In the realm of finance, 2024 appears to be yet another year of triumph for tech stocks.
Following the impressive 43% surge of the Nasdaq Composite in 2023, with an even more substantial growth in the Nasdaq-100, the Nasdaq Composite has continued its upward trajectory in 2024, with a 9% increase as the first quarter draws to a close.
The driving force behind the sustained surge in tech stocks is the artificial intelligence revolution. However, this colossal growth isn’t solely due to AI; there are other factors at play fueling the remarkable rise in this sector. Continue reading to explore three tech stocks poised for remarkable growth.
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Microsoft: A Giant in Software Dominance
No prizes are awarded for originality in the stock market, yet Microsoft (NASDAQ: MSFT) remains a stalwart choice for investors.
As a titan in the tech industry, Microsoft has outmaneuvered its competitors to establish itself as the leading software provider in AI – at least for now. Through strategic partnerships with OpenAI, Microsoft has infused generative AI technology into a variety of products, including Azure cloud services, GitHub platform, and Office suite. The results are already evident. In the latest quarter, Microsoft attributed a significant six-point growth in Azure to AI services, propelling the overall segment by an impressive 30%, outstripping the growth of Amazon Web Services.
Furthermore, Microsoft’s recent acquisition of DeepMind co-founder Mustafa Suleyman from Alphabet positions the company for a continued lead in AI innovation. Suleyman, also the co-founder of Inflection AI, which recently closed its doors, saw Microsoft absorbing most of its talent.
Apart from its AI prowess, Microsoft’s unmatched diversification uniquely positions it to capitalize on the burgeoning AI landscape.
ACM Research: A Small-Cap Semiconductor Gem
ACM Research (NASDAQ: ACMR) is a low-profile semiconductor company specializing in highly advanced wafer-cleaning equipment crucial for semiconductor manufacturing.
Catering primarily to Chinese clients, including Semiconductor Manufacturing International Corporation – accounting for 16.5% of its revenue last year – ACM Research has started reaping the benefits of the AI wave. The company reported robust demand for its products in the latest quarter, garnering market share in the Chinese wafer fab equipment sector.
With a remarkable 43% uptick in revenue and a doubling in adjusted net income to $28.7 million, ACM is set to ride the surge in demand for advanced chips pivotal for AI, thus boosting the need for its cleaning equipment.
Add to this the stock’s undervaluation, trading at a mere 18 times earnings, signaling a promising path for further appreciation.
The Trade Desk: A Beacon in Adtech Innovation
Lastly, The Trade Desk (NASDAQ: TTD) emerges as another top tech stock beckoning investors.
As the premier independent demand-side platform (DSP) in adtech, The Trade Desk offers a cloud-based platform for ad agencies and brands to streamline their ad campaigns, poised to capitalize on several industry trends this year.
Leveraging the power of AI, The Trade Desk has introduced its innovative Kokai AI platform, utilizing deep learning algorithms in the digital media buying process, harnessing 13 million advertising impressions per second.
Moreover, The Trade Desk stands to benefit from the revival of the digital advertising market following a lull in 2022 and 2023 amid recession fears. This resurgence is expected to accelerate revenue growth, bolstered by Google Chrome’s phase-out of third-party cookies. This shift is anticipated to propel The Trade Desk’s alternate tracking tool, Unified ID 2.0 (UID2), into prominence. Already securing collaborations with global giants like Disney and Procter & Gamble, UID2 is well-poised for market dominance.
Rapid growth and robust profitability further enhance The Trade Desk’s appeal, portraying a consistent pattern of outperformance that is projected to persist in the future.
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John Mackey, former CEO of Whole Foods Market, under the Amazon umbrella, serves on The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, also contributes as a member of The Motley Fool’s board of directors. Jeremy Bowman holds positions in ACM Research , Amazon, The Trade Desk, and Walt Disney. The Motley Fool maintains positions in and recommends Alphabet, Amazon, Microsoft, The Trade Desk, and Walt Disney. Additionally, The Motley Fool advocates for long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool upholds a stringent disclosure policy.
The expressed views and opinions herein solely represent those of the author and may not align with those of Nasdaq, Inc.
