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On July 13, 2024
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3 Red-Hot Growth Stocks to Buy in 2024 and Beyond | The Motley Fool
These stocks have been beating the market so far this year, and they could keep right on beating it. The stock market broadly has had an excellent year so far -- the S&P 500 is up 17%. Naturally, some hot stocks have outpaced that growth, and while it might seem counter-intuitive, some of the stocks with big gains already behind them could still be among the best places for investors to deploy their investing dollars now. Here are three growth stocks that have outpaced the market year to date, but that also have strong competitive positions that make them worth buying today and holding well into the future. Since artificial intelligence (AI) has become the hottest topic on Wall Street, much of the attention has been on high-end semiconductor companies like Nvidia, which have been putting up eye-popping results quarter after quarter. However, investors shouldn't forget that Microsoft (MSFT -0.25%) is at the forefront of the AI boom due in large part to its investment in OpenAI, the company behind ChatGPT. Microsoft has already added AI features to several of its products, and because of the reach of its product suite, many consumers have already started to see them in action. For example, the Copilot tool that it has added to productivity applications such as Word, Excel, and PowerPoint can help users draft documents and analyze data more easily. AI is impacting Microsoft's business in other ways as well. In its most recently reported fiscal quarter, revenue from its Azure cloud unit increased by 31% year over year, with 7 percentage points of growth coming from AI alone. Overall revenue grew by 17% to $62 billion, while earnings per share increased by 20%. Microsoft is a leader in the software and cloud infrastructure space, and its AI investments are likely to strengthen its position for years to come. At first, it seemed like Apple (AAPL 1.30%) was behind when it came to AI. While other tech companies were garnering headlines for their AI-related activities, there wasn't much news coming from the iPhone maker. That all changed last month when it held its annual developer conference, where it unveiled Apple Intelligence, which will roll out later this year. What's most important about Apple's foray into AI is how it will reinforce its ecosystem. Its new AI features are only going to be available on newer devices, which should drive some degree of an upgrade cycle. Additionally, while these features will be free when they debut, one could imagine a scenario where some aspects of its AI offering become part of a subscription service. This would give a boost to Apple's fast-growing services segment, which is currently its second-largest revenue source after iPhone sales. Apple is already one of the largest companies in the world and boasts one of the most recognizable brands. If its efforts in AI can continue to drive consumers to buy more of its devices and subscribe to more of its services, the stock could continue to reward shareholders. With so much attention being focused on the few companies making the types of cutting-edge semiconductor chips that can power AI, it's easy to overlook a company like Texas Instruments (TXN 0.94%), which manufactures a wide range of less powerful chips that are needed for everyday uses and products. From your microwave oven to the entertainment center in your car, chips are nearly everywhere, and Texas Instruments makes a lot of them. Year to date, Texas Instruments' stock is up 18%. However, that run has only brought the stock back to its late 2021 level, reflecting the struggles the company has experienced over the past few years. It's important to remember that the semiconductor industry is cyclical, and outside of the high-powered AI chip niche, the industry has been in a cyclical downturn for the past year or so. Texas Instruments' revenue and net income have declined, which is typical during these kinds of downturns. The bottom line is that Texas Instrument plays a vital role in the semiconductor space, and down cycles like the current one are normal. The fact that the stock price is up year to date despite the company's declines on the top and bottom lines demonstrates Wall Street's belief that these market conditions will be a short-term challenge for it. Over the long term, Texas Instruments remains a solid business worth buying now and holding for the future.
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3 Red-Hot Growth Stocks to Buy in 2024 and Beyond
The stock market broadly has had an excellent year so far -- the S&P 500 is up 17%. Naturally, some hot stocks have outpaced that growth, and while it might seem counter-intuitive, some of the stocks with big gains already behind them could still be among the best places for investors to deploy their investing dollars now. Here are three growth stocks that have outpaced the market year to date, but that also have strong competitive positions that make them worth buying today and holding well into the future. Microsoft Since artificial intelligence (AI) has become the hottest topic on Wall Street, much of the attention has been on high-end semiconductor companies like Nvidia, which have been putting up eye-popping results quarter after quarter. However, investors shouldn't forget that Microsoft (NASDAQ: MSFT) is at the forefront of the AI boom due in large part to its investment in OpenAI, the company behind ChatGPT. Microsoft has already added AI features to several of its products, and because of the reach of its product suite, many consumers have already started to see them in action. For example, the Copilot tool that it has added to productivity applications such as Word, Excel, and PowerPoint can help users draft documents and analyze data more easily. AI is impacting Microsoft's business in other ways as well. In its most recently reported fiscal quarter, revenue from its Azure cloud unit increased by 31% year over year, with 7 percentage points of growth coming from AI alone. Overall revenue grew by 17% to $62 billion, while earnings per share increased by 20%. Microsoft is a leader in the software and cloud infrastructure space, and its AI investments are likely to strengthen its position for years to come. Apple At first, it seemed like Apple (NASDAQ: AAPL) was behind when it came to AI. While other tech companies were garnering headlines for their AI-related activities, there wasn't much news coming from the iPhone maker. That all changed last month when it held its annual developer conference, where it unveiled Apple Intelligence, which will roll out later this year. What's most important about Apple's foray into AI is how it will reinforce its ecosystem. Its new AI features are only going to be available on newer devices, which should drive some degree of an upgrade cycle. Additionally, while these features will be free when they debut, one could imagine a scenario where some aspects of its AI offering become part of a subscription service. This would give a boost to Apple's fast-growing services segment, which is currently its second-largest revenue source after iPhone sales. Apple is already one of the largest companies in the world and boasts one of the most recognizable brands. If its efforts in AI can continue to drive consumers to buy more of its devices and subscribe to more of its services, the stock could continue to reward shareholders. Texas Instruments With so much attention being focused on the few companies making the types of cutting-edge semiconductor chips that can power AI, it's easy to overlook a company like Texas Instruments (NASDAQ: TXN), which manufactures a wide range of less powerful chips that are needed for everyday uses and products. From your microwave oven to the entertainment center in your car, chips are nearly everywhere, and Texas Instruments makes a lot of them. Year to date, Texas Instruments' stock is up 18%. However, that run has only brought the stock back to its late 2021 level, reflecting the struggles the company has experienced over the past few years. It's important to remember that the semiconductor industry is cyclical, and outside of the high-powered AI chip niche, the industry has been in a cyclical downturn for the past year or so. Texas Instruments' revenue and net income have declined, which is typical during these kinds of downturns. The bottom line is that Texas Instrument plays a vital role in the semiconductor space, and down cycles like the current one are normal. The fact that the stock price is up year to date despite the company's declines on the top and bottom lines demonstrates Wall Street's belief that these market conditions will be a short-term challenge for it. Over the long term, Texas Instruments remains a solid business worth buying now and holding for the future. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Microsoft wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $791,929!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Jeff Santoro has positions in Apple, Microsoft, Nvidia, and Texas Instruments. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Texas Instruments. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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An analysis of three promising growth stocks for investors to consider in 2024 and the coming years, based on their market performance and future potential.
As we enter 2024, the stock market continues to present exciting opportunities for investors seeking high-growth potential. Three companies have emerged as particularly promising candidates for those looking to capitalize on market trends and technological advancements 1.
Nvidia, a leader in graphics processing units (GPUs), has positioned itself at the forefront of the artificial intelligence boom. The company's chips are essential for training and running AI models, making it a key player in this rapidly expanding field. With a market capitalization exceeding $1 trillion, Nvidia has seen its stock price soar, reflecting investor confidence in its long-term prospects 2.
Amazon, long known for its dominance in e-commerce, continues to diversify its business model. The company's cloud computing arm, Amazon Web Services (AWS), has become a major revenue driver. Additionally, Amazon's foray into artificial intelligence and its growing advertising business present new avenues for growth. Despite facing increased competition, Amazon's innovative approach and strong market position make it an attractive option for growth-oriented investors 1.
Tesla, under the leadership of Elon Musk, remains a polarizing but potentially lucrative investment. The electric vehicle manufacturer has expanded its product line and continues to push the boundaries of autonomous driving technology. Tesla's energy business, including solar panels and energy storage solutions, offers additional growth potential. While the company faces increasing competition in the EV market, its brand strength and technological edge continue to attract investor interest 2.
All three companies have demonstrated strong market performance, with their stock prices showing significant growth over the past year. Analysts remain optimistic about their future prospects, citing factors such as technological innovation, market leadership, and expansion into new business areas 1.
While these stocks offer exciting growth potential, investors should be aware of the risks associated with high-growth companies. Factors such as market volatility, regulatory changes, and increased competition could impact their performance. As always, it's advisable to conduct thorough research and consider one's individual financial goals and risk tolerance before making investment decisions 2.
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An analysis of leading technology stocks that investors should consider for long-term growth potential in 2024 and beyond. The article highlights three prominent companies in the tech sector.
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Analysts recommend several tech stocks for investors looking to capitalize on long-term growth opportunities in the technology sector. These companies show strong potential in areas such as artificial intelligence, cloud computing, and digital advertising.
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As artificial intelligence continues to dominate tech discussions, investors are keenly eyeing AI stocks. This article explores the top AI companies, investment strategies, and potential market leaders in the rapidly evolving AI landscape.
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As the artificial intelligence sector continues to grow, investors are focusing on key AI stocks with significant potential. This article explores top AI companies that analysts believe could yield substantial returns in the coming years.
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As artificial intelligence continues to dominate tech discussions, Wall Street analysts are highlighting several AI stocks with significant upside potential. This article examines the top AI stock picks and the factors driving their growth projections.
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