The technology market has made many millionaires over the years. In fact, the holding company of investment magnate Warren Buffett, Berkshire Hathaway, has devoted more than 40% of its portfolio to industry. Meanwhile, Berkshire’s value grew at an estimated compound annual growth rate (CAGR) of 18% between 1965 and 2023, outperforming the S&P500The annual return of around 10%.
Of course, past growth doesn’t always guarantee future gains. However, advances in nascent markets like artificial intelligence (AI), cloud computing, e-commerce and more suggest that technology still has much more to offer investors over the long term. The AI ​​market alone is expected to grow at a CAGR of 37% through at least 2030, pushing it to nearly $2 trillion in spending.
So it’s not too late to consider buying these two million dollar tech stocks this month.
1.Intel
Intel (NASDAQ:INTC) was once a leader in the chip market, best known for its dominance in central processing units (CPUs), which are essential for computing tasks. Although the company has retained a majority share of the processor market, the rise of AI has changed demand for chips. Graphics processing units (GPUs) have become crucial in the technology market with their ability to handle intensive workloads related to AI model training, video game rendering, and cryptocurrency mining.
Industry changes put Intel behind as GPU leader Nvidia benefited from strong earnings growth and stock growth. However, Intel has has oriented its activity towards AI and could generate major gains in the years to come. In April, the company unveiled AI-enabled Xeon 6 processors and its Gaudi 3 accelerator, which Intel says deliver “50% better inference on average and 40% better power efficiency than Nvidia on average.” H100 — for a fraction of the cost. “
In addition to designing new products, Intel is significantly expanding its chip manufacturing operations. The company is working to generate revenue by making chips for other companies, which could secure it a lucrative position in the AI ​​field. The move could allow Intel to take advantage of growing demand for chips across the industry, even while making chips for its competitors.
Of course, manufacturing is expensive and it will take time for Intel to get a return on its heavy investment. However, plans to prioritize the opening of factories in the United States could allow it to attract some of the most important players in the technology sector as clients.
Intel’s stock trades at about 28 times forward earnings, making it significantly more valuable than fellow chipmakers Nvidia and Advanced microsystems. And with solid growth opportunities in the technology space, Intel is a company that could make you a millionaire with the right investment.
2. Amazon
After a year of exceptional growth, it’s hard not to be optimistic about Amazon (NASDAQ:AMZN). The company is up in almost all accounts since the start of 2023, as the chart below shows.
Amazon has seen immense growth in its stock price, quarterly revenue, operating profit, and free cash flow. And yet, its price-to-sales ratio of around 3 suggests that it remains a good deal.
The company has enjoyed an impressive turnaround in its e-commerce business after an economic downturn in 2022 led to sharp declines. Reducing inflation and strategic cost-cutting measures have paid off for Amazon and illustrated its ability to successfully navigate challenging market conditions.
In the first quarter of 2024 (ended March), Amazon’s revenue grew 13%, beating Wall Street estimates of $750 million. Its retail segments saw similar sales growth of between 10% and 12%. Meanwhile, operating profit between its North American and international divisions reached a total of $6 billion, a significant improvement from the $349 million in losses incurred the previous year.
Amazon has become a household name around the world thanks to its success in online retail. While it remains a promising part of the company’s business, Amazon’s role in cloud computing makes its stock a potential millionaire. The tech giant’s cloud platform, Amazon Web Services (AWS), reported revenue gains of 17% year-over-year in its most recent quarter. At the same time, operating profit nearly doubled to more than $9 billion, outpacing profits from Amazon’s entire retail business.
AWS is investing billions in expanding its AI offerings and has the cash to continue doing so in the future. The company has become one of the biggest threats in the burgeoning AI market, which is expected to boost its profits for years.
As a result, Amazon stock is a no-brainer and could make you a millionaire as the company continues to thrive in e-commerce and expand its position in AI.
Should you invest $1,000 in Intel right now?
Before buying Intel stock, consider this:
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 Intel was not one of them. The 10 selected stocks could produce monster returns in the years to come.
Consider when Nvidia made this list on April 15, 2005…if you had invested $1,000 at the time of our recommendation, you would have $830,777!*
Equity Advisor provides investors with an easy-to-follow plan for success, including portfolio building advice, regular analyst updates, and two new stock picks each month. THE Equity Advisor the service has more than quadrupled the return of the S&P 500 since 2002*.
*Stock Advisor returns June 10, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daniel Cook has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Advanced Micro Devices, Amazon and Berkshire Hathaway. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool has a disclosure policy.
2 Million Dollar Tech Stocks to Consider in June was originally published by The Motley Fool
