Technology is advancing in three pivotal realms: artificial intelligence (AI), fifth-generation (5G) wireless, and cloud computing. Integrated, these technologies are poised to reshape our future in the years to come. Among the array of technology companies stepping into the ring, a select few are taking the lead, driving innovation and progress.
For investors seeking portfolio growth, identifying companies at the forefront of these technological revolutions is crucial. These growth stocks are poised to surpass market expectations and offer substantial returns to shareholders over time, here are three stocks driving advancement in AI, 5G, and the cloud.
The AI Maven: Advanced Micro Devices (AMD)
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Within the realm of AI, Advanced Micro Devices (AMD) stands out. While trailing behind Nvidia in microchips and semiconductors for AI applications, AMD is making significant strides to close the gap. Encouraging early results are coming to light. In its first-quarter financial report, AMD revealed a staggering 80% growth in the revenue of its Data Center unit to $2.3 billion, driven by robust sales of its new MI300 series AI chip.
With demand soaring, AMD anticipates AI chip sales to reach $4 billion this year, doubling the initial projection made last fall. Having already sold over $1 billion worth of MI300 AI chips since their launch six months ago, AMD is already working on the next generation of AI chips and processors. Notably, AMD stock has surged by 40% over the past year.
The 5G Pioneer: Verizon Communications (VZ)
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When it comes to fifth-generation wireless, Verizon Communications is emerging as a key player. Following robust Q1 financial results and a decline in wireless subscriber losses, Verizon’s stock has been on an upward trajectory. At the close of April, Verizon reported earnings per share of $1.15 for Q1, surpassing analysts’ expectations of $1.12. Revenue hit $33 billion, in line with Wall Street forecasts.
Verizon attributed its performance to flexible plans and bundled offerings that include discounted services like Netflix. The company reported a modest loss of 68,000 monthly bill-paying wireless phone subscribers in Q1, significantly lower than the projected 100,000. A year earlier, Verizon had shed 127,000 wireless subscribers.
Verizon highlighted the popularity of its premium, customizable “myPlan” option, which includes discounted Netflix subscriptions in select bundles. Verizon’s stock has seen a 13% increase over the past year.
The Cloud Champion: Amazon (AMZN)
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Operating as the unrivaled leader in cloud computing with a 31% market share, e-commerce giant Amazon is making waves with Amazon Web Services (AWS). AWS has become a cornerstone of Amazon’s operations, posting $25 billion in revenue in Q1, exceeding estimates of $24.5 billion. Remarkably, AWS contributed 62% of Amazon’s total operating profit for the quarter.
During discussions with analysts and the media, Amazon executives attributed the company’s success primarily to the soaring demand for cloud services. The robust performance of AWS, dominating the cloud landscape, propelled Amazon to an earnings per share of 98 cents, surpassing Wall Street’s forecast of 83 cents. Earnings more than tripled from 31 cents a year prior, and total sales stood at $143.3 billion, marking a 13% increase year over year.
Amazon’s stock has surged by 44% in the previous 12 months, underscoring its strong position in the cloud computing domain.
