High-growth tech stocks pushed the S&P 500 and NASDAQ to new heights over the past couple of years.
AI-driven results set the stock market on fire, with the leading tech giants dazzling with stunning earnings. Moreover, with similar results expected from Big Tech ahead, the shrewd investor will want to load up on the best high-growth tech stocks before the earnings season kicks into high gear.
Additionally, the investment climate will likely get a huge boost from the potential rate cuts later this year. Moreover, the odds for multiple rate cuts got stronger following the Federal Reserve’s optimistic comments and a bullish report from Goldman Sachs on favorable easing conditions.
That said, it’s an opportune time for investors to wager on the best high-growth tech stocks to buy. These tech companies have continued posting double-digit growth despite the headwinds and are expected to continue delivering the goods for their shareholders.
High-Growth Tech Stocks: Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is a giant in the burgeoning semiconductor space that has brilliantly capitalized on the demand for AI technologies. Over the past few years, the rapid growth in the AI sphere has catapulted the firm’s sales from $23.88 billion in 2020 to a staggering $35.82 billion last year. This incredible trajectory underscores Broadcom’s massive growth runway and strategic positioning in the evolving AI space.
Furthermore, Broadcom’s performance has been nothing short of amazing, with its shares jumping upwards of 54% this year alone. Moreover, on the financial front, the firm has outperformed expectations in the past 10 consecutive quarters. In its second-quarter (Q2), Broadcom posted a remarkable 43% YOY jump in sales to $12.5 billion, beating estimates by $476 million. Notably, in Q2 alone, Broadcom generated a whopping $3.1 billion from its AI product line, throwing light on the long-term potential of its AI-driven investments.
Cloudflare (NET)
Content delivery network provider Cloudflare (NYSE:NET) is one of the most important companies powering the Internet. Its services form a critical component of the modern web, with most websites depending on its robust services. Over the years, it has only gotten more popular with its users due to growing security concerns and the expanding role of AI.
Moreover, given the mission-critical nature of its services, the firm has operated one of the most consistent businesses in its niche. Its 5-year revenue growth stands at a superb 47% while maintaining a solid 77% gross-margin over the same period.
In its most recent quarterly showing, its revenues surged 31% YOY, reaching an eye-catching $378.6 million. Additionally, the quarter was marked by record-breaking additions in large customers—those spending over $100,000, $500,000, and even $1 million annually. Hence, with Cloudflare continuing to ride multiple industry trends such as cloud migration, edge computing, and heightened cybersecurity, its future looks mighty promising.
Palantir (PLTR)
Big Data giant Palantir (NYSE:PLTR) has evolved from relatively humble beginnings. It was known for its big-ticket government projects but now boasts a dynamic presence in the commercial sector as well.
In Q1, the firm reported a 69% increase in commercial client count and a 40% jump YOY in commercial sales. Additionally, this stellar expansion was bolstered by adding 41 net new clients, which helped it wrap up its sixth consecutive quarter of GAAP profitability.
Also, the company’s momentum is further underscored by a massive $178 million contract win from the U.S. Army under the TITAN program. The huge contract underscores Palantir’s critical role and deep-seated involvement in the government sector.
Looking ahead, Wedbush analyst Dan Ives expects Palantir to be a potential standout in the Q2 earnings season. Additionally, Palantir’s attractive valuation makes it a remarkably compelling investment amidst the burgeoning AI market. Moreover, given its broadening reach across cybersecurity, energy, and defense sectors, Palantir is tough to ignore.
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
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
