While Nvidia should continue to thrive, other technology companies are also poised to reap huge profits.
significant growth in Nvidia There's no doubt that last year surprised many investors. As ChatGPT redefines the benefits of artificial intelligence (AI), the lead designer of AI chips has catapulted to the forefront of investor portfolios, generating growth and profits rarely matched in the market.
Returns like this are rare, but Nvidia isn't the only success story. That means other tech stocks could also see once-in-a-generation growth as they head into recovery.
Asking a variety of investors can also increase your odds of finding such stocks, as three Motley Fool contributors suggest: Palantir technology (PLTR 2.13%), axon (Axon 1.00%)and sea limited (S.E. 3.46%) This could be an investment opportunity.
Palantir looks set to grow for years to come
Jake Larch (Palantir Technologies): What is this once-in-a-generation stock buying opportunity? The most important factor to me is the long-term growth story. And today, nothing fits this requirement better than the rise of artificial intelligence. So it's no surprise that my stock picks are AI stocks. Palantir Technologies.
Palantir specializes in AI-powered data analysis and pattern recognition. Palantir helps different organizations achieve disparate objectives through our software platform. On the other hand, it could help law enforcement track down and apprehend cybercriminals. On the other hand, it has the potential to help healthcare organizations deliver better outcomes for patients.
This means that almost every organization today can potentially benefit in some way from their products. Additionally, AI is only evolving. As we improve, so do the outcomes we deliver, making Palantir's products even more attractive to organizations looking to increase revenue, reduce costs, and improve customer satisfaction.
Best of all for potential investors, Palantir is still in the early stages of its lifecycle. The company started by partnering with government agencies such as law enforcement, national security agencies, and military branches. Recently, however, Palantir's commercial customer base has expanded.
For the most recent quarter (three months ending December 31, 2023), Palantir reported commercial revenue of $284 million, an increase of 32% year over year and 47% of overall sales. Occupied. US-based commercial revenues grew even faster, at 70% year over year.
In summary, American companies are flocking to Palantir. But the company still has plenty of room to grow, making it a great combination for investors.
Axon uses technology to benefit society
Justin Pope (Axon Enterprise): Years from now, investors may look back on Axon as a company from an under-the-radar generation. The company started with Tasers and has evolved into a full-fledged technology business offering cloud-based solutions for law enforcement.
In addition to non-lethal weapons, Axon sells body cameras and cloud-based software for evidence management and law enforcement operations. These products help protect law enforcement and the public and ensure accountability from all parties.
Axon's revenues have grown virtually uninterrupted over the years, benefiting from reliable government funding.
AXON Revenue (TTM) Data by YCharts
Axon currently has over 17,000 customers and boasts a 122% net revenue retention rate. This means that you have solid growth built into your business without having to acquire new customers.
The stock is already a big winner. The stock returned an impressive 54,000% over its lifetime. Axon may still be available. The business' annual revenue remains “only” $1.5 billion.
Management estimates that the addressable market is currently $63 billion, with clear opportunities for growth remaining over the next decade.
E-commerce conglomerate Sea Limited appears to be aiming for smoother waters.
Will Healy (Sea limited): Considering the success of Amazon and mercadolibre, e-commerce conglomerates have become a source of huge profits for investors. As these e-commerce companies moved into technology-based businesses, they leveraged their names and frequently visited websites into multiple revenue streams.
Fortunately, investors who missed out on these companies may have an opportunity with Sea Limited. Sea Limited started as gaming company Garena, but has since expanded into Shopee e-commerce and fintech division SeaMoney.
Sea operates in the often forgotten market of Southeast Asia. The region's core market constitutes an accessible market of more than 630 million people, nearly twice the population of the United States.
The stock is also down about 85% from its 2021 high.Garina's defeat free fire The stock price has fallen significantly due to the decline in the Indian market and Shopee's missteps in Europe and Latin America.
However, Shopee has refocused its focus on Southeast Asia, announcing in its Q4 2023 earnings call that it is investing heavily in logistics in its region to strengthen its competitive advantage. Garena is also addressing security concerns and appears to be close to regaining its license to operate in India.
A recovery in the gaming industry could be a game-changer for Sea Limited. In 2023 he increased his revenue to $13 billion by 5%. Nevertheless, during that time, Shopee's revenue increased by 24% and SeaMoney's increased by his 44%. Therefore, reversing Garena's 44% revenue decline could bring back significant growth on a company-wide basis.
In addition, Sea earned a net profit of $163 million in 2023, the company's first annual profit and a milestone that increases its attractiveness as an investment. Analysts expect Sea to further strengthen its growth, with profits expected to rise 116% this year and 159% in 2025.
If these predictions come true, these improvements could lead to a dramatic recovery in Sea Limited stock and put investors at the forefront of a huge and lucrative Southeast Asian market.
