Are you wondering how fast you can turn a $1,000 investment into a million? Three years? Five years? The Rule of 72 tells us that at a 20% CAGR (which is already outstanding), it would take almost 39 years. The real question is, which stocks do you need to get there? If we consider how the market has moved, it’s clear that high-potential tech stocks offer some of the fastest growth due to the nature of most businesses.
So, today, we will look at the tech stocks that have the potential to help turn $1,000 into $1M. To get my list, I used the criteria below:
- Buy a rating from analysts,
- Positive YTD price percent change,
- Positive growth in earnings and revenue in the last annual report.
I then sorted my list based on the highest to lowest YTD performance. This ensures that I capitalize on the leaders with the qualities to sustain them in the long run.
And so, here are my results.
Super Micro Computer (SMCI)
Being at the forefront of the AI revolution raises investor expectations. We have a Super Micro Computer (NASDAQ:SMCI). The company’s enterprise-level application-optimized servers and long-standing partnership with Nvidia as a provider of AI servers have significantly fueled its recent growth and investor hopes.
The company has significantly benefitted from the current boom with the continued development and adoption of AI, IoT, and cloud computing. Super Micro recently announced that it would be adding three new facilities in Silicon Valley to support this growth further.
Super Micro’s Q3’24 financials reported strong numbers. Net sales significantly increased to $3.85 billion from $1.28 billion YOY, and EPS hit $7.13 from a mere $1.61. If things continue to go as most investors expect, we could see a follow-through from its FY’23 record revenue growth of 37% and 127% in EPS YOY.
So, it’s no surprise that SMCI stock is up 187.04% YTD and has a consensus strong buy rating.
If you want to jump onto the AI boom with high-potential tech stocks, then SMCI is for you.
Applied Materials (AMAT)
A leader in nanomanufacturing solutions, Applied Materials (NASDAQ:AMAT) is a tech company that specializes in three main segments:
- Applied Global Services: provides optimization and performance solutions via upgrades, automation software and other products.
- Semiconductor Systems: offers equipment used for integrated circuits and semiconductor chip making.
- Display and Adjacent Markets: LCD, OLED and display manufacturing technologies.
The company is currently expanding its portfolio of patterning solutions to address the requirements of the “Angstrom era” chips.
Applied Materials also reported decent numbers on its Q2’24 financials. Its revenue remained stable at around $6.65 billion YOY, while its quarterly EPS increased 11% to $2.06.
The company remains optimistic about Q3FY’24, projecting revenue of approximately $6.65 billion and EPS from $1.83 to $2.19. This forecast aligns with the company’s consistent growth trajectory, shown by its 3% YOY revenue increase and 9% earnings growth in FFY23
Altogether, AMAT stock is up 52.87% YTD, and analysts continue to rate it as a strong buy thanks to the demand for AI, IoT, and electric vehicle demand. Applied Materials presents an opportunity worth exploring for investors seeking high-potential tech stocks to turn $1,000 into $1,000,000.
Broadcom (AVGO)
One of the top tech firms in infrastructure software and semiconductor solutions, Broadcom (NASDAQ:AVGO) offers its enterprise clients various cyber security, distributed software, and product licenses. Its acquisition of the software company VMWare has increased its footprint even further as an enterprise software provider.
The company is seeing positive momentum in gaining more partners through its Broadcom Advantage Partner Program for VMware Cloud Service Providers.
Broadcom’s Q2’24 financials rewarded its investors with another impressive quarter. Revenue was 43% higher YOY, driven by strong AI demand and VMware adoption. The company also reported a net income of $2.1 billion, with an adjusted EBITDA of $7.4 billion.
This strong performance has compelled the company to raise this year’s expected revenue to $51 billion. At the same time, adjusted EBITDA is projected at 61% of revenue.
Given Broadcom’s outstanding outlook and performance, it is no surprise that Wall Street analysts consistently rate the company as a strong buy. Such remarkable performance rightfully commands the attention of investors alike. AVGO stock is up 47.92% YTD, making it one of the best high-potential tech stocks today.
On the date of publication, Rick Orford did not have (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.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.