We are finally starting to see positive market movement and the strength across the market could be here to stay. As a result, though, the buying window may be short for investors trying to make the most of discounted stock prices. So, which companies should you buy? Innovative tech stocks may be your best bet.
Tech suffered more than expected in 2022, but with earnings season upon us and inflation finally cooling, there’s a good chance that disruptive tech stocks will see major upside. In fact, InvestorPlace’s Luke Lango believes the outlook for tech stocks going into the summer is very positive. With solid Big Tech earnings over the next month or so, we could see a massive rally with tech investments gaining significantly.
Whether you’re looking for quick gains or intend to hold for the long term, here are three innovative tech stocks that could be game-changers in 2023.
Innovative Tech Stocks to Buy: Oracle (ORCL)
I’d call Oracle (NYSE:ORCL) a tech dinosaur for its longstanding presence in the industry and hold in the market. Having been in business for more than 40 years, the company has a solid presence and loyal customers.
The last time I recommended ORCL was before earnings, when shares traded at $89. ORCL may be under the radar, but the stock is up 13% so far this year and trading at $95 today. The stock is also up 30% over the past six months and recently hit a 52-week high.
That’s not it for ORCL stock, however. Shares could soon soar higher and hit a new high. That’s why now is the time to consider Oracle as one of the top innovative tech stocks for your portfolio.
Oracle has seen an improvement in its growth profile. If the company can manage to improve its operating margins, we could see especially solid revenue growth. In the third quarter, the company reported revenue of $12.4 billion and an operating income of $3.3 billion. Finally, the tech company also pays dividends and has seen eight years of consecutive dividend growth.
UBS analyst Michael Briest has a $90 price target and “hold” rating on ORCL stock. Meanwhile, Guggenheim analyst John Difucci has a $115 target and “buy” rating.
SoFi Technologies (SOFI)
Next on my list of innovative tech stocks is SoFi Technologies (NASDAQ:SOFI). While the world is worried about the safety and security of banks, this fintech company is making big moves in the industry.
In fact, this name is one of a few game-changing tech stocks that has had a wild ride lately. SOFI stock currently trades at just under $6 and once changed hands for as high as $25. However, shares are up about 30% year-to-date (YTD). Buying below $10 could be a great entry point for long-term investors.
SoFi offers services to more than 5.2 million members and recently announced the acquisition of Wyndham Capital Mortgage. This deal should enhance SoFi’s efficiencies, working in favor of the company and helping to drive mortgage growth.
The company’s recent financial results were impressive as well. For Q4 2022, revenue stood at $456.7 million. Full-year revenue came in at $1.57 billion as well, a big increase from $984.9 million in 2021. This is proof that the company’s business model can work and has the ability to grow.
SoFi has been consistently expanding its product offerings, from insurance to mortgages to credit cards. This will help drive growth in the coming years. By diversifying these offerings, the company will be able to enjoy multiple revenue streams. Fellow InvestorPlace contributor David Moadel believes SOFI stock could double from here.
The company also now offers up to $2 million of Federal Deposit Insurance Corporation (FDIC) insurance “through a network of participating banks” for its SoFi Checking and Savings accounts.
Innovative Tech Stocks to Buy: Nvidia (NVDA)
Last up, this list of top tech stocks would be incomplete without mentioning Nvidia (NASDAQ:NVDA). I have been a long-time supporter of NVDA stock and strongly believe in the company’s potential to report record revenue and take shares higher.
NVDA stock bottomed at $108 in October 2022 but has picked up pace since then. Today, shares trade for $268 apiece and are up more than 30% over the past 12 months as well as more than 80% YTD. Shares have grown by more than 370% in the last five years as well.
This semiconductor giant already has an established presence in the tech industry through its chips. Now, it’s making the most of the artificial intelligence (AI) boom. Nvidia GPUs have helped to train ChatGPT, for instance. But when it comes to the potential of AI, this is only the beginning.
Bank of America recently raised its price target for NVDA stock to $340 with a “buy” rating. HSBC also upgraded its target to $355, providing a “buy” rating. The firm believes Nvidia’s pricing power on AI chips will drive higher revenue and a higher valuation.
If you’re looking for a low-risk, high-reward tech stock, NVDA stock is an ideal bet.
On the date of publication, Vandita Jadeja did not hold (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.
