All for Joomla All for Webmasters
US Stocks

2 Smartest Tech Stocks to Buy in 2023 and Beyond

With 2023 almost over, it’s time to focus on stocks that could soar in 2024. The tech market is an excellent place to start, since innovative companies are often rewarded with significant and consistent gains over the long term.

Artificial intelligence (AI) has been the major topic in 2023, and that seems unlikely to change next year. So it’s not a bad idea to consider investing in companies that could profit the most from it in the coming months. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Advanced Micro Devices (NASDAQ: AMD) are two attractive options, with both companies preparing to launch new AI products next year.

These companies are top growth stocks, with shares that have delivered triple-digit gains over the last five years. There’s no telling how high their stocks could soar with AI as a catalyst. Here is why they are two of the smartest tech stocks to buy in 2023 and beyond.

Read More : 8 anti-wrinkle superfoods that help you stay young

1. Alphabet

As tech stocks go, it’s hard to go wrong with Alphabet. The company’s share price has climbed 159% since 2019, benefiting from stellar financial growth and the potency of its in-house brands. Its revenue has risen 95% in that period, with operating income up 160%.

The company has grown with the popularity of YouTube, its many Google services, and Android. These brands attract billions of users daily and have made Alphabet the biggest name in digital advertising, a market projected to hit $680 billion this year, according to Statista.

Like many tech firms, Alphabet has ramped up its expansion in AI in 2023. The company launched its own version of OpenAI’s ChatGPT in March, called Bard. The chatbot didn’t instill much confidence in investors by making mistakes and underperforming on its debut.

But the company has used the last year to develop Gemini, a large language model that it will release in 2024 with expectations that it will be highly competitive with similar programs on the market.

Gemini can potentially boost several areas of the business and prove a powerful asset when combined with the company’s popular services. Alphabet could offer more-efficient and pointed advertising through Google Search and YouTube, bring AI upgrades to its productivity and cloud platforms, and create a more-natural search experience that’s closer to ChatGPT.

Read More : Today’s horoscope: Free daily horoscope for Sunday, November 26, 2023

And the chart above shows Alphabet has by far the lowest price-to-earnings (P/E) ratio and price to free cash flow (P/FCF) out of the top three cloud/AI companies. The figures indicate that Alphabet is easily one of the biggest bargains in AI, making it a screaming buy this year and ahead of 2024.

2. Advanced Micro Devices

Investors in Advanced Micro Devices (AMD) have been some of the biggest winners this year after its shares have soared 88% since Jan. 1. Wall Street has rallied as its business has gradually recovered from last year’s economic downturn, and the company looks increasingly likely to make a big splash in AI in 2024.

As a leading chipmaker, AMD was hit hard by PC market declines in 2022. Revenue in its client segment tumbled alongside slowing demand for computers and chips.

However, this year’s third quarter suggests the worst is over. The client segment returned to profitability during the quarter and posted revenue growth of 42% year over year. Total revenue rose 4%, beating analysts’ expectations by $110 million.

In AI, the company is gearing up to release its most powerful graphics processing unit (GPU) ever, designed to take on market leader Nvidia. AMD will begin shipping the new AI chip, the MI300X, in 2024 and could see a significant spike in revenue in the coming months.

Read More : 6 Subtle Signs That Someone Is Wealthy

On Nov. 15, it was announced that Microsoft’s Azure will be the first cloud platform to use the MI300X, enabling new services and generative AI capabilities.

AMD has used the last year to vastly improve its AI technology, making promising start-up acquisitions such as and Mipsology. These companies will likely improve its AI software and help it provide developers with the tools to get the most out of its GPUs.

AMD shares have skyrocketed 532% over the last five years as chip demand has soared across the tech market. There’s no telling how much more they could rise over the next five years with the help of AI, making now a great time to consider a long-term investment in AMD.

Source :
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top