Azure, will all be upgraded with AI integration.
Microsoft’s new PCs also have special processing units suited to handling AI software and features — competitors like Nvidia and Apple use similar units and PC designs — but Microsoft has taken a lead in combining these capabilities into hardware and software.
Moreover, Microsoft’s latest earnings show that the company’s investments are paying off. Revenue increased 17% and profits increased 20%. The main products that saw the biggest sales growth were the ones that got all those AI upgrades: Office commercial products and cloud services saw revenue increase 13% and the cloud division grew 21%.
Indeed, this monster stock is attractively priced for investors looking to jump in now, and there’s no doubt the tech giant will continue to grow and solidify its position at the top of this competitive industry.
Amazon (AMZN)
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We all know Amazon (Nasdaq:Amazon) is known as a global e-commerce giant. But it’s also a top tech stock. The company has great diversity in its technology base and is poised for tremendous growth over the next few years. Amazon Web Services (Amazon) has secured Amazon’s dominance in cloud computing, but it’s not far behind in AI.
A look at Amazon’s latest earnings shows that this diversification has helped the company remain incredibly profitable and well-positioned for future growth. E-commerce is a stable revenue stream, and international revenue is up 10% year over year (Year-on-year changeBut other segments of Amazon show promising prospects as well.
Amazon’s cloud platform, AWS, brought in a staggering $25 billion in revenue, up $17 year-over-year. Its operating profit for the first quarter of 2024 is also expected to increase by more than $10 billion from the first quarter of last year.
Additionally, the company continues to invest heavily in AI: AWS is quickly becoming the place AI developers turn to to create AI-generated applications through its latest Amazon Bedrock software, and Amazon is spending billions of dollars on data centers around the world to ensure it can support its reliance on AI.
Some would argue that there’s never a bad time to buy Amazon, but now is a good time: The company maintains its dominance in e-commerce and cloud computing, and shows no signs of giving up its crown anytime soon.
Advanced Micro Devices (AMD)
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Advanced Micro Devices (Nasdaq:AmAMD is one of the tech industry’s most promising companies and Nvidia’s biggest rival. The company specializes in hardware and AI chips and has big customers across all segments of the tech industry, including PCs, gaming consoles, and cloud computing platforms.
Two of AMD’s largest customers are popular console developers Sony and Microsoft, responsible for two of the world’s best-known consoles, Playstation and Xbox. Their enormous popularity in the gaming industry provides ongoing profits for AMD.
In its most recent quarter, AMD reported a 9% increase in gross profit year over year, and its annual outlook calls for slow but steady revenue growth to close the year. To solidify its position at the top of technology, AMD is striving for excellence in AI chips.
Additionally, AMD launched the MI300X AI GPU this year, which has proven to be hugely popular and rated as the fastest in its category. This tech stock has huge untapped potential that investors won’t want to miss out on.
As of the date of publication, Joel Lim did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication guidelines.
