Recent blowout earnings from Nvidia (NASDAQ:NVDA) have amplified excitement in the tech trade. Investors are piling into tech stocks, in hopes of capturing growth and riding long-term momentum. Artificial intelligence and stocks of microchip and semiconductor companies, such as Nvidia, are proving to be especially hot right now.
Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) recently forecast 10% annual revenue growth for the worldwide microchip and semiconductor industry this year. TSMC, as the company is known, is the largest chip foundry in the world, making about 70% of the world’s chips and semiconductors. Clearly, chips are a good sector to be invested in.
But beyond Nvidia and semiconductors, there is a whole world of tech stocks out there that investors can put capital to work in. Here are tech up-and-comers: three under-the-radar stocks with 10X potential.
Carvana (CVNA)
Online used car retailer Carvana (NYSE:CVNA) had a difficult time during the 2022 bear market. Concerns that the company was taking on too much debt and the impact of high interest rates on car sales and loans sent CVNA stock plunging 98% peak to trough. Carvana stock fell from $360 to less than $5. The selloff was brutal.
However, the company has managed to come storming back over the past year and continues to rally.
In the last 12 months, CVNA stock has risen nearly 700% and is again trading above $100 per share. So far in 2024, Carvana stock has more than doubled, having gained 123%. The company has been helped by a resilient economy and car market that has stabilized.
It has also gotten a lift from cost reductions and efficiency gains, which have resulted in record quarterly financial results. Carvana stock recently rallied 30% after the company issued its first-quarter print. More gains can be expected.
Amphenol Corp. (APH)
For another way to play the microchip and semiconductor boom, consider Amphenol Corp. (NYSE:APH). The company produces the parts and equipment that the chip and semiconductor industry relies on. This includes electronic and fiber optic connectors, as well as coaxial cables.
While it doesn’t get nearly as much attention as the other companies helping to drive the AI revolution, Amphenol has been a going concern since 1932.
The company began life as a maker of tube sockets and other parts found in radios. Today, Amphenol is enabling the rise of microchips and semiconductors that have been called the “oil of the 21st century.” APH stock has been on an upswing, rising about 40% this year and increasing about 77% in the last 12 months and gaining 213% in the past five years. The company also just announced a two-for-one stock split.
Amphenol stock is currently trading at an all-time high. But that shouldn’t deter investors as demand for its products is only growing.
Micron Technology (MU)
Also benefitting from the AI revolution is Micron Technology (NASDAQ:MU), the maker of memory and storage for computers that specializes in USB flash drives. MU stock caught fire after the company’s most recent earnings print beat Wall Street forecasts and included upbeat forward guidance. Year-to-date, Micron Technology stock is up 57% and one of the best-performing tech stocks of the year.
For Q1 this year, Micron reported EPS of 42 cents. Analysts had been expecting a loss of 25 cents a share. Revenue totaled $5.82 billion versus $5.35 billion expected on Wall Street. Company executives said they are benefitting from the current AI boom, with demand for its memory and computer data storage products soaring. Micron provides memory and storage for new AI systems around the world and its business is booming.
With its share price up 13% in the last month alone, MU stock looks to have plenty of momentum, which should continue for the foreseeable future.
On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.