Investing in the top tech stocks has the potential to yield significant returns, paving the way for substantial wealth accumulation by 2035. The technology sector has consistently outperformed the market, and holds the largest weighting in the S&P 500 Index.
Companies at the forefront of emerging technologies such as artificial intelligence, cybersecurity, biotechnology and renewable energy are poised for rapid growth. As these technologies evolve, companies that adapt and lead in these domains will likely see exponential growth. However, it is important to highlight that investing in individual stocks carries risks and can be extremely volatile. Investors can capitalize on these trends by strategically investing in leading tech stocks and achieve millionaire status by 2035.
Let’s discover the top 3 tech stocks to buy so investors can join the millionaire’s club in the next decade!
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is one of the top tech stocks poised to create millionaires by 2035. The company’s growing market share in cloud computing and innovation in artificial intelligence (AI) provides ample room for growth.
Microsoft’s cloud computing division, Azure, continues to gain market share, rivaling Amazon Web Services. The cloud computing sector will continue to benefit from the increased digitization of businesses across every industry imaginable. Microsoft’s recent foray into artificial intelligence significantly enhances its long-term growth prospects. Its investments in OpenAI and integration of AI across its entire technology stack remains extremely promising. In its latest quarterly results,
Microsoft drove diversified growth, including notable strength in its cloud division. Cloud revenue increased 23% year over year to $35.1 billion, boosted by strong execution and expanding its customer base. Moreover, operating income swelled 23% year over year to $27.6 billion. With growth of the cloud computing market accelerating, MSFT stock remains one of the top tech stocks to buy to capitalize on this trend.
American Express (AXP)
American Express (NYSE:AXP), a leading financial services company, is undoubtedly one of the best tech stocks for investors aspiring to become millionaires. Since the pandemic, the business has done a complete 180, driving significant revenue and earnings per share growth.
American Express has invested heavily in digital platforms, mobile payment solutions and data analytics to provide more personalized experiences for its customers. This strategy has worked wonders for its business, particularly as the company shifts its focus to the Millenials and Gen Z segments. It is certainly taking advantage of this phenomenon, driving revenue growth, profits and new account openings.
In Q1 FY24, revenue increased 11% year over year to $15.8 billion. Millennial and Gen Z customer accounts grew 60% from the year prior, with new card acquisitions up sequentially in the quarter to 3.4 million. American Express’s credit quality remains best in class despite higher interest rates. As the economy gains strength, AXP stock will be one of the best tech stocks to outperform the market through 2035.
Godaddy (GDDY)
Godaddy (NYSE:GDDY) is a staple in domain registration, web hosting and website-building services. The company’s comprehensive suite of online tools and resources empower businesses and individuals to establish and maintain their online presence.
Godaddy’s robust business model, characterized by recurring revenue from domain registrations and website hosting, ensures a stable and growing income stream. Its focus on small and medium-sized businesses, user-friendly platform and strong brand recognition have contributed to its success. Moreover, its strategic acquisitions over the last decade and innovations, such as AI-driven customer support and advanced security features, further enhance its competitive edge.
The 2023 fiscal year was truly a transformative year for the company. Net earnings skyrocketed nearly 300% year over year, with significant EBITDA margin expansion. Growth is also not showing any signs of slowing, with net earnings up 747% in the first quarter of 2024. With the company set to join the S&P 500 Index on June 21st, it could be poised for further upside in the long term.
On the date of publication, Terel Miles 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.
