The Nasdaq-100 Technology Sector index achieved a remarkable growth of 414% over the past decade, significantly outpacing the S&P 500‘s 185% increase. Key contributors to this trend are advancements in disruptive technologies, particularly artificial intelligence (AI), which are predicted to have a major economic impact. Investors are advised to consider long-term investments in leading tech stocks such as Super Micro Computer (NASDAQ: SMCI) and Oracle (NYSE: ORCL).
Super Micro Computer has seen a staggering rise of 208% in 2024 and is projected to generate $14.9 billion in revenue for fiscal year 2024, more than doubling last year’s revenue of $7.1 billion. The AI server market is anticipated to reach $430 billion by 2033, with Super Micro expected to capture a 23% market share this year. Its current trading multiple is 4.4 times sales, below the sector’s 7.4 times, making it a compelling investment.
Oracle’s fiscal 2024 revenue rose 6% to $53 billion, with remaining performance obligations (RPOs) increasing 44% year over year to $98 billion, indicating a robust revenue pipeline driven by demand for cloud-based AI services. Analysts forecast double-digit earnings growth for Oracle in the next three fiscal years, and its stock is currently trading at 23 times forward earnings, below the Nasdaq-100 multiple, suggesting significant potential for further gains.
