Technology will always offer us great investment opportunities because it is something that never stops.
We are always in constant development and growth. If you want to take advantage of the next technological boom, here are 7 tech stocks that will be part of the next tech revolution.
Applied Materials (AMAT)
Think of Applied Materials (NASDAQ:AMAT) as the behind-the-scenes wizards who create the materials, technologies and systems that help chip makers power our devices.
In its recent financial report, its revenue was down slightly, but remains at $6.43 billion. Its operating margin is stable at 28.0% (GAAP) and 28.3% (non-GAAP), which is a good sign.
Their earnings per share is also holding steady. This shows that they are weathering the challenges and staying profitable.
What really makes them shine is their role in heterogeneous integration. This is about combining different chiplets into advanced packages to make our devices smarter and more efficient.
Classic 2D scaling is becoming too slow and expensive, but AMAT’s innovations are the key to increasing chip performance, reducing power consumption and accelerating the launch of new technologies.
So, if you are thinking about your investment portfolio, AMAT is a smart choice. It’s at the forefront of the technology revolution, helping to build the future of electronics, even if its revenues have taken a small dip.
They are making our devices faster, smarter and more powerful.
Lam Research (LRCX)
Lam Research (NASDAQ:LRCX) is a company that excels in the creation of technology essential to the production of chips in electronic devices.
This company is a key player in the next wave of technology. As demand for more powerful chips continues to grow, they are at the epicenter of innovation.
In the second quarter of 2023, they posted impressive financial results, revenues of $3.21 billion and solid earnings. This shows that not only are they in the right place, but they are doing it very well.
In addition, their commitment to education and innovation shines through with their lead sponsorship of the 2023 FIRST Global Challenge is impressive. This is about more than technology. It’s about inspiring the next generation of scientists and creators.
The event focuses on renewable energy, a pressing issue in today’s world. They are in tune with technological and sustainable trends.
So, if you are looking for an investment that not only brings you profits but is also in tune with a greener, more technologically advanced world, this company deserves your attention.
Crowdstrike (CRWD)
CrowdStrike Holdings (NASDAQ:CRWD), is like the digital gatekeeper that protects businesses from online threats.
Imagine them as the protectors of your digital secrets and computer systems. Now, why is this an interesting investment in the technology revolution? Well, first, they are growing fast. In their last quarter, their revenue was up 37%, which is amazing.
Also, they are gaining the trust of many companies, as their annual recurring revenue grew by 37% and reached $2.93 billion in 2023. This means that many companies trust them for the long term.
Also, they are becoming more profitable, which shows that they know how to manage their money.
In short, they seem to be well prepared to grow in a market that always needs protection against cyber threats.
They are driving innovation and collaborating with other companies, which gives them a special touch in the tech world. Because of this, many investors are looking at CrowdStrike as an interesting option in the tech revolution.
Adobe (ADBE)
Adobe (NASDAQ:ADBE) is a technology company that is known for creating software used in a variety of creative and business applications. Many investors see Adobe as a promising bet in the current technology revolution.
In their Q3 2023 financial report, they demonstrated an impressive performance. They achieved revenue of $4.89 billion, up 10% year-over-year.
This shows that the company continues to grow and remain competitive. In addition, their profitability is solid, with earnings per share of $3.05 in book terms and $4.09 in adjusted terms.
Adobe’s business is divided into two key segments. The first, Digital Media, which includes products such as Adobe Creative Cloud and Document Cloud, generated $3.59 billion in revenue with double-digit growth.
The second, Digital Experience, which focuses on digital solutions, generated $1.23 billion in revenue, with solid growth in subscription revenue. This shows Adobe’s versatility in meeting the needs of its customers.
ServiceNow (NOW)
ServiceNow (NYSE:NOW) is like the right hand of business in the technology age.
Think of them as the digital artisans who create tools for businesses to work more efficiently. From managing information technology to delivering exceptional customer service, they do it all. That’s why they’re a promising choice for investing in the next technology revolution.
Their financials they shine. In the second quarter of 2023, they exceeded their own expectations. Their subscription revenues reached $2.075 billion, up an impressive 25% year-over-year. This shows that demand for their services continues to rise.
But that’s not all. ServiceNow is not content with the present; they are looking to the future. They have invited Teleperformance, a global leader in digital services, to join their AI Lighthouse program.
This program aims to drive the use of generative artificial intelligence in different industries to increase productivity and customer and employee satisfaction.
Silicon Motion (SIMO)
Silicon Motion Technology (NASADQ:SIMO), is a technology company that excels in the design and manufacture of semiconductor components used in data storage devices, such as flash memory and SSD controllers.
Their role in improving the speed and efficiency of our devices makes them an attractive investment in this era of technological revolution.
As for their financials, in the second quarter of 2023, they reported solid results. Its sales increased significantly, reaching $140.4 million compared to $124.1 million in the previous quarter.
In addition, its net earnings also increased from $10.2 million to $11.0 million under GAAP. Even under non-GAAP, the outlook is positive, with earnings of $12.6 million in the second quarter.
However, one noteworthy piece of news is the termination of the merger agreement with MaxLinear, Inc. (NASDAQ:MXL) because of alleged violations by MaxLinear.
Silicon Motion is taking legal action and seeking substantial damages as a result of these alleged violations.
Sanmina (SANM)
Sanmina (NASDAQ:SANM) is a technology company that dazzles today. It specializes in manufacturing and integrated solutions for a variety of industries, and is in a strong position to lead the next technology revolution.
What makes it attractive is its customer diversification and management efficiency, with impressive operating margins.
In fiscal Q3 2023, they reported revenues of $2.21 billion, along with a healthy operating margin on both GAAP and non-GAAP basis.
Also, they generated cash flow of $57 million and have $657 million in cash on hand. In addition, they demonstrate confidence in their own value by repurchasing nearly one million shares for about $51 million.
Crucially, they have a high non-GAAP Return on Invested Capital, which stands at an impressive 29.7%. This reflects that they are effectively leveraging their capital.
As of this writing, Gabriel Osorio-Mazzilli 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.
Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.