Even though inflation has , the allure of high-potential tech stocks persists.
In May, the Federal Open ÃÛÌÒ´«Ã½ Committee (FOMC) of the Federal Reserve Board from a record high of 5.25% to 5.5%. However, the markets are eagerly anticipating the June meeting.
Morgan Stanley (NYSE:MS) says and buyers may have too high of hopes for business results. Because of this, 2024 is expected to be a more even year with growth rates lower than 10 percent. J.P. Morgan (NYSE:JPM) expects in 2024 because when the pandemic ended, monetary policy became stricter and economic tailwinds stopped.
In this case, we’ll look at three tech companies with big prospects that have buy rates and double-digit upsides. The first is a strong rival in the artificial intelligence (AI) market thanks to its cutting-edge AI chipsets, which have helped it grow 20% this year. Another company is changing its financial plan to buy back a lot of its own shares and pay bonuses. Finally, a third company offers simple mobile apps and smart AI to take advantage of the growing game industry and better internet access in developing countries. Let’s delve in.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) is up 20% this year due to its AI chipsets. But analysts still rate it a strong buy, with a 15% upside potential.
As businesses search for Nvidia (NASDAQ:NVDA) substitutes, AMD is poised to seize a sizable portion of the market with . Nvidia controls the market for AI chips, . Yet, AMD is emerging as a worthy contender.
Meanwhile, AMD dominates high-performance computing. It , up 29% from last year. Many high-end supercomputers employ AMD Instinct MI300A APUs.
Moreover, is coming down the pike. Those include next-generation firewalls and network security, genome sequencing, molecular dynamics, and other computationally demanding applications.
AMD’s , up 2.2%. And its profitability was $123 million after losing $139 million in Q1 2023. The company’s $0.62 EPS exceeded $0.61. Non-GAAP operating income was $1.13 billion, 21% more than GAAP $36 million.
Advanced Micro Devices expects Q2 sales of $5.7 billion, plus or minus $300 million, up 6% year-over-year (YOY) and 4% sequentially.
In recognition of its innovation, AMD the IEEE 2024 Corporate Innovation Award for its chipset design leadership in high-performance and flexible computing, placing it well among high-potential tech stocks.
T-Mobile (TMUS)
T-Mobile’s (NASDAQ:TMUS) 1.59% dividend yield is below the industry average. Yet, it’s part of a substantial share repurchase and financial flexibility strategy.
The company for $3.6 billion in Q1 of 2024. As of March 31, the business repurchased 136.2 million shares for $19.8 billion. Also, it can use an additional $11.7 billion for buybacks. Meanwhile, the annual dividend is $2.60 per share, yielding about 1.59%.
T-Mobile predicts postpaid of 5.2 million to 5.6 million in 2024, up from 5.0 million to 5.5 million. And $31.4–$31.9 billion Core Adjusted EBITDA is expected.
Additionally, TMUS has to buy Ka’ena Corporation, which owns Mint and Ultra Mobile. The purchase would use T-Mobile’s size to improve these companies’ products and services while maintaining their business structures.
Ryan Reynolds will while Mint Mobile’s owners handle T-Mobile brands. This deal is projected to enhance T-Mobile’s Core Adjusted EBITDA and Free Cash Flow later this year.
On the product end, T-Mobile is its mid-band 5G network. The expansion moves 95% of T-Mobile’s 5G traffic to mid-band, assuring reliability and speed.
Opera (OPRA)
Opera (NASDAQ:OPRA) is one of the best high-potential tech stocks because it operates one of the preferred browsers for the gaming community, . Although it is difficult to get a firm estimate of the gaming segment, one projection indicates that in 2024, there will be . Opera is leveraging this growth.
In addition, Opera’s lightweight mobile browsers are popular in South Asia, Africa and Latin America with underpowered devices. The company should develop significantly as internet coverage rises in these locations. Unsurprisingly, thanks to significant growth potential, analysts rate the stock a strong buy, with a 64% upside.
Most importantly, Opera’s future growth rests on new product developments. To that end, Opera One, a redesigned desktop browser, 2024. This was due to its new architecture, AI and design. AI Feature Drops, a bi-weekly feature in Opera One, lets users test new AI capabilities.
Also, Opera signed an agreement with Google, with Google. This ensures the continued integration of Google’s search capabilities within its products.
In addition, OPRA revealed for 150 local Large Language Model (LLM) versions in its browser. So, this makes it the first major browser with local AI model access, and a quality pick among high-potential tech stocks.
On the date of publication, Faizan Farooque did not have (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.
