The U.S. gross national debt exceeded $32 trillion on June 16th for the first time. This $32 trillion threshold was achieved 9 years earlier than pre-pandemic predictions indicated, mainly to the utilization of trillions of dollars in emergency funds. The House Appropriations Committee began considering its next spending bills, and if the individual bills are not approved by the end of 2023, a 1% automatic cut will take place. Furthermore, the House Republicans started considering a new round of tax cuts, as this bill will expand the standard deduction for individual taxpayers and business tax benefits intended to promote consumer investment while minimizing energy tax credits. With these bills proceeding to be enacted, these three must-buy stocks on major deals have been centering their business around this for explosive growth. Major catalysts for these companies most likely will elevate analyst positions on them as a “must-buy.”
Marvell Technology (MRVL)
We can’t discuss must-buy stocks on major deals without mentioning Marvell Technology (NASDAQ:MRVL). This company is a leading supplier of data infrastructure semiconductor solutions, providing high-performance standard and semi-custom products. As a leader in technology markets that now require artificial intelligence (AI), Marvell has been experiencing substantial growth recently.
Due to emerging innovations in AI, the global semiconductor market is projected to grow at a 12.2% CAGR to $1,380.79 billion by 2029.
MRVL has grown 35.70% YoY due to this recent AI wave. The company’s Q1 revenue was $1.32 billion, beating consensus by $20 million. Non-GAAP earnings per share were $0.31, beating consensus by $0.02. Net revenue for Q2 is projected to be $1.33 billion, ahead of consensus by $20 million once again.
Marvell’s biggest catalyst will be the numerous products in the company’s product offerings that are perfect for enhancing AI capabilities. Current AI data centers require technology similar to Marvell’s high-speed PAM4 optical DSP platform. Additionally, AI data centers require connection by high-bandwidth, low-latency optical links – a market Marvell has pioneered. The company also recently announced its next generation 51.2T Teralynx 10 ethernet switching platform to fulfill consumer demands.
Yahoo Finance reports 26 analysts with a mean price target of $65.50, ranging from $50.00 to $100.00. In addition, notable firms believe in upside for MRVL stock, having all maintained and reiterated “Buy” and “Outperform” ratings. All in all, Marvell’s product selection will provide a unique competitive advantage in its industry that will foster growth.
Snowflake (SNOW)
Snowflake (NYSE:SNOW) is a cloud-computing-based data company that provides data storage, processing and analytics solutions to businesses in various fields and sizes. With a customer base that includes over a quarter of the 2000 Forbes G2K companies, Snowflake is a leader in the data cloud industry.
Year to date, SNOW is up 30.64% and 33 analysts predict it to reach up to $242 in a year. The global cloud-computing services market as a whole was valued at $718.23 billion. It is forecasted to reach $2.1 trillion by 2030 at a 14.7% CAGR.
Snowflake boasts strong financials over the past 3 years with revenue growing at a 90.3% CAGR. The company has seen $660.47 million Cash from Operations over the past year, over 10 times greater than its sector median. Snowflake also manages its operational expenditures extremely well, with a 39% levered FCF margin over the past year. This is over 4 times greater than its sector median and a strong indicator for profitability.
Management has also been quick to pursue its acquisition plan. Snowflake recently acquired Neeva, a generative AI search engine, for integration into its data cloud services to accelerate searching speeds. Snowflake also acquired Myst.ai to incorporate Myst’s machine learning (ML) models into its data cloud.
SNOW is a prospective investment opportunity because of its strong financials, market cap growth and AI & ML acquisitions. It is a shoo-in for must-buy stocks on major deals.
Palantir Technologies (PLTR)
Palantir Technologies (NYSE:PLTR) offers cutting-edge solutions for businesses to analyze and organize large volumes of data efficiently. Every action on a device generates data, propelling the global need for big data analytics.
PLTR is up 155.09% YTD, and one-year price targets are bullish to reach $26.80 and $35.59 in 2025.
The big data analytics market size was valued at $271.83 billion in 2022 and is projected to grow at a 13.5% CAGR to $745.15 billion by 2030. Since 2019, PLTR has consistently shown robust financial performance, achieving an average annual revenue growth of 34.15%.
The main tailwind for Palantir is its launch of a new AI platform (AIP) which is designed to boost data analytics. This cutting-edge platform harnesses the power of AI to drive superior results and outcomes. With the seamless integration of AI technologies into the existing Palantir ecosystem, any business can harness the power of this revolutionary technology. AIP empowers organizations with data-driven decision-making, streamlining operations, gaining a competitive advantage and enhancing customer experience through advanced data analysis. AIP can further generate revenue and sustain growth through licensing, subscriptions, services, industry expansion, upselling, cross-selling and partnerships. With the adaptable Palantir AIP platform, advanced AI and customer focus, Palantir leverages diverse customer needs for success.
PLTR stock presents a compelling investment opportunity, driven by its robust financial performance and the launch of AIP. It enables data-driven decision-making for all organizations and adequately positions Palantir for long-term success, making it one of the must-buy stocks on major deals .
On the date of publication, Michael Que 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.
