The technology industry has built a reputation for consistent and significant long-term growth. So it’s no surprise that four of the five most valuable companies in the world are involved in the technology sector Microsoft (NASDAQ: MSFT), Apple, Nvidia (NASDAQ: NVDA)And Alphabet.
The success of these companies is evident from the Technology sector Nasdaq-100‘s increase of 419% over the past decade, significantly better than the S&P500‘s growth of 179% over the same period.
The tech industry has made many millionaires over the years and is probably not done yet. Fast-growing markets such as artificial intelligence (AI), autonomous vehicles, virtual reality, cloud computing and more have enormous potential in the coming years. Many are far from reaching their ceiling and could have a lot to offer new investors in the long term.
Here are two millionaire tech stocks to watch.
1. Nvidia
Whether you trade professionally or approach the stock market in a more casual manner, you’re probably aware of Nvidia’s meteoric rise over the past year. Since last May, the company’s share price has risen 173%, alongside rising profits.
Nvidia posted its results for the first quarter of fiscal 2025 (ending April 2024) on May 22, blowing Wall Street estimates out of the water once again. During the quarter, the chipmaker’s revenue rose 262% year over year, exceeding expectations by more than $1 billion. Non-GAAP (adjusted) earnings per share were $6.12, $0.54 ahead of analyst expectations.
In the first quarter of 2025, Nvidia continued to benefit from its dominant role in AI. The data center segment saw 427% revenue growth, illustrating a significant jump in AI chip sales.
However, it’s crucial to remember that Nvidia is much more than just AI. As a leading chipmaker, the company benefits from tailwinds from industries across the technology sector. For example, Nvidia’s gaming division includes revenue from chips sold to consumers, who use the company’s hardware to power custom gaming PCs. The segment also benefits from Nvidia’s role as the exclusive supplier of chips Nintendo‘s Switch video game console, which has sold 141 million units to date.
Gaming revenue rose 18% year-over-year to nearly $3 billion in the first quarter of 2025.
In addition, Nvidia’s hardware provides power Tesla‘s range of electric and increasingly autonomous vehicles. The chips are crucial for Tesla’s self-driving technology, a sector where demand for chips is only likely to continue to rise for the foreseeable future. Comments from Nvidia CFO Colette Kress support Nvidia’s significant potential in this area, as she expects automotive to be the “largest industry vertical.” [the] Data center [segment] this year.”
Despite Nvidia’s share price rising over the past year, it remains an attractive investment. The company’s price-to-earnings-growth ratio (PEG) has fallen to less than 1, making it an excellent value and a screaming buy right now.
2.Microsoft
Like Nvidia, Microsoft has received a lot of attention from Wall Street in the past year. The company was an early investor in AI, investing $1 billion in ChatGPT developer OpenAI in 2019. The head start has given Microsoft exclusive access to some of the most advanced AI models in the industry, allowing it to integrate the technology into its product range.
Since early 2023, Microsoft has added AI features to its Office productivity suite, enhanced its Bing search engine with elements of ChatGPT, and strengthened its Azure cloud platform by expanding its library of AI services. Recently, the company announced a new line of computers called Copilot+ PCs, which are equipped with special neural processing units (NPUs) to perform various AI tasks more efficiently.
The move could make Microsoft more competitive against Apple, which also has its own line of AI PCs in the works. Microsoft’s lead could work to its advantage in the computing world, as Apple is catching up in AI.
Microsoft last month released its fiscal third-quarter 2024 earnings results. Revenue rose 17% year over year and exceeded expectations by more than $1 billion. The company’s AI efforts appeared to boost multiple areas of its business, with revenue in the productivity and business processes segment rising 12% thanks to increased sales of Office products. Meanwhile, Microsoft’s intelligent cloud division achieved 21% revenue growth.
Microsoft shares have risen nearly 1,000% over the past decade, undoubtedly creating more than a few millionaires. Still, the rise of AI suggests there is still plenty of room for the tech giant. The PEG ratio of 1.5 indicates that the stock is slightly overvalued.
However, Microsoft’s position as the most valuable company in the world, in addition to its massive cash reserves, makes the stock worth its high valuation and one that could make you a millionaire with the right investment.
Should You Invest $1,000 in Nvidia Now?
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Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Alphabet, Apple, Microsoft, Nvidia and Tesla. The Motley Fool recommends Nintendo and recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
2 Millionaire-Maker Technology Stocks was originally published by The Motley Fool
