7 Tech Stocks With Serious Potential to Make You a Millionaire


  • Broadcom (AVGO): The chip maker and software giant is benefitting from artificial intelligence tailwinds.
  • Supermicro (SMCI): The company impressed many investors during earnings and is a prime candidate for S&P 500 inclusion.
  • Axcelis Technologies (ACLS): The small semiconductor stock has a low valuation and strong financials.
  • Continue reading to discover the remaining tech stocks with serious potential to make you a millionaire.
tech stocks - 7 Tech Stocks With Serious Potential to Make You a Millionaire

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Investing in tech stocks can get you closer to your financial goals. Time in the stock market beats timing the stock market, and you can experience higher gains if you focus on the right sectors.

Tech stocks have been a promising avenue for many years. This sector is filled with innovation and firms that consistently deliver double-digit year-over-year revenue growth. If you want to get closer to your financial objectives, you may want to consider these top tech stocks.

Broadcom (AVGO)

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Broadcom (NASDAQ:AVGO) stock has rallied as artificial intelligence investments are picking up. The company is well positioned with its Trident 5-X12 chips to gain market share in the artificial intelligence industry. 

AI tools need good chips to run smoothly. In fact, they need chips from companies like Broadcom to even function. While artificial intelligence represents one growth opportunity, many industries heavily rely on chipmakers.

You’ll find semiconductors in computers, smartphones, refrigerators, cars, and other resources. As long as these products stay in demand, chip makers like Broadcom will continue to produce and sell their chips.

The Trident 5-X12 consumes 25% less power per 400G port than the Trident 4-X9. The chip offers many benefits, including NPL programmability and a bandwidth that’s 16.0 Terabits per second.

Broadcom’s commitment to improving its chips will help it gain market share and remain a top choice for many corporations, making it one of the tech stocks not to miss.

Supermicro (SMCI)

Supermicro (NASDAQ:SMCI) is up 600% over the past year and can realistically extend its gains throughout 2024. The company has several catalysts in its favor.

The first catalyst is the rising demand for Supermicro’s servers. These servers are built to handle the high workload of artificial intelligence.

Corporations are scrambling to leverage AI, and Supermicro has become the equivalent of a shovel seller in the middle of a gold rush. 

The company’s revenue and earnings growth both show a promising opportunity. Supermicro reported 103% year-over-year revenue growth and 68.2% year-over-year revenue growth in Q2 FY24

The company’s guidance calls for $14.3 billion to $14.7 billion in revenue for fiscal 2024. The midpoint represents a 103.7% year-over-year increase compared to the $7.12 billion in FY 2023 revenue

While investors are excited about the company’s position in the AI industry, another opportunity is present in the background. Supermicro fulfills the requirements for inclusion in the S&P 500. Fund managers will have to load up on the stock to continue mirroring the S&P 500. 

As Supermicro’s market cap grows, fund managers of the S&P 500 will have to buy more shares. That’s because the S&P 500 uses weighted averages for its positions. Tech stocks with higher market caps have larger positions in the index than equities with lower market caps. 

Axcelis Technologies (ACLS)

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Axcelis Technologies (NASDAQ:ACLS) produces equipment that top semiconductor corporations use to produce chips. The company’s excellent position in the semiconductor industry has resulted in a 523% gain over the past five years.

Axcelis Technologies regularly reports high revenue and earnings growth alongside net profit margins above 20%. The company reported 27.6% year-over-year revenue growth and 63.7% year-over-year net income growth in the third quarter of 2023.

The semiconductor firm closed out the quarter with a $1.2 billion backlog. That backlog is higher than what the company projects to earn throughout 2023. An extensive backlog and enticing growth rates can help Axcelis Technologies can more market share and reward long-term investors.

Analysts are feeling bullish about Axcelis Technologies and believe the stock has more to gain. Among six analysts, the average price target is $164.67 which implies a 23.4% upside. Impressive financial growth combined with a 19 P/E ratio makes the projected price target plausible.

HubSpot (HUBS)

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HubSpot (NYSE:HUBS) is one of the more interesting tech stocks out there because it offers enticing revenue and customer growth that can turn the equity into a long-term winner.

The corporation reported 26% year-over-year revenue growth and 22% year-over-year customer growth in Q3 2023. The company closed out the quarter with over 194,000 customers.

HubSpot generates revenue from its customer relationship management software. Businesses can use HubSpot to engage with current customers and attract new prospects. Customers pay a high price for the software. The average subscription revenue per customer came to $11,520. 

Many investors have noticed HubSpot stock and bid it up significantly. The 1-year gain stands at 68% while the 5-year gain is currently 270%. 

HubSpot has 23 ratings which include 21 “Buy” ratings. The highest price target of $700 implies a 14.4% gain from the current price point.

A profitable quarter can help HubSpot realize this price target, and that quarter may be coming up. HubSpot only reported a $5.5 million net loss in the third quarter which was a good improvement over its $31.4 million net loss in the same period last year.

Duolingo (DUOL)

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Duolingo (NASDAQ:DUOL) is checking all the boxes you would expect from a growth stock.

Revenue increased by 43% year-over-year in Q3 2023 and the company reported a profitable quarter. This switch to profitability can cause meaningful profit margin expansion in the next few quarters.

Duolingo is also getting more traction on its app. Monthly active users increased by 47% year-over-year while the number of daily active users surged by 63% year-over-year.

Total bookings and subscription bookings had year-over-year growth rates of 49% and 54% year-over-year respectively. Those backlogs imply Duolingo will continue to report exceptional revenue growth.

The stock has rallied by 84% over the past year and trades at a $7.5 billion market cap. The average analyst price target of $198 implies a 10.7% upside. The highest price came in at $230 and suggests the stock will rally by roughly 28% from current levels. 

Investors will have to be patient with this stock due to its vast growth potential being paired with a lofty valuation. The stock trades at a 95 forward P/E ratio and a 17 price-to-sales ratio. The upside seems promising, but the valuation is a risk to keep in mind.

ServiceNow (NOW)

ServiceNow office building in Silicon Valley;
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ServiceNow (NYSE:NOW) is a cloud computing and cybersecurity stock that has comfortably outperformed the market. The stock has gained 72% over the past year and is up by 242% over the past five years.

Shares trade at a lofty 59 forward P/E ratio but rapid net income growth is making the valuation look more reasonable. Net income more than tripled year-over-year in the fourth quarter of 2023. During that same quarter, total revenue increased by 26% year-over-year. 

The company’s entry into generative artificial intelligence gives investors another reason to feel confident in the equity. ServiceNow Chairman and CEO Bill McDermott offered these optimistic statements in the press release.

“Generative AI is injecting new fuel into our already high‑performing engine. ServiceNow’s intelligent platform for end‑to‑end digital transformation is driving massive leaps in productivity and explosive growth. This is a breakthrough moment,” the statement said.

Analysts are in agreement about a breakthrough moment on the way. The stock is rated as a “Strong Buy” with 28 out of 29 analysts rating it as a “Buy.” The average price point suggests an 8.4% upside while the highest price target of $910 suggests a 16.5% upside.

Palo Alto Networks (PANW)

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Palo Alto Networks (NASDAQ:PANW) is a high-flying cybersecurity stock that has gained 121% over the past year and has a 5-year gain of 361%. Revenue and net income growth have excited many investors.

The firm reported 20% year-over-year revenue growth in 1Q FY24. The growth in remaining performance obligations came in at 26% year-over-year and outpaced revenue. That’s a good sign for continued revenue growth. 

Palo Alto Networks also reported 871% year-over-year net income growth. Rapidly expanding profit margins can reduce the stock’s P/E ratio and bring more value to investors. 

Demand is growing for Palo Alto Networks’ cybersecurity solutions because of the rise of cyber attacks. There was a 37% year-over-year increase in multi-extortion ransomware attacks and a 28% year-over-year increase in the average ransomware payment

Cyber attacks can get expensive in a hurry because of lost assets and a damaged reputation. Many businesses would rather work with Palo Alto Networks than risk becoming victims of cyber attacks.

On this date of publication, Marc Guberti held long positions in AVGO, SMCI, ACLS, and NOW. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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