Technological breakthroughs were a key theme for the stock market in 2023. From the vigor of AI to the rapid pulses of 5G, augmented reality (AR) and the expansive domain of the Internet of Things (IoT), our world is evolving at a breakneck pace. Consequently, tech stocks to buy now grace every discerning investor’s portfolio. As we tread through October, the sizzling resurgence of AI-driven tech stocks to buy at the beginning of the year has slowed down. Hence, with recent market jitters, one must tread wisely. With that said, here’s a curated list of seven transformative tech stocks to consider.
Tech Stocks to Buy: Nvidia (NVDA)
Striding in the tech domain with aplomb, Nvidia (NASDAQ:NVDA) has unequivocally cemented its prowess in the graphics processing unit (GPU) market. Despite prevailing headwinds in the semiconductor arena, this tech titan has remarkably clocked record-breaking earnings this year, propelled by robust sales trajectories in server GPUs and AI chips. Consequently, these feats continue to redefine its stature, making it a top pick among tech stocks even amidst market troughs.
Transitioning into the vibrant universe of AI and machine learning, Nvidia’s innovative offerings are becoming indispensable. The recent unveiling of its next-gen AI super chip, the GH200, marks a major stride in the world of generative AI. Consequently, this not only amplifies its capacity to produce content and craft code but also underscores its relentless commitment to perpetually enhancing its tech portfolio. Despite rising over 220% year-to-date, NVDA stock is on track to achieve higher highs.
Navigating through the complexities of potential recessions, Mastercard (NYSE:MA) has a promising trajectory, fortified by its robust and consistent financial performances. Consumer spending, even amidst the economic troubles, stands its ground, especially with cross-border travel catapulting beyond 150% of 2019’s levels in the second quarter. Also, the financial giant’s alliances with a myriad of banks and millions of its cards in circulation solidify its long-term position in the fintech sphere.
Furthermore, Mastercard has been venturing into other digital domains, such as Blockchain, with initiatives like its Multi-Token Network and Web3 through its Mastercard Artist Accelerator. The goal is for non-fungible tokens to evolve from vanity tokens to functional assets while fostering emerging artists in the process. Hence, the company has harmoniously blended its financial services with modern blockchain technology, crafting a melody where tradition and innovation merge seamlessly.
Meta Platforms (META)
Meta Platforms (NASDAQ:META), despite an unsettling mid-year stock price hovering around $300, its strategic prowess in AR/VR and adventurous foray into AI points to robust gains ahead. Moreover, the unveiling of its powerful large-language model in Llama and its sequel, Llama 2, gently nudges into OpenAI’s ChatGPT territory. Furthermore, the shimmers of the newly-revealed Quest 3 VR headset and collaboration with Ray-Ban smart glasses at the Connect 2023 event add another layer to its promising growth story.
Furthermore, its financials remain impeccable, with ad revenues rising by 11% year-over-year to a hearty $31.5 billion during the second quarter and a strategically diversified revenue stream sprouting from various platforms like Facebook, Instagram and WhatsApp. Meanwhile, analysts are peering into the future, expecting an encouraging ad spend trajectory. Morgan Stanley (NYSE:MS), in particular, prescribes an Overweight rating with a bright-eyed $375 price target, sketching a scenario where Meta thrives amidst regulatory and market fluctuations.
Embarking on a journey that transcends its e-commerce dominion, Amazon (NASDAQ:AMZN) carves out a futuristic path, integrating AI and diverse revenue streams and painting a picture of unwavering economic strength. Beyond the digital shelves, Amazon’s cash cow has undoubtedly been its cloud computing arm in Amazon Web Services (AWS), contributing an eye-catching 70% to Amazon’s total operating profits while reporting a peak sale of $22.1 billion.
Simultaneously, Amazon’s strategic partnership with AI safety and research business in Anthropic points to a robust $4 billion investment, propelling its AI-centric vision onto a global stage and solidifying its cloud portfolio. This partnership is likely to craft an Alexa-integrated ChatGPT rival, interweaving voice technology, and AI, underlined by an alluring revenue forecast of $138 billion to $143 billion for the upcoming quarter. Moreover, the decision to onboard 250,000 workers for the holiday wave mirrors a bullish optimism. The preceding Prime Day, having netted more than $12 billion, points to a substantial windfall in revenues and profits.
Salesforce (NYSE:CRM) has established its position as a juggernaut in the cloud computing realm, having grown rapidly over the past several years. It delivered another solid second-quarter performance, boasting an 11% year-over-year revenue spike to $8.60 billion and the subsequent elevation of its fiscal year 2024 revenue guidance to a solid $34.7 billion. This cloud maestro, with a services suite ranging from customer management to sales process automation, has seen its stock price value rise by a healthy 53% year-to-date.
The pulsating global demand, driven by burgeoning sectors such as AI and machine learning, echoes the indispensability of cloud computing. Additionally, the company projects an attractive third-quarter outlook, with an anticipated EPS ranging between $2.05 and $2.06 and revenue touching the horizon between $8.7 billion and $8.72 billion, surpassing analysts’ projections. With the cloud computing market expected to soar 16.4% to $1.24 trillion from 2023 to 2028, CRM stock is poised for massive long-term gains.
CrowdStrike Holdings (CRWD)
CrowdStrike Holdings (NASDAQ:CRWD) has established itself as a cybersecurity sentinel, especially considering its promising financial and technological blueprint. The last decade saw CrowdStrike’s revenues soaring, primarily due to its flagship Falcon cloud security platform, which significantly expanded its financial horizons, exemplifying a 48% year-over-year growth to $2.56 billion in fiscal year 2023. Notably, the same fiscal period observed its free cash flow spiraling up by 65% to a hefty $209.5 million, highlighting its fiscal prowess.
Furthermore, a fiscal peek into its second quarter reveals a net income of $8.5 million, a contrast to the net loss of $49.3 million it generated in the prior year, supported by a record FCF of $189 million. Couple that with a triumphant second quarter EPS of 74 cents outpacing consensus forecasts by 18 cents, and a 37% year-over-year revenue hike to $731.6 million,
In the labyrinth of cyber threats, the firm’s sharpened focus on its Falcon platform, now emboldened with its AI-powered Falcon XDR module, is poised to elevate threat detection and hasten response times. Hence, with its forward-thinking strategies in place, uplifted forward guidance and analyst-acclaim, CrowdStrike remains an excellent play in its niche.
Palantir Technologies (PLTR)
Navigating through the intricate web of AI and data analytics, Palantir Technologies (NYSE:PLTR) illuminates a path towards financial and strategic triumphs, boasting a stellar 180% year-to-date return. A 13% second-quarter revenue surge reaching $533.3 million, coupled with a net income blossoming by 116% to $28.1 million, narrates a tale of fiscal vibrancy. Yet, Palantir’s journey meanders beyond simply financials into a realm of transformative collaborations, including a looming contract with the U.K.’s NHS and a $250 million U.S. Defense Department deal, revealing. Additionally, a potential $579 million contract to overhaul the U.K.’s digital healthcare infrastructures further emphasizes its prowess in deploying machine learning for system enhancements. Amidst a technological epoch, Palantir emerges as a definitive game-changer, intertwining innovative brilliance with strategic insight. PLTR stock’s impressive return year-to-date positions the company as one of the top wealth-amplifying AI stocks.
On the date of publication, Muslim Farooque 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 writer, subject to the InvestorPlace.com Publishing Guidelines.