3 Unstoppable Tech Stocks That Will Take You From Almost Nothing to $500,000 and More

By | March 16, 2024

Finding quality stocks to buy isn’t terribly difficult for most investors. However, finding stocks that can turn virtually nothing into half a million dollars in one lifetime has its challenges.

Potential candidates are likely to be found within the technology sector, as technology is ultimately at the heart of most major socio-cultural developments. But these companies must also be able to adapt products and services that are in constant demand. This criterion narrows the list of possibilities considerably.

With that as background, here’s a look at three tech stocks that — given enough time — have a good chance of turning almost nothing into $500,000, if not more.

1. Nvidia

You probably know it Nvidia (NASDAQ: NVDA) as a maker of computer graphics technology. Its standalone GPUs (graphics processing units) are a favorite among video game enthusiasts, although the company also offers display solutions for PCs without graphics cards.

However, computer screens are no longer the biggest business, not even close. Last year, data center processing solutions accounted for more than three-quarters of the company’s revenue. Generally, these data centers use Nvidia’s hardware in artificial intelligence applications. It turns out that the same computer architecture that powers powerful graphics cards is also perfectly suited to handling the heavy data loads inherent in AI! That’s why Nvidia has been making purpose-built hardware for artificial intelligence for a while now. And that’s why Nvidia is now believed to control the vast majority of the AI ​​hardware market.

Problem? Investors who keep a close eye on Nvidia probably already know that. With a market cap of over $2 trillion, the company is now a regular contender for the honor of being the world’s largest. However, this sheer size also seemingly limits the potential benefit. How big can a company realistically become?

The point is that there is no actual limit to Nvidia’s potential size. These are purely mental constructions. This is especially true in light of the fact that the world has only just begun to adopt AI. A forecast from Precedence Research shows that the global AI market will grow at an average of 19% annually through 2032, while Mordor Intelligence says the AI ​​computing hardware market alone is likely to grow at an annual rate of 26% through 2029. Of course, it bodes well for Nvidia.

2. The Trading Desk

The Trade Bureau (NASDAQ: TTD) is anything but a household name. But chances are that you or someone in your household is regularly affected by the service.

In the simplest terms, The Trade Desk helps companies advertise more effectively, especially when it comes to digital advertising. From ad-supported streaming to billboards and conventional web ads, The Trade Desk is a one-stop shop for getting your message in front of consumers. Just as importantly, the company helps advertisers better target specific audiences and monitor the success of advertising campaigns. It even integrates its platform with other similar ad support and data monitoring services.

It’s not exactly a brand new idea. Companies have been trying to refine their advertising for decades. It didn’t take long for advertisers to do the same, shortly after the Internet itself was identified as a viable advertising medium.

The Trade Desk is demonstrably doing better than most, if not all, of its competitors in this area. Quadrant Knowledge Solutions has identified The Trade Desk as the top advertising technology provider in 2023, putting the company ahead of competitors like Alphabet‘s Google, AmazonAnd Adobe. IT research and advice Gartner also regularly ranks The Trade Desk as a leader within the ad-tech space, once again placing it on par with Adobe, Google, and Amazon.

This powerful platform is the main reason the company’s revenue is expected to increase by almost 23% this year and almost another 20% next year. Earnings are growing even more, from $1.26 per share last year, to an expected $1.47 this year and an expected $1.76 per share next year.

This could seal the deal: The Trade Desk is doing well, but the stock remains well below analyst estimates of its value. Most analysts currently rate shares as a Strong Buy, with the consensus price target of $97.85 more than 20% above the stock’s current price.

3. IonQ

Last but not least, add IonQ (NYSE: IONQ) added to your list of unstoppable tech stocks that can take you from zero to half a million dollars in a relatively modest amount of time.

Most investors have probably heard the term “quantum computers.” But most investors would also be hard-pressed to name a single publicly traded company working on this revolutionary computing technology. IonQ is one of the few. By using ionized ytterbium atoms as the basis for its computing platforms, the company can provide computational solutions that couldn’t even be imagined using more conventional silicon-based hardware. For perspective, quantum computers are on the order of 100 million times faster than the type of computers you use at home or work.

That doesn’t necessarily make them better for all purposes. Quantum computers are not practical for most ordinary applications, such as surfing the Internet or playing a video game. They are only well suited for performing complex calculations, such as those to be performed by AI or drug development platforms. They may also be able to perform tasks such as financial modeling or cybersecurity, which are not necessarily data intensive but are still complex, multi-faceted tasks.

Investors need to understand that these solutions are no longer merely theoretical, or even in beta testing. They are real. IonQ’s quantum computers have now been commercialized. The company posted $22 million in revenue last year and is expected to report $39 million this year on its way to nearly $81 million in revenue by 2025.

The company is not yet profitable, and probably won’t be in the near future. That’s a risk that needs to be taken into account, simply because unprofitable companies often make for volatile, unpredictable stocks.

That doesn’t necessarily mean IonQ stock won’t perform well in the future, especially as more investors start to see the company’s opportunities in quantum computing. Precedence Research suggests that this market will grow by an average of 37% through 2030, while it is expected to be worth $125 billion per year.

Should You Invest $1,000 in Nvidia Now?

Consider the following before buying shares in Nvidia:

The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates and two new stock picks per month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*.

View the 10 stocks

*Stock Advisor returns March 11, 2024

Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. James Brumley has positions at Alphabet. The Motley Fool holds positions in and recommends Adobe, Alphabet, Amazon, Nvidia, and The Trade Desk. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.

3 Unstoppable Tech Stocks That Will Take You From Almost Nothing to $500,000 and Beyond Originally published by The Motley Fool

Leave a Reply

Your email address will not be published. Required fields are marked *