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The high-tech industry is filled with innovative companies that outperform the market and generate long-term returns for investors. Some tech stocks in this industry have been winners for generations, creating billionaires.
Becoming a millionaire in the stock market largely depends on how much capital you put into your portfolio. It's possible to turn $100,000 into $1 million, but it's even easier to turn $500,000 into $1 million. The amount of capital you put into your portfolio over several years is just one piece of the puzzle. You should also choose promising investment opportunities that can provide long-term benefits. These are some of the top tech stocks to consider.
Microsoft (MSFT)
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Despite being the most valuable publicly traded company with decades of impressive profits; microsoft (NASDAQ:MSFT) There is still room to run. The company maintains a commanding lead in the artificial intelligence industry thanks to Copilot. Microsoft's ability to apply AI at scale will also help the company gain market share in new industries.
The technology giant's efforts have resulted in meaningful financial growth. Revenue for the second quarter of fiscal 2024 increased 18% year-over-year and net income increased 33% year-over-year. Microsoft Cloud was a major growth driver, generating $33.7 billion of the company's $62 billion in revenue. The cloud segment grew 24% year over year.
Microsoft is already generating attractive profits. The stock is up 53% in the past year and 264% in the past five years. The company has enough catalysts and exposure to multiple industries to support stock price gains.
ServiceNow (now)
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ServiceNow (New York Stock Exchange:now) is a smaller cloud computing company than Microsoft, but still boasts an impressive market capitalization of $158 billion. The company is on its way to becoming a mega-cap stock, and has the financial strength to achieve that milestone.
The stock is up 79% in the past year and 214% in the past five years. The company partners with more than 8,100 of his companies, and there are significant growth opportunities in the federal business sector.
The company has regularly posted strong revenue growth, and did so in 2022 amid rising interest rates and high inflation. ServiceNow continued its momentum by exceeding guidance on fourth-quarter 2023 revenue and profitability metrics. The company reported 26% year-over-year revenue growth, with net income nearly doubling compared to the same period last year.
ServiceNow helps businesses increase productivity and create better workflows. A 99% update rate indicates that many clients rely on the Now Platform. This dependency gives ServiceNow ample opportunity to increase its prices over time. Many customers upgrade their plans even if ServiceNow doesn't raise prices. For example, the number of clients with annual commitments of more than $1 million increased by 33% year over year.
Arista Networks (ANET)
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Arista Networks (New York Stock Exchange:ANET) is a client-to-cloud networking company that provides the foundation for cloud computing and artificial intelligence. The company's switches and routers are essential to achieving scale and efficiency.
The company has many large customers including Microsoft and other cloud providers. Arista Networks offers investors attractive returns. Net profit margin for the fourth quarter of 2023 reached 39.8%. Revenue reached $1.54 billion, an increase of 20.8% year over year. Fourth-quarter net income increased 43.7% year-over-year to $613.6 million.
Analysts note the company's strong financial growth and long-term opportunities.This stock has recently received an upgrade from goldman sachs (New York Stock Exchange:G.S.) $313 to $356 per share. This new price target could provide 16.3% upside potential. The stock enjoys significant upside potential and comfortably outperforms the market. The stock is up 81% over the past year and 290% over the past five years. The company's stock currently trades at a P/E ratio of 47 times.
On the date of publication, Marc Guberti held long positions in MSFT, NOW, and ANET. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
