From Nasdaq: 2024-04-05 07:30:00

The tech industry, led by the Nasdaq-100 Technology Sector index, has shown superior gains over the past decade, reflecting the long-term value of investing in tech stocks. Warren Buffett’s Berkshire Hathaway allocated almost half of its portfolio to tech, with a 20% compound annual gain and a portfolio worth $371 billion.

Nvidia (NASDAQ: NVDA) emerges as a standout hypergrowth tech stock in 2024, dominating the AI chip market and posting record earnings. Revenue surged by 265% to $22 billion in Q4 2024, driven by a 409% increase in data center revenue. With strong free cash flow and low valuation ratios, Nvidia’s potential for growth is undeniable.

Microsoft (NASDAQ: MSFT) is a reliable tech investment, increasing dividend payouts for 19 consecutive years. Annual revenue has grown 144% in the last decade, with free cash flow soaring to over $67 billion in 2023. Microsoft’s leading positions in cloud computing and AI make it a solid choice for long-term growth.

Microsoft’s sturdy financials and market cap exceeding $3 trillion position it as a top tech investment. With earnings potentially reaching $15 per share by 2026, the stock is projected to rise by 33%, outperforming the S&P 500. Coupled with its strong presence in tech, Microsoft presents a compelling buying opportunity now.



Read more at Nasdaq: 2 Hypergrowth Tech Stocks to Buy in 2024 and Beyond