In the fast-paced world of technology, there are promising stocks with substantial growth potential. From artificial intelligence (AI) to clean energy, tech offers various opportunities. In a vast sea of stocks, only a handful consistently outperform, making them attractive for long-term investors. However, not all growth stocks are equal.
Here are three millionaire-maker undervalued tech stocks with explosive growth potential for investors to consider.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) advertising business, once a cash cow, faced a setback in 2022 with declining revenue and profits, causing a stock dip. In response, Meta initiated layoffs and refocused on its core ad business, showing early signs of recovery.
Meta’s Q1 2023 showed a 3% revenue growth turnaround from a negative 4% in Q4 2022. In Q2 2023, advertising revenue grew by 11%, with net income up 16%. Daily user engagement also improved, hinting at Meta’s recovery and future growth potential, including increased monetization in regions like Asia-Pacific.
Meta is heavily investing in its Reality Labs division, focused on the metaverse, despite incurring a $3.7 billion operating loss in the second quarter. This investment aligns with the potential of the metaverse, which could reshape various aspects of life, offering a potential $1 trillion industry.
Apple (AAPL)
Apple (NASDAQ:AAPL) is a top retirement stock. It boasts brand loyalty, a strong market position and a 39% year-to-date stock increase. With robust free cash flow and a growing services segment, it’s a resilient choice for retirement portfolios.
Services revenue surged 8%, reaching $21.2 billion. With Q3 earnings per share at $1.26 and a $24 billion return to shareholders, Apple’s financial strength is evident. Institutional investors acquired 229 million shares.
Investors remain confident in Apple due to its consistent growth, high margins and loyal customer base. In fact, Warren Buffett is a strong supporter of Apple, as noted by his long-term ownership in the world’s largest company. While Apple’s recent product reveal did leave some investors wanting (given the stock’s 2% decline immediately thereafter), Apple has shown its ability to innovate its way to growth in the past.
Apple faces some pressure as its second-quarter results showed declining sales across all devices, but AAPL stock rose substantially this year and over 200% over the last five years. People value their iPhones and Apple services, making the stock a blue-chip investment to hold.
Baidu (BIDU)
Baidu (NASDAQ:BIDU), a major player in China’s tech landscape, leads in search engines, AI and quantum computing, offering its quantum software — Qian Shi. It delivers Quantum as a Service with access to its 10-qubit quantum computer, enabling diverse applications, including lithium battery research and medical image analysis. Baidu’s Liang Xi platform expands quantum services through private, cloud and hardware channels, fostering compatibility with third-party quantum computers.
Baidu boosts its services with ERNIE and ERNIE Bot, enhancing Baidu Search for better user satisfaction. Innovations, like AI assistants and generative AI marketing, aim to retain users and improve ad effectiveness, driving revenue growth. Investing in BIDU has merits beyond AI. Baidu is China’s Google, dominating searches with a 76% market share.
Indeed, for investors looking for Google-like stability and profitability with the growth engine of AI and the backdrop of more than a billion consumers, BIDU stock is the place to be right now.
On the date of publication, Chris MacDonald has a long position in META, AAPL and BIDU. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.