The allure of millionaire-maker tech stocks can prove irresistible for the daring investor, particularly those willing to bank on the sprawling innovation landscape for life-changing returns.
Amid the rapid acceleration of digital innovation, the technology space brims with high potential tech stocks, which could prove to be golden tickets for unparalleled market upside.
From the labyrinth of artificial intelligence to the pioneering realm of advanced energy solutions, tech has woven a tapestry of success stories.
Yet, it’s crucial to note that not all tech stocks are created equal. Hence, as you read along, you’ll find undervalued tech stocks on the brink of explosive growth.
Let’s look at seven millionaire-maker tech stocks to watch that continue to fly under the radar and guide you on your wealth-building journey.
Alphabet (NASDAQ:GOOG) has effectively etched its mark as a juggernaut in the realm of search, boasting a massive presence in AI.
Some would argue that it missed a step or two in the AI wars among the top tech giants, lagging its rivals in the stock market this year.
However, its strategic focus on integrating AI capabilities, with the release of its powerful chatbot Bard, YouTube’s robust presence, and Google Cloud’s expansion, have positioned the firm for impressive long-term expansion.
It wrapped up another impressive quarter, marked by comfortable beats across both lines. It delivered a whopping $74.6 billion in sales in its second quarter, up over 7% year-over-year.
CEO Sundar Pichai’s speech during its second-quarter earnings call indicates the firm’s AI-first strategy and how it’s the most significant existential challenge to conquer. Hence, the recovery narrative for Alphabet is solid at this point.
China offers a blend of tremendous potential and substantial risks, a narrative crystallized with multiple tech players, including eCommerce giant Alibaba (NYSE:BABA), in the government’s cross-hairs.
Amidst this complexity, Alibaba seems to be back in its stride again, treading the turbulent waters of China’s AI industry with aplomb. The tech behemoth’s introduction of Tongyi Qianwen, a large language model to power digital assistants, manifests its innovative gene.
The founder of Alibaba’s cloud division assumes the mantle of its AI lab in Zhejiang province. This strategic maneuver will probably add more value to BABA stock and its financials over the long term.
Though its core businesses have struggled, the firm reported a 2% year-over-year sales growth figure in mid-May. Hence, despite the short-term concerns, the long-term opportunity for investors remains as attractive as ever in BABA stock.
Microsoft (NASDAQ:MSFT) is a master of innovation and remains an appealing choice for long-term investors.
It boasts a powerful portfolio with several robust segments.
The stock is up by more than 40% this year due to its early adoption of AI and the heartening results from its Azure cloud segment. Azure delivered a commendable 27% growth in its first quarter, followed by a remarkable 15% bump in the second.
The cloud may serve as Microsoft’s growth locomotive in the near term, but CEO Satya Nadella sets his sights on AI as a future expansion platform. At present, AI is an impressive novelty with limited commercial value.
However, the narrative could quickly change as Microsoft weaves AI into its existing product suite. Additionally, it sits comfortably on its humongous net cash pile of more than $50 billion, primed for strategic long-term investment and innovation.
Though the electric vehicle sector is notoriously unpredictable, Tesla (NASDAQ:TSLA) has consistently proven to be a game-changer in the space.
Its robust second-quarter results have drawn attention recently. Though it surpassed earnings and revenue estimates, Tesla’s shares took an unexpected hit. It delivered a heartening 47% yearly revenue surge to $24.9 billion with earnings per share of 91 cents.
Tesla is looking to push through in the autonomous driving sphere, a sector poised to deliver the goods for the EV behemoth over the long term.
It recently earmarked over $1 billion for enhancing its supercomputer Dojo’s capabilities, inching closer to achieving peak efficiency in autonomous driving.
Despite recent strategic decisions, including Cybertruck production slowdown and price reductions affecting profit margins, market sentiment has turned unfavorable. Hence, it’s probably the right time to pounce on TSLA stock.
Himax Technologies (HIMX)
Taiwan-based Himax Technologies (NASDAQ:HIMX) might be a modest player in the vast semiconductor landscape and is poised to make massive long-term strides in the upcoming years.
According to Fortune Business Insights, This powerful contender could gain substantially from a semiconductor industry that’s likely to bloom from $527.8 billion in 2021 to an astounding $1.38 trillion by 2029.
It has the backdrop of a resurgent sector and growth catalysts at hand, namely the economic recovery in China and the EV revolution.
Encouragingly, its sound financial health, evidenced by its strong cash reserves of more than $200 million and long-term debt of $41 million, points to an encouraging time ahead.
Himax Technologies has multiple growth levers and a robust balance sheet. For investors with an eye on the long-term, this under-the-radar stock could be a rewarding contrarian pick.
With a fresh leadership lineup and a reinvigorated business model, Splunk (NASDAQ:SPLK) is in a rather exciting transformation phase.
The transition from licensing to a software-as-a-service subscription model was rather sluggish, but the tides are turning in their favor. Tipranks analysts project a healthy 16% upside from its current levels, signaling a potential investment opportunity.
Splunk’s first quarter of 2024 heralded stellar numbers. A 30% year-on-year jump in cloud sales, touching $419 million, and an impressive free cash flow of more than $480 million are testaments to the company’s sturdy footing.
Also, with a sizable $1 billion earmarked for research and development, the firm is positioned to navigate an innovation-led growth path.
Furthermore, Splunk’s security and observability segment boasts a staggering $100 billion total addressable market. This spells a promising forecast for the next half-decade, making Splunk an enticing tech stock.
ACM Research (ACMR)
ACM Research (NASDAQ:ACMR) continues to turn heads with its financial performances, registering double-digit growth across both lines year-over-year.
According to Seeking Alpha analysts, it’s anticipated to exhibit a solid 40% revenue growth this year, followed by 20% and 15.8% over the subsequent two years.
Despite having stellar financial health, ACM stock trades at just 1.4 times forward sales estimates. That is roughly 51% lower than its sector average.
With ACM’s massive exposure to China fueling geopolitical risk apprehensions, its stock price remains mighty attractive. Nevertheless, ACM’s potential as a high-growth player shouldn’t be underestimated.
Its growth trajectory paints an encouraging picture, setting the stage for the company’s promising future in the semiconductor industry.
On the date of publication, Muslim Farooque 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.