2 Hypergrowth Tech Stocks to Buy in 2024 and Beyond
Tuesday, Nov 19, 2024 3:41 pm ET
3min read As the tech industry continues to boom, investors are on the lookout for hypergrowth stocks that can deliver significant returns in the long run. Two companies that stand out in this regard are Nvidia (NVDA) and Apple (AAPL). Both companies have demonstrated impressive growth in recent years and are well-positioned to capitalize on emerging trends in the tech market.
Nvidia, a leading producer of graphics processing units (GPUs), has seen its revenue and adjusted earnings per share (EPS) soar in recent years. In fiscal 2024, Nvidia's revenue and adjusted EPS increased by 126% and 288%, respectively. Analysts expect the company's revenue and earnings to grow at a compound annual growth rate (CAGR) of 50% and 56%, respectively, from 2024 to 2027. Nvidia's dominance in AI graphics processing units (GPUs) and its diverse business model, spanning consumer PCs, video games, self-driving cars, and more, further solidify its market position.
Apple, on the other hand, has a reputation for consistent growth and a strong ecosystem. The company's stock price has increased by 341% over the past five years, with its revenue and operating income soaring 47% and 79%, respectively. Apple's recent unveiling of Apple Intelligence, a new AI platform, could motivate millions of consumers to upgrade to its devices, boosting its product business. The company's expansion into AI services positions it well to capitalize on the AI boom, making it an attractive long-term investment.
Both Nvidia and Apple trade at reasonable valuations, given their expected growth rates. Nvidia's forward P/E ratio of 38 is reasonable, considering its 50% CAGR in revenue and 56% CAGR in earnings expected from 2024 to 2027. Apple, at a premium with a forward P/E of 27, offers growth potential with its AI advancements and a 341% increase in stock price over the past five years.
While these companies face potential risks and challenges, such as competition and regulatory pressures, their strong competitive advantages and growth prospects make them attractive investments for long-term growth. Nvidia's dominance in AI GPUs and Apple's strong ecosystem and AI expansion position them well to capitalize on emerging trends in the tech market.
In conclusion, Nvidia and Apple are two hypergrowth tech stocks that investors should consider for 2024 and beyond. Both companies have demonstrated impressive growth in recent years and are well-positioned to capitalize on emerging trends in the tech market. Their reasonable valuations and strong competitive advantages make them attractive investments for long-term growth.
Nvidia, a leading producer of graphics processing units (GPUs), has seen its revenue and adjusted earnings per share (EPS) soar in recent years. In fiscal 2024, Nvidia's revenue and adjusted EPS increased by 126% and 288%, respectively. Analysts expect the company's revenue and earnings to grow at a compound annual growth rate (CAGR) of 50% and 56%, respectively, from 2024 to 2027. Nvidia's dominance in AI graphics processing units (GPUs) and its diverse business model, spanning consumer PCs, video games, self-driving cars, and more, further solidify its market position.
Apple, on the other hand, has a reputation for consistent growth and a strong ecosystem. The company's stock price has increased by 341% over the past five years, with its revenue and operating income soaring 47% and 79%, respectively. Apple's recent unveiling of Apple Intelligence, a new AI platform, could motivate millions of consumers to upgrade to its devices, boosting its product business. The company's expansion into AI services positions it well to capitalize on the AI boom, making it an attractive long-term investment.
Both Nvidia and Apple trade at reasonable valuations, given their expected growth rates. Nvidia's forward P/E ratio of 38 is reasonable, considering its 50% CAGR in revenue and 56% CAGR in earnings expected from 2024 to 2027. Apple, at a premium with a forward P/E of 27, offers growth potential with its AI advancements and a 341% increase in stock price over the past five years.
While these companies face potential risks and challenges, such as competition and regulatory pressures, their strong competitive advantages and growth prospects make them attractive investments for long-term growth. Nvidia's dominance in AI GPUs and Apple's strong ecosystem and AI expansion position them well to capitalize on emerging trends in the tech market.
In conclusion, Nvidia and Apple are two hypergrowth tech stocks that investors should consider for 2024 and beyond. Both companies have demonstrated impressive growth in recent years and are well-positioned to capitalize on emerging trends in the tech market. Their reasonable valuations and strong competitive advantages make them attractive investments for long-term growth.
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