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Investing in Tech: 3 Stocks That Could Make You a Millionaire by Retirement
Many people dream of having a $1 million retirement fund. However, a recent CNBC survey shows that only 16% retired with that amount, counting all their assets. To reach this goal, one of the best strategies is to set money aside and invest it in the stock market. Buyers might consider index funds like those following the S&P 500. This option tends to be safe over the long run, offering returns that align with market performance.
Alternatively, creating a personal stock portfolio can yield higher returns, albeit with increased risks of market underperformance and possible losses. If you are willing to embrace the risks of this latter method and are seeking tech stocks with potential for significant gains, here are three names that could quadruple in value over the next ten years. Achieving such growth would require profit increases of 15% annually. With a $250,000 investment divided among these stocks, you could potentially reach a $1 million portfolio by 2034.
1. ASML
ASML (NASDAQ: ASML) stands out in the tech sector with a strong competitive edge. The company manufactures lithography equipment vital for semiconductor production, holding a monopoly on advanced extreme ultraviolet (EUV) lithography systems. These machines are essential for producing today’s complex chips.
The company has expanded its technological lead through years of research and development, making it unlikely for competitors to catch up soon. With growing demand for advanced chip production, particularly from sectors such as AI, ASML’s performance is expected to rise in the coming years.
Currently, ASML’s market cap stands at $332 billion. If it rises by 300% over the next decade, the valuation could reach $1.33 trillion, a realistic target given the semiconductor industry’s expansion. Additionally, ASML offers a modest dividend that pays 0.8% yield, which when reinvested, could help accelerate investment growth.
2. Arm Holdings
Arm Holdings (NASDAQ: ARM) is another promising tech stock for long-term investment. Like ASML, Arm benefits from distinct advantages in the industry, particularly as AI technologies gain traction.
Unlike many competitors, Arm does not design its own chips. Instead, it licenses its technology to companies such as Apple and Nvidia, which incorporate Arm’s architectures into their own products. This is significant in smartphones, where Arm’s components are often favored for their lower power consumption compared to alternatives like the x86 architecture from Intel and AMD.
This efficiency also makes Arm’s technology appealing to data center operators, especially as AI applications require significant energy. With its promising profit margins and ongoing product development, growth of at least 15% yearly looks feasible for Arm in the next decade.
3. The Trade Desk
The shift from traditional advertising to digital marketing is unlikely to slow down, presenting opportunities for companies like The Trade Desk (NASDAQ: TTD). As the leading independent demand-side platform for digital advertising, The Trade Desk is well-positioned to capitalize on this trend.
Historically, The Trade Desk has outperformed both competitors and the general market. Its new AI platform, Kokai, enhances ad tracking and campaign management, allowing advertisers to respond to customer behavior more effectively. Even during tougher economic conditions, The Trade Desk has shown resilience and should be able to expand further as new advertising channels and platforms evolve.
Another Opportunity You Might Not Want to Miss
Do you ever feel you missed investing in major companies at the right time? Now might be a good moment to consider a new opportunity.
At times, analysts make a special recommendation known as a “Double Down” stock, signaling that a company’s value could significantly rise soon. If you think you’ve missed out on investing previously, now may be your chance. Looking at past performance:
- Amazon: Investing $1,000 back in 2010 would be worth $21,266!*
- Apple: A $1,000 investment in 2008 would be worth $43,047!*
- Netflix: If you put in $1,000 in 2004, it would amount to $389,794!*
Currently, there are “Double Down” alerts for three companies to watch closely. This could be a fleeting opportunity.
Discover 3 “Double Down” stocks »
*Stock Advisor returns as of October 7, 2024
Jeremy Bowman has positions in The Trade Desk. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Nvidia, and The Trade Desk. The Motley Fool recommends Intel and has short positions on options for Intel. Please review the Motley Fool’s disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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