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The Bulls Are Running: Analyzing the Top Stock Gainers of the Month

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The Bulls Are Running: Analyzing the Top Stock Gainers of the Month

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When it comes to stock investing, evidence is key. The allure of companies with 20% returns in a single month is undeniable. It’s like striking gold in a market full of ores. While the prices aren’t bargain-basement, these firms are industry giants with the capacity for exponential growth. Holding onto these stocks could lead to substantial profits. Let’s delve into the top stock movers of March and see what’s fueling the fire. 

Chart-Toppers: Nvidia (NVDA)

Nvidia logo seen on smartphone which is placed on pile of US dollar bills. Concept. Selective focus. Stocks to buy like Nvidia

Source: Ascannio / Shutterstock.com

Leading the tech pack, Nvidia (NASDAQ:NVDA) has become synonymous with success in artificial intelligence (AI). Soaring 20% in a month and an impressive 97% year-to-date, NVDA has been a cash cow for many investors. The company’s momentum seems unstoppable, leaving competitors in the rearview mirror. Despite the intensifying competition, catching up to Nvidia’s level seems like a distant dream.

As long as supply and demand remain unbalanced, Nvidia will continue to wield its pricing power and churn out robust financials. Periodic product upgrades keep their offerings in high demand, ensuring a firm grip on market share. Noteworthy is the recent launch of B200, touted as the ‘world’s most potent AI chip,’ solidifying their dominance in the sector. 

Capitalizing on the success of AI chips, the B200 offers superior speed at a fraction of the previous cost, boasting lower energy consumption. The surge in chip demand bodes well for Nvidia, particularly with numerous global entities relying on their AI services. With stellar fundamentals expected throughout the year, Wall Street darling NVDA is on a trajectory towards the $1,000 milestone and beyond. UBS analysts have upped the ante, setting the stock’s price target at $1,100. This is one ride that could make investors exceptionally wealthy, as evidenced by the recent gains.

Cloud Champion: Okta (OKTA)

A magnifying glass zooms in on the Okta (OKTA) logo.

Source: Lori Butcher / Shutterstock.com

Posting impressive gains of 22% for the month and a solid 26% year-to-date, Okta (NASDAQ:OKTA) shines as one of March’s standout performers. Renowned for crafting identity access management solutions for cloud platforms, this cybersecurity stalwart is riding high on the cloud computing wave. With the escalating need for cloud security, Okta stands to gain substantially from this evolving landscape.

The company’s services cater to managing employee, customer, and partner identities, acutely addressing the pressing concerns of cyber threats. Surging demand for protection against hackers positions Okta as a prime beneficiary. The stock’s pandemic-induced rally catapulted it to dizzying heights of $291 in December 2021, though a subsequent correction followed. However, the latest quarterly results showcased Okta surpassing expectations and hiking its yearly sales projections.

Boasting 120 new clients with annual contracts totaling $100,000, Okta attained a remarkable 19% YoY revenue spike alongside a 14% increase in customer base. Moreover, the company’s cash flow doubled compared to the previous year, underscoring its financial prowess. Forecasts for the next quarter place revenue in the $603 million range, representing a 17% YoY surge. Bolstered by stellar earnings and optimistic projections, Okta is primed to sustain its upward trajectory. Cementing its position as a financial frontrunner, the stock has received multiple price target hikes from industry analysts in light of its stellar performance.

Hardware Hero: Super Micro Computer (SMCI)

In this photo illustration, the Super Micro Computer, Inc. (SMCI) logo seen displayed on a smartphone screen

Source: rafapress / Shutterstock.com

While Nvidia has hogged the limelight, Super Micro Computer (NASDAQ:SMCI) has quietly outpaced its tech peer. Boasting a staggering 265% year-to-date surge, SMCI has left many in awe with an awe-inspiring 840% yearly jump, currently priced at $1,042. Even surpassing Nvidia’s price, SMCI maintains a symbiotic relationship with the chip giant.

Nvidia heavily relies on Super Micro Computer for the servers capable of running its AI semiconductors and microchips. Thus, any success enjoyed by Nvidia inevitably trickles down to benefit SMCI. With the escalating demand for Nvidia’s chips, SMCI is poised for dramatic growth in the upcoming months.

Amid heightened expectations surrounding Nvidia’s cutting-edge Blackwell B200 chips, the outlook remains optimistic. While SMCI is positioned to be a coveted asset this year, its fortunes are inextricably tied to Nvidia’s performance. Given the choice between Nvidia and SMCI, the former would be my pick. Although SMCI is set to witness a surge in popularity this year, its prosperity is heavily contingent on its affiliation with Nvidia.

Receiving accolades for its solid second-quarter performance, SMCI boasted $3.66 billion in sales and $296 million in net income. Outlook for the current quarter places sales at $3.7 billion, signaling continued growth. With Northland raising the stock to an outperform rating and JP Morgan assigning an overweight status with a target price of $1,150, SMCI is poised for an eventful journey ahead.

As of the publication date, Vandita Jadeja did not hold any positions (directly or indirectly) in the securities referenced in this article. The viewpoints expressed in this article are solely those of the author and adhere to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja, a CPA and freelance financial copywriter, is an avid reader and writer with a penchant for stock insights. Her command over words and analytics equips her to provide lucid stock analyses.

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