7 Tech Stocks That Could Be Millionaire-Makers: May Edition

Stocks to buy

If you’re wondering which tech stocks to buy this month, look no further. Technology stocks continue to offer investors big growth opportunities. While the market rally is broadening out, tech stocks are still leading with outsized gains. And it is not just the mega-cap technology companies known as the Magnificent 7 where opportunities are to be found. A range of different technology stocks are providing shareholders with market beating returns.

Catalysts such as artificial intelligence (AI), a rebound in online advertising, the popularity of streaming, demand for microchips and semiconductors, and the resurgence of cryptocurrencies are propelling stocks of technology companies to new heights. While there are other sectors to invest in, none have provided as much consistent growth as tech stocks since we emerged from the 2008-09 financial crisis 15 years ago.

Here are seven tech stocks that could be millionaire-makers: May edition.

Tech Stocks to Buy: Dell Technologies (DELL)

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Shares of Dell Technologies (NYSE:DELL) have doubled in the last six months and continue to run hot. DELL stock recently closed at an all-time high on expectations that the company will see exponential growth from sales of both AI laptop computers and servers. The company run by founder Michael Dell has emerged as a leader in the AI sector. In the last 12 months, the company’s share price has risen 211%.

The most recent boost to Dell stock came after investment bank Morgan Stanley (NYSE:MS) raised its price target on the shares and forecast that the company would get a sizable revenue boost from sales of servers that run AI applications. Morgan Stanley expects about $10 billion of AI server revenue from Dell in the company’s current fiscal year that ends in February 2025.

The bank lifted its price target on DELL stock to $152 a share from $128 previously and named the company a “top pick” in the technology sector.

Reddit (RDDT)

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Shares of social media company Reddit (NYSE:RDDT) have moved higher based on two recent catalysts. Most recently, RDDT stock increased 11% on news that it has struck a partnership with leading AI start-up OpenAI. The OpenAI partnership is expected to attract more users to Reddit’s social media platform with AI-enhancements and increased advertising. OpenAI has committed to becoming an advertising partner of Reddit, which runs online message boards, including the popular WallStreetBets site.

Secondly, Reddit, which held its initial public offering (IPO) at the end of March this year, got a boost after the company issued its first earnings report as a public company. RDDT stock jumped 15% higher after the concern reported a better-than-expected loss per share of $8.19, which was not as bad as a loss of $8.71 that was expected among analysts. Sales in the quarter totaled $243 million, which was much better than consensus forecasts of $212.8 million. Reddit said its sales rose 48% from a year earlier.

RDDT stock is now up 30% since its market debut two months ago.

Tech Stocks to Buy: Alphabet (GOOG, GOOGL)

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The stock of technology giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is also trading at an all-time high, having risen 35% in the last two months. GOOGL stock has caught fire on growing evidence that the company is reasserting its dominance in the field of AI. Alphabet just held its annual I/O developer conference where it unveiled a host of new AI innovations, winning praise from analysts and investors.

Also in recent weeks, Alphabet declared its first ever dividend payment alongside blowout first-quarter earnings. The technology giant will pay a cash dividend of 20 cents per share starting on June 17. The company also announced a new $70 billion stock buyback program. The company had $108 billion of cash at the end of Q1. The dividend and share repurchases were announced alongside Q1 results that crushed forecasts, boosted by a resurgence in online advertising.

GOOGL stock is now up 42% over the past 12 months.

Super Micro Computer (SMCI)

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There’s currently a buy-the-dip opportunity with the stock of Super Micro Computer (NASDAQ:SMCI). The shares have pulled back in recent weeks and are currently trading 25% below their 52-week high. The drawdown comes following explosive growth in SMCI stock. In the last 12 months, the company’s share price has risen 457%. And that’s after the current pullback is factored in. So far in 2024, SMCI stock has more than tripled.

The growth in Super Micro Computer’s stock was big enough to get it added to the benchmark S&P 500 index. The current dip in SMCI stock comes after the company reported year-over-year (YOY) revenue growth of 200% for Q1 of this year. Super Micro Computer also raised its forward guidance. But none of that seemed to be enough to impress investors.

The maker of high-efficiency servers that run AI applications, and Dell competitor, has seen its share price increase more than 4,500% in the last five years.

Tech Stocks to Buy: Coinbase Global (COIN)

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The stock of cryptocurrency exchange Coinbase Global (NASDAQ:COIN) has gained 45% year-to-date as prices for digital assets such as Bitcoin (BTC-USD) and Ethereum (ETH-USD) have come roaring back. COIN stock is now up 274% over the last 12 months, having surged after the company’s Q1 earnings print. Coinbase reported EPS of $4.40, which was 303% higher than the $1.09 expected among analysts.

Revenue in the January through March quarter totaled $1.64 billion versus $1.34 billion that was expected on Wall Street. Coinbase Global, the largest crypto exchange in the U.S., said the results were due to a big rise in crypto trading during Q1 as the price of Bitcoin reached a record high of just under $74,000 in March. Consumer transaction revenue on the exchange during this year’s first quarter was up more than 100% from a year ago.

Spotify Technology (SPOT)

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Shares of Spotify Technology (NYSE:SPOT) have more than doubled over the last 12 months as the audio streaming company controls costs and posts strong financial results. So far in 2024, SPOT stock has gained 62%. The share price really took off after the company announced Q1 earnings that beat expectations across the board despite user growth at the music and podcast streaming platform missing lofty Wall Street forecasts.

Spotify CEO Daniel Ek has called 2024 a “year of monetization.” In recent months, Spotify has raised prices on individual streaming plans in the U.S. for the first time since 2011 and cut 17% of its global workforce, equal to about 1,500 employees. The cost controls and price increases have had a positive impact on Spotify’s financial results. The company now has 615 million monthly active users on its streaming platform, and growing.

Arm Holdings (ARM)

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British chipmaker Arm Holdings (NASDAQ:ARM) has only been publicly traded since last fall, but its stock is benefitting from multiple catalysts. The company recently announced that it plans to launch its first AI-specific microchip in 2025, marking its first foray into the development of AI chips. Arm plans to establish an AI microchip division and will build a prototype chip by early next year.

Production on the new AI chip is expected to begin in fall 2025. Currently, Arm focuses on making chips and semiconductors that are used in smartphones. Secondly, the company has reported a string of strong quarterly prints since going public last September. Arm recently announced fiscal fourth-quarter revenue of $928 million, a 47% increase from a year ago. Arm’s royalty revenues grew 37% YOY to $514 million, a record amount. In terms of profit, Arm earned 36 cents a share, beating forecasts of 31 cents.

ARM stock has increased 90% since its IPO less than a year ago.

On the date of publication, Joel Baglole held a long position in GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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