3 Tech Stocks to Turn $250,000 Into $1 Million: February 2024

Stocks to buy

The tech sector has been filled with corporations that outperform the market or do most of the heavy lifting for index funds. These companies invest in innovative technology and optimize their existing digital infrastructures.

Investors have made fortunes in this industry, and there’s plenty of additional upside if you have a lengthy time horizon. It’s possible to quadruple your returns if you buy reliable, growing companies instead of taking big risks. These are some of the tech stocks to consider for outsized returns.

Nvidia (NVDA)

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Nvidia (NASDAQ:NVDA) is charging toward a $2 trillion market cap and is only behind Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) in valuation. Strong momentum for the equity combined with strong financial growth suggests that Nvidia can surpass both of them within a few years. 

The stock has become a fan favorite in part due to its 214% over the past year. Shares have gained an even more impressive 1,733% over the past five years. Artificial intelligence has been a key growth driver that helped the company achieve 206% year-over-year revenue growth in Q2 FY24.

Nvidia also experienced meaningful growth in its gaming and professional visualization segments. Even the company’s automotive segment experienced year-over-year revenue growth although it didn’t contribute much to the company’s blockbuster quarter. 

It’s nice to know that Nvidia has several business segments, and some of them are growing quickly. However, the main story for Nvidia is artificial intelligence. Investors don’t know when the AI boom will slow down, but as long as it stays strong, Nvidia stock should continue to surge.

Mastercard (MA)

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Credit and debit cards have become economic staples. Many people prefer to pay with one of these cards to get rewards for every dollar they spend. The rewards add up, and a plastic card leaves more room in your wallet. 

Mastercard (NYSE:MA) is a global technology company in the payments industry that has a large market share in credit and debit cards. Mastercard and Visa (NYSE:V) are deeply ingrained within the industry. Families that use one of the issuer’s cards will recommend that card to their children, enabling cards to go from generation to generation.

This multigenerational advantage also comes with growing financials and healthy profit margins. Mastercard reported 13% year-over-year revenue growth and 11% year-over-year net income growth in the fourth quarter of 2023. The fintech firm regularly posts net profit margins above 40%.

Mastercard initiates many buybacks to increase value for shareholders and distributes dividends each quarter. The firm spent $9.0 billion on stock repurchases and $534 million in dividends in 2023.

Alphabet (GOOG, GOOGL)

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Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) wins people’s attention and knows how to optimize ad placements. This dynamic combination results in many businesses rushing to get their ads listed for important keywords. Once businesses use Google Ads and see good results, they continue to use these ads which means steady cash flow for Alphabet.

That formula has worked for quite a while, including in the most recent quarter. Alphabet closed out 2023 with 13% year-over-year revenue growth and 51.5% year-over-year net income growth. 

While Alphabet makes most of its revenue from advertisements, the company also has a profitable Cloud segment. Google Cloud is one of the top choices to store data and keep it safe from hackers. 

Alphabet is also primed to capitalize on the artificial intelligence boom. The company is using the technology to improve its search engines and cloud platform. These innovations can help Alphabet retain its market share and strengthen its financials. 

On this date of publication, Marc Guberti held long positions in NVDA and GOOG. 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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