The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.
© 2024 TheOutpost.AI All rights reserved
Curated by THEOUTPOST
On July 18, 2024
2 Sources
[1]
3 Leading Tech Stocks to Buy in 2024 and Beyond
Tech stocks led the market in the first half of 2024, and there is no reason they can't continue leading the market into the future. Artificial intelligence (AI) appears to be a game changer that should help power the sector higher in the years to come. Let's look at three tech stocks to buy this year and beyond. 1. Nvidia No company has benefited more from the increased interest in AI than Nvidia (NASDAQ: NVDA), whose graphic processing units (GPUs) are being used to harness the power of AI in the data center. The company has created a stranglehold on the GPU market through its Compute Unified Device Architecture (CUDA) software platform that long ago became the industry standard for programming GPUs before AI became the next big thing. With developers trained on its software platform, it has become difficult for other chipmakers to make a dent in Nvidia's dominance, and there does not appear to be anything on the horizon to challenge its market-leading position. At the same time, the company sped up its innovation cycle to further widen its lead, looking to push out new GPU architecture platforms almost every year. The company's growth has been nothing short of spectacular, with its first-quarter revenue soaring 262% year over year to $26 billion. While that level of growth is unsustainable, demand for many of its chips outstrips supply, and customers are still in the early days of building out their AI infrastructures. This should continue to lead to strong growth in the years to come. At the same time, given its growth, the stock is reasonably priced at a forward price-to-earnings (P/E) ratio of under 47 times. While Nvidia has been at the forefront of AI on the chip side, Microsoft (NASDAQ: MSFT) has been the AI leader on the cloud computing and software side. Through its partnership with and investment in OpenAI, Microsoft has incorporated AI throughout its various offerings. Its Azure cloud-computing business has been the biggest beneficiary of AI thus far, as shown by the segment's revenue jumping 31% year over year last quarter. This is a pay-as-you-go business where customers pay only for the resources they use, and that usage has been soaring as clients use the Azure platform to build their own AI solutions. The company has seen deals getting bigger, with Azure deals worth more than $10 million last quarter doubling and $100 million-plus deals up 80%. Meanwhile, Microsoft's introduction of AI assistant Copilots is helping power other parts of its business as well. Its GitHub Copilot, which can make suggestions to help complete coding, helped power a 45% increase in revenue for its developer platform GitHub segment. The company is also using AI in its Microsoft 365 and LinkedIn offerings, which helped drive 14% and 29% year-over-year revenue growth, respectively, in each segment last quarter. Trading at a forward P/E of under 34 times, the stock's valuation is consistent with where it has traded over the past five years. Given the growth potential from AI in front of it, this is a solid stock to buy at current levels. While Nvidia and Microsoft have been early AI leaders, DocuSign (NASDAQ: DOCU) has the potential to be a later AI beneficiary. The company known for its e-signature solution has witnessed its growth slow as it saw a lot of pull forward in demand due to the COVID-19 pandemic and then saw one of its biggest end markets, residential real estate, come under pressure. However, this company has a cash-rich balance sheet and generates a lot of free cash flow. At the same time, with its new Intelligent Agreement Management (IAM) solution, it is looking to combine its e-signature and contract lifecycle management (CLM) products to become a platform company. It will also begin incorporating AI technology into its new IAM platform, which it obtained from its recent acquisition of AI-powered agreement-management software company Lexion. The company has already introduced a number of new features to be included in IAM, such as Maestro, which can create agreements without coding, and Navigator, which can store and analyze a customer's agreement databases. DOCU PE Ratio (Forward) data by YCharts. PE = price to earnings. EV = enterprise value. Trading at a forward P/E ratio under 18 and an enterprise value-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) multiple of under 12, the stock is attractively valued, given its leading position in the e-signature market and potential growth drivers with its new IAM solution. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia 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 $774,281!* 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*. Geoffrey Seiler has positions in Docusign. The Motley Fool recommends Docusign, Microsoft, and Nvidia. 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.
[2]
3 Leading Tech Stocks to Buy in 2024 and Beyond | The Motley Fool
Artificial intelligence is set to power each of these stocks moving forward. Tech stocks led the market in the first half of 2024, and there is no reason they can't continue leading the market into the future. Artificial intelligence (AI) appears to be a game changer that should help power the sector higher in the years to come. Let's look at three tech stocks to buy this year and beyond. No company has benefited more from the increased interest in AI than Nvidia (NVDA -6.62%), whose graphic processing units (GPUs) are being used to harness the power of AI in the data center. The company has created a stranglehold on the GPU market through its Compute Unified Device Architecture (CUDA) software platform that long ago became the industry standard for programming GPUs before AI became the next big thing. With developers trained on its software platform, it has become difficult for other chipmakers to make a dent in Nvidia's dominance, and there does not appear to be anything on the horizon to challenge its market-leading position. At the same time, the company sped up its innovation cycle to further widen its lead, looking to push out new GPU architecture platforms almost every year. The company's growth has been nothing short of spectacular, with its first-quarter revenue soaring 262% year over year to $26 billion. While that level of growth is unsustainable, demand for many of its chips outstrips supply, and customers are still in the early days of building out their AI infrastructures. This should continue to lead to strong growth in the years to come. At the same time, given its growth, the stock is reasonably priced at a forward price-to-earnings (P/E) ratio of under 47 times. While Nvidia has been at the forefront of AI on the chip side, Microsoft (MSFT -1.33%) has been the AI leader on the cloud computing and software side. Through its partnership with and investment in OpenAI, Microsoft has incorporated AI throughout its various offerings. Its Azure cloud-computing business has been the biggest beneficiary of AI thus far, as shown by the segment's revenue jumping 31% year over year last quarter. This is a pay-as-you-go business where customers pay only for the resources they use, and that usage has been soaring as clients use the Azure platform to build their own AI solutions. The company has seen deals getting bigger, with Azure deals worth more than $10 million last quarter doubling and $100 million-plus deals up 80%. Meanwhile, Microsoft's introduction of AI assistant Copilots is helping power other parts of its business as well. Its GitHub Copilot, which can make suggestions to help complete coding, helped power a 45% increase in revenue for its developer platform GitHub segment. The company is also using AI in its Microsoft 365 and LinkedIn offerings, which helped drive 14% and 29% year-over-year revenue growth, respectively, in each segment last quarter. Trading at a forward P/E of under 34 times, the stock's valuation is consistent with where it has traded over the past five years. Given the growth potential from AI in front of it, this is a solid stock to buy at current levels. While Nvidia and Microsoft have been early AI leaders, DocuSign (DOCU -1.26%) has the potential to be a later AI beneficiary. The company known for its e-signature solution has witnessed its growth slow as it saw a lot of pull forward in demand due to the COVID-19 pandemic and then saw one of its biggest end markets, residential real estate, come under pressure. However, this company has a cash-rich balance sheet and generates a lot of free cash flow. At the same time, with its new Intelligent Agreement Management (IAM) solution, it is looking to combine its e-signature and contract lifecycle management (CLM) products to become a platform company. It will also begin incorporating AI technology into its new IAM platform, which it obtained from its recent acquisition of AI-powered agreement-management software company Lexion. The company has already introduced a number of new features to be included in IAM, such as Maestro, which can create agreements without coding, and Navigator, which can store and analyze a customer's agreement databases. Trading at a forward P/E ratio under 18 and an enterprise value-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) multiple of under 12, the stock is attractively valued, given its leading position in the e-signature market and potential growth drivers with its new IAM solution.
Share
Share
Copy Link
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.
As we look towards 2024 and beyond, the technology sector continues to offer compelling investment opportunities. Despite market fluctuations, certain tech giants stand out for their innovation, market dominance, and potential for long-term growth. This article examines three leading tech stocks that investors should consider adding to their portfolios.
Microsoft (NASDAQ: MSFT) has solidified its position as a leader in the cloud computing space with its Azure platform. The company's strategic focus on artificial intelligence (AI) integration across its product lineup has further strengthened its market position 1. Microsoft's diverse revenue streams, including its Office suite and gaming division, provide stability and growth potential.
Amazon (NASDAQ: AMZN) continues to dominate the e-commerce landscape while also being a major player in cloud services through Amazon Web Services (AWS). The company's relentless focus on customer satisfaction and operational efficiency has driven its success 2. Amazon's expansion into new markets and its growing advertising business present additional avenues for revenue growth.
Alphabet (NASDAQ: GOOGL), Google's parent company, remains at the forefront of search technology and digital advertising. The company's investments in AI and machine learning have enhanced its core products and opened up new opportunities in cloud computing and autonomous vehicles 1. Alphabet's diverse portfolio of innovative projects positions it well for future growth.
These tech leaders share several key attributes that make them attractive investment options:
While these stocks offer promising prospects, investors should be aware of potential risks:
As we approach 2024, Microsoft, Amazon, and Alphabet stand out as tech stocks with strong potential for continued growth. Their dominant market positions, innovative capabilities, and financial strength make them attractive options for investors looking to capitalize on the ongoing digital transformation across industries 2. However, as with any investment, thorough research and consideration of individual financial goals and risk tolerance are essential before making investment decisions.
Reference
[1]
[2]
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.
2 Sources
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.
4 Sources
Recent market fluctuations have sparked discussions about AI stocks. Despite concerns of a bubble, experts see potential in key players like Nvidia, Microsoft, and Apple. This article explores investment opportunities in the AI sector.
6 Sources
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.
4 Sources
Artificial Intelligence (AI) is revolutionizing industries, and investors are keen on identifying the best AI stocks for long-term investment. This article explores top AI companies that are poised for significant growth in the coming years.
2 Sources