HomeMarket News3 Tech Stocks That Could Be the Next Microsoft: May Edition  

3 Tech Stocks That Could Be the Next Microsoft: May Edition  

Actionable Trade Ideas

always free

Tech stocks to buy - 3 Tech Stocks That Could Be the Next Microsoft: May Edition  

Source: whiteMocca / Shutterstock

Finding the best tech stocks to buy that can perform like Microsoft (NASDAQ:MSFT) can feel like searching for a needle in a haystack. Yet, investors still hold a sense of pride embarking on this journey given the potential immense rewards. 

Microsoft’s meteoric rise over the last several decades from a small software company to a multi-trillion dollar titan serves as a beacon of hope and inspiration. This is why companies with the strong liquidity at the forefront of emerging technologies like artificial intelligence hold the most promise for replication. The most prudent strategy would be to consider Microsoft’s competitors, as they statistically have the best shot at swelling to the $3 trillion club. 

By examining these innovative companies with unprecedented growth potential, we can glean valuable insights into the possible contenders for the tech crown. Now, let’s discover the top tech stocks to buy with the potential to replicate Microsoft’s growth trajectory!

Nvidia (NVDA)

Microchip GPU with Nvidia logo in the background. High quality photo. NVDA stock

Source: Rokas Tenys / Shutterstock.com

Nvidia (NASDAQ:NVDA), the leading provider of advanced graphics processing units (GPUs), has emerged as a dominant force in the AI revolution. Its GPUs are widely used in data centers, gaming and autonomous vehicles, powering the next generation of AI applications.

Nvidia has been on a roll after delivering ground breaking fiscal 2024 earnings results. Revenue increased 126% YOY to $60.9 billion, with EPS up 586% to $11.93 per share. The company has pioneered the development of GPUs, which are crucial for the advancement of generative AI and accelerated computing applications. Nvidia’s Co-Founder and CEO, Jensen Huang has emphasized that generative AI is the single biggest computing transformation since the birth of the internet. This is important information that shouldn’t be glossed over, which will contribute to the company’s growth over the next decade. It also holds a staggering market share in AI GPUs. This hardware is crucial for the advancement of generative AI, LLMs and other advanced AI applications. This makes Nvidia one of the best tech stocks to buy to replicate Microsoft’s growth track.

Amazon (AMZN)

amazon (AMZN) sign with dark background

Source: Eric Broder Van Dyke / Shutterstock.com

Amazon (NASDAQ:AMZN), the e-commerce and cloud computing giant is undoubtedly one of the best tech stocks to buy in May. After laying the groundwork in 2023, Amazon is on pace to deliver another record year in FY24.

While Amazon’s expertise lies in e-commerce and cloud computing, it is quietly becoming a major AI player. The rapid growth of generative AI applications and LLMs like ChatGPT, is a positive tailwind for Amazon’s AI strategy. Its full-stack generative AI platform, Amazon Bedrock, provides developers with a one-stop-shop to build and scale generative AI applications. Moreover, its customer EC2 deep learning chip with over 100b+ parameters is designed to process the most demanding AI workloads. It is already being used by customers like Databricks and Ricoh. The latest Q1 FY24 results have showcased the true potential of Amazon’s diversified business. With operating income more than tripling in the quarter, AMZN stock can be the next trillion-dollar juggernaut.

Alphabet (GOOG, GOOGL)

Alphabet Inc. (GOOG, GOOGL) and Google logos seen displayed on smartphones. The Google stock split is happening today.

Source: IgorGolovniov / Shutterstock.com

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), the parent company of Google, is a global leader in search engine technology and advertising. It also continues to make strategic investments in artificial intelligence, with its Gemini LLM rivaling OpenAI’s ChatGPT. 

Alphabet is embracing the dawn of artificial intelligence, integrating it across its entire technology stack. This AI-powered growth is spilling into its powerful growth engines including Google Search and YouTube. While interest rates remain high, other economic indicators suggest that the economy is improving. More specifically, the advertising market is rebounding from its slump beginning in the back half of 2022. This has been advantageous for Alphabet, bolstering its revenue growth and operating income in the first quarter of 2024. Furthermore, Alphabet Gemini LLM is constantly improving. The release of Gemini 1.5 Pro this month was a strategic move, offering the longest context window of any foundational model. If you’re looking for the next best tech stocks to buy that could be the next Microsoft, GOOG stock should be one of the first places to look.

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.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.