The technology sector has created numerous millionaires, as the Nasdaq-100 Technology Sector has increased by 362% since 2014, significantly surpassing other indices. S&P 500 The index increased by 179% during the same time frame. Technological advancements continuously drive the market ahead, with new discoveries prompting both consumers and businesses to upgrade their hardware and software regularly.
It is not unexpected that four out of the top five most valuable companies globally are technology giants. These companies are involved in various sectors such as consumer goods, software for enhancing productivity, semiconductor design, and online advertising. Emerging fields like artificial intelligence (AI) and cloud computing are major contributors to the industry’s expansion, making the leading companies in these areas appealing for investment.
Here are two technology stocks with the potential to make you a millionaire that you should consider purchasing before August ends.
1. Nvidia
After experiencing a significant increase in stock prices and impressive quarterly profits for over a year, it is likely that Nvidia ( NVDA -0.82% ) appears on the list. The company’s shares have increased by 132% since August last year. In the meantime, the quarterly operational earnings and free cash flow There has been a 112% and 62% increase in profits, leading to a growth in the company’s cash reserves.
Nvidia’s stock has dropped by 16% due to concerns about a recession leading to a tech sell-off in the past month. Despite this decline, the company’s steady earnings growth and strong position in the tech industry support a positive outlook for its stock. This situation presents a chance to invest in Nvidia at a lower price, reinforcing the argument for a bullish stance on the company.
Nvidia experienced a substantial increase in revenue of 262% compared to the same period last year in the first quarter of its fiscal 2025. Additionally, the operating income rose by 492%. The company’s strong performance was driven by notable expansion in its data center division, indicating a surge in artificial intelligence (AI) demand. sales of graphical processing units The total revenue for the quarter exceeded the expectations of Wall Street by over $1 billion.
Nvidia has consistently exceeded expectations with impressive financial performance over the past four quarters. The company is expected to release its second-quarter earnings report on August 28, and is likely to continue its upward trajectory following the positive results of its competitor in the chip industry. AMD In the previous month, AMD experienced significant growth in its data center segment, with a remarkable 115% increase in revenue compared to the same period last year. AMD now holds the second-highest market share in AI chips, following Nvidia.
AMD’s victory demonstrates AI Tech companies can still benefit greatly from Nvidia, which holds a dominant position in the industry with approximately 80% market share in AI GPUs. As a top player in the field, Nvidia is considered a lucrative stock choice that investors should consider purchasing at this time.
Nvidia’s the ratio of a company’s stock price to its earnings per share Currently standing at 62, the stock price is significantly lower than its five-year average of 80. Despite this, the company’s stock has seen a remarkable increase of over 2,000% compared to that average, positioning it as a strong contender in comparison to Nvidia’s potential.
2. Amazon
Amazon ( AMZN 0.39% ) Over the years, there has been a remarkable increase in the stock price of this company, almost reaching a 1,000% growth since 2014. This success can be attributed to its strong performance in the e-commerce sector. cloud computing refers to the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer. Amazon Web Services (AWS) has experienced a significant increase in its operating income and free cash flow, with a growth of 20,000% and 2,000%, respectively. This year, the company’s free cash flow surpassed $48 billion, leading to speculation among analysts that it may soon announce its inaugural dividend payout.
Due to its highly varied business structure, the retail powerhouse has emerged as a top choice for tech investments. Amazon’s continuous reinvestment efforts have enabled the company to broaden its sources of income and expand its influence by establishing strong footholds in areas such as e-commerce, artificial intelligence, grocery services, video streaming, digital marketing, and beyond.
In the second quarter of 2024, Amazon’s earnings demonstrated the success of its varied business portfolio. While revenue only saw a modest 10% year-over-year growth in its retail sector, the company’s total operating income surged over twofold to $14.6 billion, primarily driven by significant profits from AWS.
During the quarter, the company experienced significant growth in its digital ventures, with a 19% increase in AWS sales and a 20% rise in revenue from advertising services compared to the previous year. Amazon’s presence in the tech industry is rapidly growing, leading to a greater focus on this sector within its business operations. This expansion has allowed Amazon to tap into markets with lucrative profit margins. The company’s dominance in AI has been reinforced by the success of AWS. Additionally, its Prime Video streaming service serves as a valuable advertising platform and a key driver for future growth.
Similar to Nvidia, Amazon’s price-to-earnings ratio of 40 is significantly below its five-year average of 89. While the company has already created numerous millionaires in the past, it is expected to continue its success, making its stock an attractive choice for investors this year.
