Investing in Innovation: 3 Tech Stocks to Watch in July 2024

In the last decade, investors have made a fortune from tech stocks. Despite headwinds in the broader economy, the technology sector’s resilience remains unwavering.

The tech industry consistently develops and engages with relentless advancement across hot sub-sectors such as artificial intelligence (AI), cybersecurity, cloud solutions, and social media. The upswing in AI innovation, in particular, has contributed to higher valuations, which is always good news for investors.

The business offers enormous promise, with Goldman Sachs predicting that AI-driven investments would reach a staggering $200 billion globally by 2025. The increased usage of AI is expected to improve the financial performance of many enterprises.

Given this momentum, these three tech stocks are poised for continued growth. Their stock prices are still soaring, and everything points to the fact that this will not change anytime soon. Thus, it is the perfect time for those who want to invest in these companies and scoop out mind-boggling returns.

Tech Stocks: Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) is a no-brainer when investing in technology. It has excellently established a leading presence in fields like cloud computing and AI. This emphasis has pushed its stock price to new levels, with a 34% rise over the past year (as of writing).   

The company delivered superb top and bottom-line growth in the third quarter. Microsoft’s success this quarter was driven by its cloud sector and significant AI advancements, which are now closely integrated. The cloud division alone raked in $35.1 billion in revenue, a 23% increase year-over-year (YOY). Specifically, Azure’s revenue surged by 31%, indicating strong demand for its services and giving Amazon Web Services (AWS) a run for its money.

Additionally, Microsoft’s partnership with OpenAI is turbocharging its cloud strategy. With exclusive access to OpenAI’s coveted AI technologies, Microsoft is infusing them into its product line, which includes Azure, Bing, and Microsoft 365. This infusion makes these platforms more efficient and user-friendly, directly contributing to sustained financial health. Wall Street analysts are equally upbeat, eyeing a robust 10.8% upside potential for the stock.

Meta Platforms (META)

Source: Chinnapong / Shutterstock.com

Meta Platforms (NASDAQ:META) is always at the forefront of innovation with its revolutionary technologies. The stock is trading near its all-time high and has been a great performer, with outstanding returns year after year.

In the latest quarter alone, Meta reported a whopping $36.5 billion in revenue and $12.5 billion in free cash flow, marking a robust 34% cash flow margin. Its balance sheet is equally formidable, boasting $58.1 billion in cash. Meta is using these hefty cash reserves in some pretty exciting ways.

One major initiative is the injection of billions into its Reality Labs division, spearheading metaverse technology. Additionally, Meta is making advancements in virtual reality (VR) and generative AI. For instance, they’ve launched the Llama 3 language model and introduced an innovative AI image generator in WhatsApp.

Concurrently, Meta is utilizing its financial power to reward shareholders by paying its first dividend and spending $50 billion for share repurchases.

Super Micro Computer (SMCI)

Source: T. Schneider / Shutterstock.com

Last but not least, Super Micro Computer (NASDAQ:SMCI) has found its groove in the advanced server tech space. SCMI’s recent inclusion in the S&P 500 is just the start of its expansive growth. This integration has led to a notable surge in its stock price, as evidenced by an increase of 228.9% over the last year.

Another big part of this success is SMCI’s strong link with Nvidia (NASDAQ:NVDA), which has been a real game-changer. It has taken things to the next level by integrating Nvidia’s advanced processors into their motherboards.

Moreover, SCMI’s focus on high-performance, customizable servers, especially its Direct Liquid Cooling (DLC) systems, further accelerates AI workloads. By Q4 2024, they’ll have secured their AI server market share, delivering over 1,000 DLC racks of NVIDIA HGX AI supercomputers to three major customers.

Financially, SCMI smashed analysts’ expectations. The company reported stellar earnings in Q3, with revenue soaring 200% YOY to $3.85 billion. Net income also shot up 367% to $402.5 million. These advancements clearly indicate the rapid escalation of the stock.

On the date of publication, Nabeel Bukhari did not hold (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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.