Although these companies have a reputation for steady growth, they still have a lot to offer new investors.
The technology market is expanding rapidly. Nasdaq 100 Technology It’s up 32% in the past 12 months. S&P 500′During this period, stocks increased by 24%. This increase brings to mind the old saying, “The best time to plant a tree was 20 years ago, but the next best time is now.” The same sentiment applies to the stock market, especially tech stocks.
The technology industry is known for delivering huge profits in the long term due to its innovation and consistent demand for upgraded products and software. Meanwhile, recent advancements in markets such as Artificial Intelligence (AI), self-driving cars, and Virtual/Augmented Reality (VR/AR) indicate that the technology market is not nearing its ceiling. Hence, now is the perfect time to invest in technology.
Here are two fast-growing tech stocks to buy for 2024 and beyond.
1. NVIDIA
stock NVIDIA (NVDA 1.75%) The company has hit record highs over the past year, rising 207% along with surging revenue. This impressive growth has made it the first semiconductor manufacturer to reach a market capitalization of over $3 trillion, and it is the third-largest company by market capitalization this year. Microsoft and apple (AAPL -0.82%).
Nvidia’s success stems from the company’s dominance in AI graphics processing units (GPUs), the chips essential for performing AI tasks and running AI platforms. Intel and Advanced Micro Devices After prioritizing central processing units (CPUs) in recent years, Nvidia’s focus on GPUs has given it a head start in AI, putting it in a prime position to become the go-to chip supplier for AI developers around the world.
In its most recent quarter, Q1 fiscal 2025, Nvidia’s revenue grew 262% year over year, while its operating profit increased nearly 700%. The company saw impressive growth in its data center division, where revenue grew 427%, signaling healthy growth in AI GPU sales.
But the company’s diversified business model is the best reason to invest in this fast-growing tech stock: In addition to AI chips, Nvidia is also into consumer PCs, video games, and self-driving cars.
In the first quarter of 2025, the company’s automotive revenue grew 17% sequentially and 11% year over year. Nvidia CFO Colette Kress said the automotive division has huge potential as advances in self-driving cars drive chip demand. In a recent earnings call, Kress said she expects the automotive division to be the “largest enterprise vertical” within the data center division in 2024.
Nvidia has seen impressive growth this year, but it could have a lot more to offer investors as the technology market develops and the company remains a leading chipmaker. And with a price-to-earnings growth ratio of less than one, this fast-growing tech stock is an attractive buy to not miss this year.
2. Apple
Apple’s stock price has risen 341% over the past five years, while its annual revenue and operating profit have increased 47% and 79%, respectively, making the company one of the best growth stocks to buy for the long term.
But Apple has struggled over the past 12 months. The company has a reputation for consistently outperforming the S&P 500 Index. But while the well-known index is up 24% since last June, Apple’s stock price is up 16%. Investors have grown weary of Apple’s product business after repeated sales declines.
Meanwhile, the emergence of AI has highlighted the gap between Apple’s AI skills and some of its rivals. The iPhone giant isn’t currently leading the AI field, but recent developments and the Worldwide Developers Conference (WWDC) on June 10 have Wall Street feeling bullish again.
Apple shares rose 10% after WWDC, where the company unveiled new AI services that could boost product sales in the coming months. The tech giant unveiled Apple Intelligence, a new AI platform that will bring generation updates across its product lineup. iPhone 15 Pro models with M1 to M4 chips, Apple Silicon Macs, and iPads will give users access to Apple Intelligence, which includes features like image and language generation, editing tools, and an updated Siri.
Apple Intelligence could persuade millions of consumers to upgrade to the company’s latest devices, giving the company’s products business the boost it needs to overcome recent headwinds.
Apple shares trade at a premium, trading at 32 times forward earnings, but as the table shows, this is lower than AI rivals Microsoft and AmazonThis suggests that Apple’s stock is worth more than both companies.
Apple also outperforms both companies by a wide margin in free cash flow, which could mean it’s well-positioned to keep up with competitors in the AI space and continue to invest in its business. Combined with a history of solid growth, I believe Apple is a solid buy for 2024 and beyond.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a director of The Motley Fool. Dani Cook has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Advanced Micro Devices, Amazon, Apple, Microsoft, and NVIDIA. The Motley Fool recommends Intel and recommends the following: long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short August 2024 $35 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.