Technological innovation has led to changes in just about every aspect of life. Whether you want to communicate with friends and family or you want to get a ride to a local venue, the way you do so may be different today than it was a few decades ago. Uber is a strong substitute for taxis, and you’ll likely call friends and family on a cell phone or message them on social media, rather than reaching out on a landline.
As technology continues to reshape our daily lives, the companies behind the biggest innovations generate massive profits. So today’s age of technological innovation can be a profitable time for the savvy investor.
Then again, it’s important to pick the stocks with the most potential for growth. Here are a few tech stocks that you should consider buying now:
Key Points:
- NVIDIA stock has real potential to climb after it releases earnings on August 28.
- Taiwan Semiconductor has a competitive advantage and will likely continue to grow.
- Now may be a good time to take another look at Enphase Energy.
- Are you looking for a tech stock that you can buy while the price is low and sell later for multiples of what you paid? Check out our brand new “The Next NVIDIA” report. You’ll learn about two stocks we believe have the potential to grow 10X or more ahead.
NVIDIA Has Earnings Coming Soon
Artificial intelligence is arguably the next big wave of innovation. Thanks to this technology, cars are beginning to drive themselves, and medical innovation is speeding up. Not to mention the impact it has on our daily lives. You can even open your blinds from across the country with a simple prompt to an app on your phone. And it’s difficult to talk about artificial intelligence without NVIDIA (Nasdaq: NVDA) coming up.
NVIDIA produces GPUs and other computer chips. And while that side of their business is booming, the company’s most significant source of revenue and profitability is its data centers. That makes sense. As AI continues to grow, data centers are in high demand. So growth in the data center side of the business isn’t likely to slow anytime soon.
That bodes well for the company as earnings season continues. NVIDIA will release its second-quarter earnings report on Wednesday, August 28. Analysts expect sales for the quarter to come in around $28.5 billion. Should that be the case, it will represent more than 100% growth in revenue on a year-over-year basis and likely form the foundation for a strong run in value.
It’s also worth mentioning that NVIDIA shares have risen historically following most earnings releases. So with an earnings report just around the corner, now may be the time to dive into the stock.
Taiwan Semiconductor Will Benefit From AI’s Continued Growth
AI isn’t possible without the latest and greatest in computer chips like GPUs and CPUs. While companies like NVIDIA and Advanced Micro Devices design these computer chips, they have little ability to manufacture them. That’s where companies like Taiwan Semiconductor (NYSE: TSM) come in.
Taiwan Semiconductor manufactures GPUs, CPUs, and other chips for companies like Amazon, Google, Meta, and others. It has been overwhelmingly successful in doing so too. The company makes up about 30% of the main index in the Taiwanese stock market.
The company announced earnings in July, showing incredible growth on a year-over-year basis. Revenue came in at $673.51 billion, up over 40% year over year. Net income came in at $247.85 billion, up over 36%, and earnings per share (EPS) came in at $9.56, also up over 36%.
It’s also worth noting that the company has little competition. While Intel can manufacture high-quality computer chips, it’s not yet able to manufacture the smallest and most advanced chips, like those produced by Taiwan Semiconductor. So as long as there’s growing demand for AI and consumer electronics, there will likely be growing demand for Taiwan Semiconductor’s products.
Enphase Energy Could Produce Big Profits
When you think of technology companies, you likely think of companies like Amazon, Google, NVIDIA, and others. But, there are many areas where technology makes a significant difference. One of those areas is in the production of energy.
As greenhouse gases continue to cause concern, clean energy technologies are emerging. Those include technologies like improved solar systems, wind systems, and water energy systems. Enphase Energy (Nasdaq: ENPH) is one of the companies leading the way in clean energy innovation.
The company designs and manufactures solar energy technologies like solar micro-inverters and battery energy storage. Enphase Energy also offers electric vehicle (EV) charging solutions.
But if you saw the company’s last earnings report, you may be surprised to find it on a list of stocks you should own. Revenue, net income, and earnings per share were all down significantly year over year. But, the market has already reacted to the missed earnings report, found support, and started climbing again. As investors regain bullish opinions about Enphase Energy and a push toward clean energy continues, this stock could continue to climb.
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