3 Tech Stock Innovators to Own Before They Take Off

Stocks to buy

Choosing the right tech stocks to purchase may make a big difference in your portfolio’s performance and guarantee strong returns. Three firms stand out in this hunt for profitable ventures. These tech sector titans are more than just regular tech players; they represent the pinnacle of what makes tech equities worthwhile investments.

Investing in tech firms may unlock significant growth potential, ground-breaking innovations, and growing market shares since technology drives innovation across many industries. These businesses are redefining the semiconductor industry with their cutting-edge CPUs and GPUs. Their cutting-edge semiconductor equipment is creating waves. In the same vein, cloud computing and e-commerce are being transformed.

These companies are added to our tech stocks to buy list because of their cutting-edge goods, impressive financial results, and room for expansion within their respective industries. People looking to get a taste of the IT sector frequently look at these firms because of their propensity to take advantage of new trends, provide value to clients, and increase returns over the long run.

Advanced Micro Devices (AMD)

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The semiconductor giant Advanced Micro Devices (NASDAQ:AMD) leads in high-performance graphics and computer products. Its products power various devices, including game consoles and data center servers. Revenue from the Data Center category increased significantly, rising by 80% YOY to reach $2.3 billion.

Additionally, the main drivers of this expansion were the robust ramp of AMD Instinct MI300X GPU shipments and a double-digit percentage rise in server CPU sales. In a traditionally weak Q1, AMD increased its revenue share from server CPUs, particularly in business adoption and expanding cloud installations.

Further, the sales of Ryzen 8000 Series CPUs were the main driver of the 85% YOY rise in revenue for the client sector, which reached $1.4 billion. The most recent generation of Ryzen CPUs was in high demand for both desktop and mobile applications. Adopting AI PCs and business renewal cycles may propel the PC industry back to yearly growth in 2024. This outlook offers substantial growth prospects.

To conclude, AMD is one of the top tech stocks to buy for growth potential in the semiconductor market. This is because of its strategic focus on tech advancement and industry-leading technologies like the EPYC CPUs and Radeon GPUs.

ACM Research (ACMR)

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To seize the booming demands of the semiconductor industry, ACM Research (NASDAQ:ACMR) focuses on developing and producing semiconductor equipment. Its offerings include sophisticated packaging solutions, wafer-cleaning equipment, and more. In Q1 2024, ACM Research showed strong revenue growth, with a 105% YOY rise to $152.2 million. Revenue from many product categories reflects a diverse portfolio. Noteworthy contributions are made by advanced packaging, electrochemical plating, furnaces, and single-wafer cleaning.

Moreover, the first quarter of 2024 had a gross margin of 52.5%, beyond the predicted range of 40% to 45%, despite a little decline from the prior year, suggesting effective pricing and cost-control techniques. According to ACM Research, gross margins should stay at the top of the goal range, demonstrating consistency and assurance in sustaining profitability. Operating margin for ACM Research increased significantly, from 14.7% during the same time last year to 26.2% in Q1 2024. Hence, this significant improvement denotes improved cost control and operational efficiency.

In summary, strong gross and operating margins, a varied product mix, and steady revenue growth make ACM Research one of the top tech stocks to buy in the semiconductor equipment market.

GigaCloud (GCT)

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GigaCloud (NASDAQ:GCT) is a leading cloud computing and e-commerce company that provides online marketplace platforms, cloud computing services, and associated technological solutions. The company’s top-line nearly doubled to $251.1 million in Q1 2024, against $127.8 million in Q1 2023. GigaCloud’s solid top-line growth indicates a high service demand, reflecting its fundamental ability to gain market share.

Additionally, from $29.6 million in Q1 2023 to $66.5 million in Q1 2024, the gross profit climbed dramatically by 124.7% YOY. This enhancement demonstrates GigaCloud’s sharp capacity to control expenses, boost productivity, and preserve high profit margins. On a trailing 12-month basis, the gross merchandise value (GMV) of the GigaCloud Marketplace boosted by 64% YOY in Q1. This suggests that the company’s clientele and service demand are expanding. Hence, the sharp increase in GMV reflects the high activity and volume of transactions in the marketplace. 

Overall, GigaCloud has the potential to be a top tech stock to buy, especially in the cloud computing and e-commerce industries.

As of this writing, Yiannis Zourmpanos held long positions in AMD and ACMR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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