3 Millionaire Maker Technology Stocks to Watch

If your ultimate investment goal is to become a millionaire, there is one sector you will want to focus on within your portfolio. It's technology.

Stocks in the tech sector have a long history of outperforming the broader market. That's because technology companies tend to introduce the world's most innovative products and services. Think cell phones, high-speed internet, and augmented reality.

With this as a backdrop, we take a closer look at three great technology stocks with a lot of upside ahead. Each of these names is not only a leader in their field, but also offers products and services that everyone needs.

1. Qualcomm

When most investors think of chip companies, Nvidia and intel It's probably the first thing that comes to mind. And rightfully so. Nvidia's technology is at the heart of most chip-related products and services. Meanwhile, Intel processors are still powering most of the world's traditional computers.

But these aren't the only chipmakers that suddenly find it hard to live without. Qualcomm (QCOM -2.93%) is among them, and is probably more important to you than Intel or Nvidia.

Qualcomm develops or owns the technology that powers nearly every cell phone on the market. One of its core products is its powerful Snapdragon processor, which gives handheld devices nearly as much computing power as laptops and desktops, but at a fraction of the size. However, it's not just the smartphone's CPU (central processing unit). Qualcomm products are used in 5G and Wi-Fi antennas, in audio equipment, in smart cars, and even in security cameras, just to name a few. None of them are super famous. But what Qualcomm lacks in the “wow” factor, it more than makes up for in the breadth and depth of its product portfolio. The world isn't going to stop using technology anytime soon. Can not do that.

The company is also positioning itself for what could be a huge opportunity. This is the next chapter in the ongoing emergence of artificial intelligence (AI).

Until now, most AI work has been done in data centers far away from computers, phones, and even enterprise-level customer facilities. But that is changing. This critical data management task can increasingly be performed on devices close to the user. Qualcomm is leading the way. CEO Cristiano Amon explained at the recent annual general meeting: [generative] Bringing AI capabilities to smartphone users around the world. Our leadership in premium and high-tier Android devices continues with our latest Snapdragon mobile platform with significantly enhanced AI processing performance. ”

I'm still not sure what this means exactly. Many people are still exploring practical applications for this technology. But Qualcomm is ready for whatever the future holds.

2. Palantir Technologies

While some businesses, and many people, may not see much of a need for AI solutions yet, don't jump to the same conclusion. In many cases, companies only need to demonstrate how AI can positively impact the bottom line of their business.

input Palantir Technologies (PLTR -1.59%).

At its simplest, Palantir turns artificial intelligence into a valuable and practical tool. For example, the company's platform helps biopharmaceutical companies better design and manage clinical trials, enables energy companies to optimize their operating assets, and even helps retailers anticipate specific inventory needs. .

However, perhaps the most important thing about Palantir Technologies is its ability to serve government agencies, especially the military. The company's Gotham software, for example, allows soldiers on the front lines to act more effectively by providing them with better information about the enemy. Just this week, the company announced it had been awarded a $178 million contract from the U.S. Army Contracting Command to provide a total of 10 TITAN (Tactical Information Target Access Nodes) ground station systems. The TITAN system provides practical targeting information for long-range precision shooting.

This is just a small portion of what's on the card. The analyst community expects revenue growth of nearly 22% this year as more potential customers better understand what Palantir can do and become paying customers as a result. Revenue is expected to grow another 19% next year. And beyond that point, there is reason to remain optimistic. According to Precedence Research, the AI ​​software market alone is expected to grow at an average annual rate of 23% through 2032.

3.Microsoft

Finally, add the software giant microsoft (MSFT -0.71%) Add it to your list of potential millionaire maker stocks.

Indeed, there's no denying that Microsoft's massive size makes it difficult for the company to record significant growth rates right now. Most of next year's 14% sales growth forecast reflects a reacceleration from this year's relatively modest sales growth, which was expected to be just 6%. Anything above 10% is actually pretty good here.

Where Microsoft really shines is in its bottom line. This business is expanding very well and with expanding profit margins, even if there are some fluctuations.

MSFT Revenue (TTM) Data by YCharts

Evaluate the nature of their business. Once the software code is written, its core costs are incurred. Most of the software sales end up being gross profit. The business model itself also works in its favor. Much of Microsoft's software is now rented rather than purchased, generating reliable recurring revenue.

But above all, Microsoft is good at a few things that make it easier to enter its digital ecosystem. For example, the company's Windows operating system is installed on more than two-thirds of computers worldwide, while the company's Office productivity apps work seamlessly with Windows, according to GlobalStats. His Bing search engine has also become more than just a search engine. This will be a full-fledged AI assistant, incorporating ChatGPT's technology into his platform called Copilot to drive profitable traffic to your site. The company's cloud computing division is now growing faster than before. Amazon The main reason for web services is that their interface provides all the tools that business customers need and is also easy to use.

Is it the fastest growing tech stock you can buy? But the company is one of the most stable technology companies, and there will never be a time when the world doesn't need what Microsoft has to offer.