2 Millionaire-Maker Technology Stocks To Consider In June | Old North State Wealth News
Connect with us

Economy

2 Millionaire-Maker Technology Stocks to Consider in June

Published

on

The tech market has made many millionaires over the years. In fact, investing mogul Warren Buffett’s holding company, Berkshire Hathaway, has dedicated over 40% of its portfolio to the industry. Meanwhile, Berkshire’s value increased at an estimated compound annual growth rate (CAGR) of 18% from 1965 to 2023, outperforming the S&P 500‘s annual return of about 10%.

Of course, past growth doesn’t always guarantee future gains. However, advances in budding markets like artificial intelligence (AI), cloud computing, e-commerce, and more suggest tech still has plenty more to offer investors over the long term. The AI market on its own is expected to grow at a CAGR of 37% until at least 2030, which would see it hit nearly $2 trillion in spending.

So, it’s not too late to consider buying these two millionaire-maker technology 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 critical for computing tasks. While the company has retained a majority market share in CPUs, a boom in AI has shifted chip demand. Graphics processing units (GPUs) have become crucial to the tech market with their ability to handle the intensive workloads that come with training AI models, rendering video games, and mining cryptocurrency.

The changes in the industry put Intel on the back foot while GPU leader Nvidia enjoyed soaring earnings and stock growth. However, Intel has pivoted its business to AI and could deliver major gains in the coming years. In April, the company unveiled AI-enabled Xeon 6 processors and its Gaudi 3 accelerator, which Intel has said delivers “50% on average better inference and 40% on average better power efficiency than Nvidia H100 — at a fraction of the cost.”

In addition to new product designs, Intel is vastly 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 AI. The move could allow Intel to profit from rising chip demand across the industry by even manufacturing chips for its competitors.

Of course, manufacturing is costly, and it will take time for Intel to see returns on its hefty investment. However, plans to prioritize opening plants in the U.S. could see it gain some of tech’s most prominent players as clients.

Intel’s stock is trading at about 28 times its forward earnings, making it a significantly better value than fellow chipmakers Nvidia and Advanced Micro Devices. And with solid growth opportunities across tech, Intel is a company that could make you a millionaire with the right investment.

2. Amazon

After a stellar growth year, it’s hard not to be bullish about Amazon (NASDAQ: AMZN). The company is up by nearly all accounts since the start of 2023, as seen in the chart below.

AMZN Chart

Amazon has enjoyed immense growth in its stock price, quarterly revenue, operating income, and free cash flow. And yet, its price-to-sales ratio of about 3 suggests it remains a bargain buy.

The company has benefited from an impressive turnaround in its e-commerce business after an economic downturn in 2022 led to steep declines. Easing inflation and strategic cost-cutting measures have paid off for Amazon and illustrated its ability to navigate tricky market conditions successfully.

In its first quarter of 2024 (ended in March), Amazon’s revenue increased by 13%, outperforming Wall Street estimates by $750 million. Its retail segments posted similar sales growth between 10% and 12%. Meanwhile, operating income between its North American and international divisions hit a combined $6 billion, significantly improving on the $349 million in losses it experienced the previous year.

Amazon has become a household name worldwide 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-maker. The tech giant’s cloud platform, Amazon Web Services (AWS), posted revenue gains of 17% year over year in its latest quarter. Meanwhile, operating income nearly doubled as it hit over $9 billion, outperforming profits from Amazon’s entire retail business.

AWS is investing billions into expanding its AI offerings and has the cash to continue doing so well into the future. The company has become one of the biggest threats in the budding AI market, which will likely boost earnings for years.

As a result, Amazon’s stock is a no-brainer and could make you a millionaire as the company continues to thrive in e-commerce and develop its position in AI.

Should you invest $1,000 in Intel right now?

Before you buy stock in Intel, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $830,777!*

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

See the 10 stocks »

*Stock Advisor returns as of 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in 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 Millionaire-Maker Technology Stocks to Consider in June was originally published by The Motley Fool

Read the full article here

Trending

Copyright © 2024 ONSWM News. Content posted on the Old North State Wealth News page was developed and produced by a third party news aggregation service. Old North State Wealth Management is not affiliated with the news aggregation service. The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date the articles were published. The information presented is not an offer to buy or sell, or a solicitation of any offer to buy or sell, any of the securities discussed.