Eight months into 2023, and we’re finally seeing the technology sector booming!
The industry has surprised investors with the hype around Artificial Intelligence (AI). With inflation cooling and the economy improving, we are finally moving in the right direction. The industry suffered miserably in 2022, but with AI, several tech stocks have rallied.
If you’re looking for top tech stocks to buy now, let’s examine three stocks every growth investor should consider.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) holds a strong position in the tech industry. It is a part of the gaming industry, autonomous vehicles, and the artificial intelligence sector. While the company’s quarterly results failed to meet industry expectations, it did make some progress.
The revenue came in at $5.36 billion, an 18% drop year over year, and the EPS came in at $0.58, a 45% drop. AMD has seen a drop in PC demand which has led to a revenue decline. However, it recently unveiled MI300 which has placed it in direct competition with Nvidia chips. Consumers who aren’t willing to wait for weeks for Nvidia chips are going to opt for AMD’s chips.
The current demand for chips in the market will help AMD leverage its position and see a surge in revenue. Once MI300 debuts and the PC demand recovers, AMD will be performing better. Currently, the stock is trading at $102, up 60% year to date.
AMD has top-notch leadership and is holding a solid position to dominate the market. Microsoft Corporation (NASDAQ:MSFT) has already joined forces with AMD and is supporting it with financial and engineering resources. With the stock up 307% in the past five years, AMD is a solid buy.
Salesforce (CRM)
One of the top cloud-based companies, Salesforce (NYSE:CRM) has made a strong position for itself as the tech leader in the customer relationship management (CRM) space.
To strengthen its market position, the company has made acquisitions which include Tableau and Slack. It recently invested a significant amount in Hugging Face which offers a service that enables companies to store and use AI software.
Since the beginning of this month, the company has increased the list prices of several products by 9% for the first time in seven years. Salesforce is moving towards generative AI through its Einstein GPT interface, improving margins substantially. In the first quarter, the company saw an 11% rise in revenue to $8.25 billion and the EPS rose to $1.69, a 72% rise.
Raising the guidance, it expects an EPS in the range of $1.89 to $1.90 and a revenue ranging between $8.51 billion to $8.53 billion. Although CRM stock isn’t cheap, it is trading at $211 today, up 57% year to date. With lots of upside potential, the company has been making firm moves and is headed in the right direction.
We will continue to see a spike in cloud software demand, and Salesforce will benefit as a result. It’s huge opportunity for growth is due to its investments in AI which could take the stock even higher.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is considered an online seller of anything you can imagine with Amazon Web Services (AWS) generating steady profits.
In first half of 2023, the AWS sales saw a 14% rise and hit $43.5 billion. Despite a slowdown in growth rate, it still accounted for a majority of the sales and operating profits. AWS is the real winner of the company by contributing 70% to the total operating profits. Amazon uses their platform to steadily raise profits and generate higher cash flow.
For a long while, the company has been using AI for product recommendations and logistics. With its vast global network, it is seeing a rebound in sales growth, the profits are up, and cash flow is improving. Trading at $133 currently, the stock appears undervalued. However, it is up 55% year to date with steady growth since the beginning of 2023.
Buy and hold this stock to take home significant gains.
On the date of publication, Vandita Jadeja 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.