7 Millionaire-Maker Tech Stocks to Buy in February 2024

Stocks to buy

Tech stocks have helped some investors become millionaires over the years. However, very few of these stocks generated those returns quickly. Investors can realize the most gains by holding onto reliable companies for several years. Patience rewards savvy investors and it can reward you too.

These stocks have already exhibited great runs but still have long-term upside. Accumulating shares in these companies can prove to benefit in the long run. These are some of the millionaire-maker tech stocks to consider.

Microsoft (MSFT)

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Microsoft (NASDAQ:MSFT) gives investors exposure to multiple high-growth verticals. Artificial intelligence has pushed many stocks higher, but few companies are as well positioned as Microsoft to capitalize on the boom.

The company’s partnership with OpenAI and the introduction of Copilot have helped turn the company into an AI leader for consumers and businesses. Microsoft is also using artificial intelligence to ramp up Microsoft Azure. These enhancements will increase retention and lead to customers spending more money on the cloud platform.

Artificial intelligence and cloud revenue helped the company achieve 18% year-over-year revenue growth in the second quarter of fiscal 2024. The company is still growing at a good pace even though it recently exceeded a $3 trillion market cap. 

Microsoft’s video game and advertising segments are also doing well for the company. The Activision Blizzard acquisition further establishes Microsoft as a top player in the industry. Revenue growth was impressive, but net income was even better, coming in 33% higher than the same period last year.

Visa (V)

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Credit and debit card usage remains steady and continues to grow. As more people initiate more transactions with these cards, the fintech corporations creating these cards make more money. Rewards programs incentivize people to use these cards more often which creates a win-win for the industry.

Visa (NYSE:V) is the leader in the industry. The company has a $557 billion market cap and trades at a 32 P/E ratio. A strong start to fiscal 2024 demonstrates promise for a company with a long reputation of rewarding long-term investors. Revenue increased by 9% year-over-year while GAAP net income jumped by 17% year-over-year during the quarter. 

Analysts are feeling bullish about Visa and it has 23 buy ratings and one hold rating. The average price target implies a 9.4% upside. The highest price target of $326 suggests the stock can rally by an additional 17.5% from current levels. So far, shares are up by 7% year-to-date.

Supermicro (SMCI)

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Supermicro (NASDAQ:SMCI) has trounced the stock market with a 754% gain over the past year. Despite this big leap, the equity still trades at a 38-forward P/E ratio. Investors have been rushing to grab shares of the tech company which is often portrayed as the next Nvidia (NASDAQ:NVDA).

The moniker has merits. Supermicro followed Nvidia’s script by doubling revenue growth year-over-year in Q2 FY24 and projecting revenue to triple year-over-year at the midpoint of Q3 FY24 guidance. Corporations are rushing to use artificial intelligence to enhance their offerings, and Supermicro produces critical hardware that prevents AI chips from overheating.

Supermicro has a distinct lead over its competitors and is rapidly increasing its market share. 

Supermicro’s ascent has attracted a lot of attention, and a healthy correction can present a long-term buying opportunity. One thing to note is that the equity isn’t a member of the S&P 500, but that will likely change later this year. The tech company has already fulfilled the requirements for entry into the index. Getting added to the index will elevate the stock’s price and reward investors.

Alphabet (GOOG,GOOGL)

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Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has turned many investors into millionaires. Dominant positions in advertising and cloud computing helped the corporation earn more than $300 billion in revenue in 2023

Revenue growth for the entire year reached 9% year-over-year while the growth rate was 13% year-over-year in Q4 2023. Alphabet has solid profit margins and has generated meaningful gains for current investors. Shares are up by 54% over the past year and have gained 155% over the past five years. 

The company is using artificial intelligence to improve its core products which should increase retention and revenue. Profits should also continue to rise as the company implements cost-cutting measures. Despite high returns, Alphabet only trades at a 26 P/E ratio. That’s lower than the other Magnificent Seven stocks and presents a healthy combination of value and growth. Alphabet is an enticing “growth at a reasonable price” stock for long-term investors. 

Amazon (AMZN)

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Amazon (NASDAQ:AMZN) is another vibrant member of the Magnificent Seven that has a history of outperforming the market. Shares are up by 77% over the past year and have gained 105% over the past five years.

Amazon has exposure to several high-growth verticals like e-commerce, cloud computing, gaming, artificial intelligence, and advertising. Those industries have been picking up momentum and helped the corporation notch a 14% year-over-year increase in total revenue. This figure came from the Q4 2023 earnings report and is an acceleration compared to the company’s 12% net sales increase for the entirety of 2023. 

CEO Andy Jassy expressed optimism about Amazon’s generative AI capabilities in the press release. He also mentioned the advertising segment as a key growth driver for the company.

While Amazon is growing in multiple industries, it can also achieve better profit margins for its shipping business in the future. Amazon is experimenting with Prime Air drone deliveries which are set to expand to Italy, the United Kingdom, and an unspecified location in the United States in late 2024. Amazon believes these drones can provide faster product deliveries for its customers and improve margins. While this concept remains to be seen, long-term investors may see the fruits of this project within a decade. 

ServiceNow (NOW)

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ServiceNow (NYSE:NOW) is a high-growth cloud computing company that helps businesses establish workflows, boost productivity, and stay safe from cyberattacks. The asset has consistently outperformed the market with a 72% gain over the past year and a 216% jump over the past five years.

The software has an exceptional 99% renewal rate which indicates most customers are happy with the resource. Furthermore, the company reported a healthy 26% revenue growth rate in Q4 2023

Most of the growth was fueled by reliable subscription payments. Customers are spending more money to access more features. While overall revenue for Q4 2023 increased by 26% year-over-year, the company saw a 33% growth rate in the number of customers with annual contract values exceeding $1 million. 

CEO Bill McDermott cited generative AI as a contributing factor to current growth rates. He also expects the new technology to play a critical role in the upcoming quarters.

Consistent revenue from current customers, high retention rates, and an ability to reach new customers position ServiceNow to generate meaningful long-term returns for its investors.

Crowdstrike (CRWD)

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Cyber attacks are on the rise. The industry is lucrative for hackers and can decimate small businesses. Even large corporations can lose millions of dollars and damage public trust if they get hacked.

The risk of getting involved in a cyberattack is too great for many companies to ignore. Business owners seeking shelter from hackers often turn to Crowdstrike (NASDAQ:CRWD). Crowdstrike’s Falcon Platform helps companies implement safety protocols and detect cyberattacks before they become widespread. The firm is using artificial intelligence to improve its core platform.

Crowdstrike stock has been a leading equity for many investors. The asset is up by 187% over the past year and has gained 402% over the past five years. Crowdstrike’s impressive financials from Q3 FY24 suggest that the rally can continue. Annual recurring revenue surpassed $3 billion and grew by 35% year-over-year. 

With that growth rate, it won’t be long before the firm reaches $4 billion in annual recurring revenue. Crowdstrike benefits from a growing customer base and more businesses that are willing to pay higher prices for its cybersecurity solutions. The firm looks like a captivating long-term tech stock.

On this date of publication, Marc Guberti held long positions in MSFT, SMCI, GOOG, and NOW. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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