Often referred to as blue-chip stocks these corporations have never been stronger – despite high interest rates established by the Federal Reserve. This has led to a handful of outstanding stocks that have kept analysts buzzing about growth prospects and trajectory. As such, here are three blue-chip stocks with strong buy ratings to consider for portfolio stability.
Nvidia (NVDA)
After announcing a 10-to-1 stock split during a Q1 earnings report, Nvidia (NASDAQ:NVDA) has never looked stronger. For NVDA, its mastery of graphics processing unit (GPU) design has paid off in ways few could predict. Early on the GPU seemed like just an add-on to high-end computers for gaming and graphic design. While cloud computing grew alongside the gaming industry, few foresaw the application of GPUs to data center computing structures.
Now with the voracious computing appetites of businesses around the world, whether AI-centered or otherwise, data center GPU demand is through the roof. This has led to some stunning gains for the company that potentially dominates over 98% of the data center GPU market, NVDA. A stock split and another quarter of rising revenue makes Nvidia stand tall among blue-chip stocks with strong buy ratings.
Microsoft (MSFT)
When investors discuss which blue-chip stocks to buy, Microsoft (NASDAQ:MSFT) tends to be at the forefront of the conversation. Up roughly 14% from the start of the year, Microsoft continues to command its blue-chip status with confidence. A big part of that is Microsoft’s adaptability as a company, constantly shifting to stay relevant in the tech sector.
If you asked analysts what Microsoft’s main revenue source was 20 years ago, most would say software sales followed by hardware. Today, Microsoft’s highest-earning business segment is what it calls “Intelligent Cloud.”
This constant focus on the future has made the company exceptionally robust and well-diversified. Thus, investors can avoid many of the common pitfalls of investing in large corporations by buying Microsoft stock, as it always manages to get a big slice of the pie in one sector or another. Should this market trend continue, MSFT stock will likely still be one of the main drivers of its value.
Disney (DIS)
Through decades of careful brand management and competitor acquisition, Disney (NYSE:DIS) has found itself at the top of the family entertainment experience. From media to amusement parks, almost every iconic franchise of the last 60 years belongs to Disney. Childhood favorites like Marvel, Star Wars, Pixar and even National Geographic make up the company’s wide portfolio of revenue drivers.
Yet, it seems to have carefully taken a step back from them. That’s because many lifelong fans of the aforementioned franchise found themselves burnt out on Disney’s repetitive renditions of what were once stunning and unique universes. As a result, there have not been any new Star Wars movies in five years with only one Marvel movie slated for 2024.
While this may seem like a retreat in the short term, the executives at Disney are likely seeing the downtrend in customer enthusiasm as a sign to refocus efforts on quality over quantity. Winning back hearts over the next decade will justify its place alongside blue-chip stocks with strong buy ratings.
On the date of publication, Viktor Zarev did not have (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.
Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.