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Many technology companies have created innovative products and services that challenge the possible. These products and services are also highly profitable for long-term investors. Which brings us to this list of must-buy tech stocks.
It's easy to think about what would have happened if investors had accumulated assets; Amazon (NASDAQ:AMZN) For 1990s stocks, investors should focus on current opportunities. There are also tech stocks that could double from here and benefit investors by continuing to expand.
Investors looking for must-buy tech stocks to lead the digital revolution should consider these three stocks.
Microsoft (MSFT)
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microsoft (NASDAQ:MSFT) has a long history of outperforming the market, and many of its major business segments continue to grow. The tech conglomerate grew 13% year-on-year in Q1 FY24.
Microsoft's cloud products and services are proliferating, contributing significantly to the company's success this quarter. Microsoft is building artificial intelligence into its cloud products to increase their value to businesses.
The company is also investing in quantum computing, which could be the next wave of innovative technology. Microsoft has enough capital to get a head start on innovative technology and acquire companies that win.
Microsoft stock is up 63% over the past year. The stock price has increased 293% over the past five years. Microsoft's net profit margin is close to 40% and its P/E ratio is 39x. Analysts expect an additional 10% upside based on the average price target of $442.70.
Super Micro (SMCI)
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super micro (NASDAQ:SMCI) Looks like it's ready for mirroring Nvidia (NASDAQ:NVDA) and deliver multiple quarters of strong revenue and profit growth. A high growth rate could drive the stock price significantly higher, even though it's up 538% over the past year.
Supermicro is at the center of the artificial intelligence boom with its advanced AI server and storage solutions. Artificial intelligence is revolutionary, but it requires significant computing power to work smoothly. Supermicro is seeing increasing demand for its solutions and expects this demand to continue for some time.
The company flourished long before artificial intelligence became mainstream. Companies use his Supermicro servers for cloud computing, 5G and other technologies. This explains why his stock price has risen more than 3,000% over the past five years. His one-year return for the company was impressive, but he has a track record of outperformance.
The profitable company currently has a P/E ratio of 44 times. Supermicro looks poised to ride his AI trend and create meaningful value for long-term investors.
ServiceNow (Now)
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ServiceNow (New York Stock Exchange:now) provides a cloud platform that enables more productive workflows across your organization. ServiceNow aims to define his 21st century enterprise software and has over 8,100 customers worldwide. Its customer base includes 85% of Fortune 500 companies.
ServiceNow leverages generative AI to create added value for customers. This new service contributed to ServiceNow's successful quarter and improved guidance.
The company's revenue growth continues to be strong, reaching 25.5% YoY in Q4 2023. The company has a 99% customer renewal rate and has 1,987 customers with annual revenue in excess of $1 million. GAAP net income was $295 million, representing 97% year-over-year growth.
ServiceNow has been an exceptional stock for several years now. The stock is up 74% over the past year and 247% over the past five years. The stock trades at a high forward P/E ratio of 59 times. However, this valuation can be easily overlooked if investors intend to hold this stock for at least five years.
On the date of publication, Mark Guberti held long positions in MSFT, SMCI, and NOW. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publication guidelines.
