Don’t Sleep on These 7 Tech Stocks That Will Mint Millionaires

Stocks to buy

Tech stocks have been top performers in the stock market. While FAANG stocks have stolen the spotlight for a decade, other tech stocks have also been reaping massive gains.

Nvidia (NASDAQ:NVDA) didn’t receive as much spotlight in the early 2010s. That stock only recently got thrust into the spotlight, and no one sleeps on that stock anymore. While Nvidia still carries a high valuation, the recent earnings report suggests an attractive forward P/E ratio is coming. 

Some investors look at stocks like Nvidia and FAANG for inspiration. However, other investors look for less-known tech stocks that can generate high returns in the future. Investors looking for extra exposure to tech stocks may want to consider these seven picks.

Palo Alto Networks (PANW)

Palo Alto Networks (PANW) logo on corporate building

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Palo Alto Networks (NASDAQ:PANW) is a cybersecurity company that raised skepticism for reporting earnings Friday evening. It’s unusual for the company to report earnings on a Friday evening; many investors saw that as bad news.

The company reported 26% year-over-year revenue growth and a 30% year-over-year growth in remaining performance obligations. Palo Alto Networks aims for 18%-19% year-over-year revenue growth in FY2024.

Due to its unusual release date, the company was a big sleeper heading into earnings. However, the stock has performed well over the past five years. Shares have gained 204% during that time frame and are up by 65% year-to-date.

Cybersecurity companies are promising due to the lucrative market of cyber hacking. Cyber hacking can cost companies $10.5 trillion per year by 2025. Cybersecurity tools like Palo Alto Network’s suite of products can minimize those costs and help businesses maintain online security.

MercadoLibre (MELI)

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MercadoLibre (NASDAQ:MELI) is an e-commerce and fintech company based in Argentina. Many investors compare the company to Shopify (NYSE:SHOP), but MercadoLibre has reported better financials than Shopify.

MercadoLibre reported a 113% year-over-year increase in profits and 31.5% year-over-year revenue growth. These growth rates have helped the company secure a 70 forward P/E ratio.

MercadoLibre already has e-commerce and fintech on its side, but the company can emerge as an ad giant in the future. The firm’s digital ads business grew by over 60% year-over-year. This business segment has high profit margins for the company and has a compelling runway.

MercadoLibre has been known as the Shopify of South America, but there is more to this investment opportunity. Some investors have noticed and helped prop this stock to a 233% gain over the past five years. Shares have gained 48% year-to-date.

Semrush (SEMR)

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Semrush (NYSE:SEMR) is a search engine marketing tool that helps marketers improve their SEO and SEM. SEO stands for search engine optimization and represents how businesses can improve their organic Google listing. SEM stands for search engine marketing and is a marketing path for businesses that want to optimize their online ads and paid search strategies.

Businesses will always want to rank on the first page for important keywords. The first page of Google’s search results is incredible digital real estate for any business.

Semrush makes it easier for companies to achieve their search engine goals, and the software is a monthly subscription. Semrush hasn’t rewarded long-term investors quite yet. Shares are down by almost 25% since an IPO in March 2021. However, shares have gained 9% year-to-date.

The big catalyst for Semrush comes from the company’s pursuit of profitability. Revenue has always been good, and the company recently reported 19% year-over-year revenue growth. This growth primarily comes from annual recurring revenue, which surpassed $300 million in the second quarter.

However, Semrush aims to achieve a non-GAAP net income of around $4 million in FY2023. That’s a recent guidance raise from the previous range of breakeven to $3 million in non-GAAP net income. Management expects revenue to reaccelerate in future quarters, and that can lead to higher profits in the future. If profits continue, Semrush shares stand to gain more value over time.

ServiceNow (NOW)

service now sign logo on a building

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ServiceNow (NYSE:NOW) is a cloud computing company that serves over 7,700 global enterprise customers. Many ServiceNow customers enjoy the company’s software, leading to a 99% renewal rate.

The company exceeded guidance on revenue and earnings in the second quarter. Q2 revenue reached $2.15 billion, representing a 23% year-over-year increase. Net income exceeds $1 billion in the quarter.

ServiceNow is positioned to benefit from the artificial intelligence boom. In the earnings report, management indicated generative AI solutions have resulted in significant productivity increases across the board. The firm’s partnership with Nvidia can make generative AI more accessible for enterprises.

ServiceNow is aiming for 25.5%-26% year-over-year revenue growth in the third quarter. Like many tech stocks on this list, ServiceNow has rewarded many long-term investors. Shares are up by 185% over the past five years and have gained 43% year-to-date.


Closeup of mobile phone screen with ASML logo on computer keyboard

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ASML (NASDAQ:ASML) is a semiconductor corporation that is the world’s only manufacturer of extreme ultraviolet systems. This company’s technology produces small and efficient chips.

ASML hasn’t enjoyed the same artificial intelligence-inspired growth as its peers. The stock is only up by roughly 18% year-to-date. However, shares have surged 216% over the past five years. ASML also has a reasonable valuation. The P/E ratio currently stands at 32 times.

ASML reported 27.1% year-over-year revenue growth in the second quarter and predicts to generate 30% year-over-year revenue growth for 2023 compared to 2022. Second-quarter sales came at the company’s high end of guidance, with gross margins at 51.3%.

Semiconductor stocks remain a hot pick as artificial intelligence chips pick up steam. ASML has been left in the dust relative to the gains of its peers, but it can be a compelling pick in the long run. The stock currently has a dividend yield approaching 1%.

Arista Networks (ANET)

Image of Arista Networks (ANET) logo on the side of a building

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Arista Networks (NYSE:ANET) provides large enterprises and data centers with cloud networking. Data centers are an important component of the artificial intelligence boom. As demand rises for AI chips and tools, Arista Networks stands to benefit.

The firm posted excellent revenue and earnings growth in the second quarter. Revenue jumped by 38.7% year-over-year, while GAAP net income jumped from $299.1 million to $491.9 million. That marks a 64.5% year-over-year improvement.

Arista Network’s customer portfolio consists of 75 million cumulative cloud networking ports. This backbone, combined with company initiatives, led to leadership projecting $1.45 billion to $1.5 billion in revenue for the third quarter. The mid-point, $1.475 million, would represent 25% year-over-year revenue growth.

Super Micro Computer (SMCI)

semiconductor stocks Close-up electronic circuit board. technology style concept. representing semiconductor stocks. top semiconductor stocks to buy now

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Super Micro Computer (NASDAQ:SMCI) is a leading provider of high-performance server and storage solutions for artificial intelligence tools. The company has been around for over 20 years, but the recent AI boom has significantly improved this company’s long-term prospects.

Investors have taken notice. Shares have gained 213% year-to-date and have rocketed by 1,180% over the past five years. Investors looking for Nvidia-like returns may benefit from a company that has a good partnership with Nvidia.

Unlike most tech companies that experienced big gains, SMCI has a P/E ratio of 23. The firm grew its Q3 net income from $141 million to $194 million, representing a 37.6% year-over-year growth rate. The company also achieved 37% year-over-year revenue growth.

While these numbers are impressive already, Nvidia’s explosive revenue and earnings growth numbers should excite many investors. Nvidia’s astonishing earnings report highlights the rapid growth of artificial intelligence. Super Micro Computer has a shot at reporting mind-boggling numbers in future quarters.

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

Marc Guberti is a finance freelance writer at 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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