The technology sector is known for its rapid growth and disruptive innovation. This can create opportunities for investors to capitalize on 5X potential tech stocks.
If you’re searching for tech stocks with the potential to multiply your investments, you’ve come to the right place. These companies are often in emerging sectors like 5G, artificial intelligence, renewable energy, cybersecurity and infrastructure. While there are no guarantees in the stock market, these unique tech companies possess all the necessary ingredients for explosive growth through 2030.
Let’s unpack the top 5X potential tech stocks investors should snap up in 2024.
Spotify (SPOT)
Spotify (NYSE:SPOT) is undoubtedly in the discussion for the top 5X potential tech stocks to buy. The company has changed the game for music streaming, holding a â…“ of the music streaming market share.
Spotify presents a compelling investment opportunity as its service reaches critical mass and profitability continues to drive growth. As the world’s largest music streaming platform, Spotify boasts over 600 million MAUs. Their user base is growing exponentially and will reach over 1 billion in the coming years. But investors are excited about the company’s shift into the podcasting arena. They have invested heavily in acquiring exclusive rights to popular podcasts, positioning themselves to dominate the market.
In their latest quarterly results, Spotify’s revenue increased 20% YOY to $3.6 billion. Operating margin expansion continued in the quarter, with operating income hitting a record $168 million. Moreover, MAUs and premium subscribers saw YOY growth in the mid to high teens. The future remains bright, and their long-term growth prospects make it a compelling investment for 2024.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) is a leading player in the server and storage hardware markets. The company is well-positioned for continued growth with the increasing demand for cloud computing, data centers, and AI.
The company is strategically focused on designing and manufacturing high-performance, customizable server solutions that give it an edge over its competitors. Their next-generation liquid cooling components are essential for deployment and rapid acceleration of AI workloads. It is coupled with unparalleled performance, which is evident by the rapid demand for their products from hyperscalers.
Super Micro may surprisingly have a multi-decade tailwind for growth, and their recent S&P 500 inclusion is just the beginning. In Q3 FY24, revenue skyrocketed 200% YOY to $3.85 billion. EPS more than tripled to $6.56 per share, driven by strong demand for AI rack scale PnP solutions. With demand for AI solutions accelerating rapidly, SMCI stock remains at the forefront of the technological renaissance. This makes Super Micro one of the best 5X potential tech stocks to buy now.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) is a semiconductor giant quietly leading the AI revolution. The stock has flown under the radar in the past year, but Wall Street is beginning to take notice of the potential of their Snapdragon platform.
Qualcomm, a leader in 5G and IoT technology, will be a major player in AI when it’s all said and done. Their Snapdragon X platforms are crucial to modern mobile connectivity, providing customized chips for smartphones, tablets and PCs. The company’s reveal of the Snapdragon X Elite CPU has garnered a lot of attention due to its ability to run AI models 2X faster than its competitors.
However, it is not just about their prospects in the PC market but their full-stack AI solutions for the smartphone, automotive, IoT, and cloud markets. They remained well positioned to capitalize on the growth of AI and how it converges with multiple areas of their business. Qualcomm’s recent Q2 FY24 results signal diversified growth across all business segments, and the ongoing recovery in the handset segment is a positive sign for the future.
On the date of publication, Terel Miles 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.
