3 Tech Stock Giants to Buy for Q2 2024

Stocks to buy

Unless you live under a rock, you would be aware of the tremendous growth the tech industry has shown over the past year. Driven by artificial intelligence (AI), the industry is hitting new highs and has become a hot sector today. It is driving the Nasdaq higher amid shows signs of an economic recovery. Considering the tech stock giants to buy for Q2 is a smart move. According to Foxconn, the AI server market will generate $150 billion in revenue by 2027 at a CAGR of 49%. 

However, not all tech stocks are equal, and you must pay attention to the balance sheet, cash flow and revenue growth. Some stocks simply soar higher due to the overall market sentiment but do not stay there long. Look for tech stocks that have the potential to report impressive quarterly numbers and could remain a hot property for the coming months. Here are the three tech stock giants benefiting from AI with a lot of upside from the current level. 

Nvidia (NVDA)

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One of the hottest tech stocks of 2023, Nvidia (NASDAQ:NVDA), has been on an unstoppable spree. The stock is up 84% year-to-date and 224% in the year. Trading at $889 today, it has shown some weakness over the past few days and this dip is worth buying.

The semiconductor company was once known for establishing a gold standard in the industry for its GPUs for the gaming sector. But in the last year, it has grabbed massive market share for its AI chips. Today, Nvidia controls over 80% of the market, and other companies are closer.

The company also enjoys pricing power and firms are ready to wait for weeks to get their hands on AI chips. Nvidia has steadily impressed investors with strong quarterly results and the fourth-quarter results showed a three times spike in revenue and a massive rise in the net income. Its data center business is one of the fastest growing sectors right now and saw a 400% year-over-year growth. 

The company recently revealed its Blackwell B200 GPU, the ‘world’s most powerful chip’ for AI. There is high anticipation around it, and the CEO mentioned that it could cost between $30,000 and $40,000. The company will offer steady growth, keep beating estimates and take the stock to $1,000 in the coming months. This tech stock is a strong buy for Q2. 

Super Micro Computer (SMCI)

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There is a lot of talk about which tech company will become the next Nvidia and I think Super Micro Computer (NASDAQ:SMCI) is the closest to it. While both businesses are connected and SMCI depends on Nvidia, it is soaring higher than Nvidia today. Exchanging hands for $1,015, the stock is up 255% YTD and 827% in the year. 

The company uses its motherboard designs and then integrates them with Nvidia’s processors. Its liquid-cooling GPUs are one of the industry’s best and are taking the company to new heights. Hence, whenever Nvidia’s business grows, Super Micro’s business also soars. 

It already has early access to the Nvidia chips and is heavily focusing on liquid cooling products. This is what sets the business apart from the rest. AI servers consume high power and need the right cooling servers that Super Micro provides. It is working on enhancing its production capacity, and the expansion moves will allow it to enjoy higher annual revenue.

The company saw its net sales double to hit $3.66 billion in the recent quarter, and its EPS was up by 62%, reaching $5.10 per share. It expects revenue growth from $14.3 billion to $14.7 billion for the full year. Yes, competition is coming up, but it will take time to reach where Super Micro is today, and this will allow the company to make the most of the AI hype. 

Oracle (ORCL)

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I have been watching Oracle (NYSE:ORCL) for a while now and the often-overlooked stock is a solid buy this quarter. It is expanding the cloud business and is building 100 data centers.

As one of the top database software companies, Oracle enjoys rich industry experience and is organically expanding the ecosystem with more software tools. It also launched the Oracle Cloud Infrastructure (OCI) platform, which offers cloud services enabling application building. 

Oracle has announced a partnership with Nvidia, where both firms will jointly market Oracle’s AI and cloud offerings and its chips and software. This is a big win for Oracle and considering the soaring popularity of Nvidia in the market, it will help increase Oracle’s orders and show strong revenue growth. It unveiled AI tools this month that allow consumers to see data-driven insights to help their businesses grow.

Fundamentally, Oracle is in a strong position, and its stock is up 21% YTD and 34% this year. Trading at $126 right now, the stock looks undervalued to me and is worth grabbing before it soars higher.

In the third quarter, the company saw a 7% surge in revenue, hitting $13.3 billion, and the cloud infrastructure revenue soared 49%, hitting $1.8 billion. The numbers prove that Oracle’s products are in demand and are ready to make bigger moves this year. Several analysts are bullish on the stock amidst growing cloud revenue. 

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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