In this dynamic world, finding stocks with the potential to thrive over the long haul is akin to discovering hidden treasure. As technology steps into a new decade, three stocks stand out on the horizon, poised to dominate their respective industries. This has led to the rise of stocks to buy.
The first one, the electric vehicle pioneer, continues breaking records and forging ahead in autonomous driving and sustainable energy solutions. With its AI-powered cybersecurity platform, the second one leads the charge in securing the digital world against evolving threats. Meanwhile, the third is revolutionizing data centers, AI technology, and embedded systems, garnering attention from tech giants worldwide.
In short, the article explores these companies’ strategies and potential for monumental growth. It delves into electric mobility, cybersecurity resilience, and cutting-edge processors, discovering why these stocks to buy may lead to the next decade’s financial triumph.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) may reap a significant long-term edge, grounded in its robust fundamentals and strategic vision. Tesla’s remarkable capacity to consistently achieve record-breaking vehicle production and deliveries sets a solid foundation for its long-term success.
In Q2 2023, the company reported record revenue of approximately $25 billion, underscoring its capability to scale operations effectively. This is anticipated to persist as the Model Y gains traction worldwide.
The company’s full self-driving technology aims to enhance safety and unlock a new revenue stream through the Robotaxi network. This, in turn, may boost customer loyalty and attract new buyers as the technology evolves. Also, Tesla’s development of the Dojo training computer may be a game-changer in AI. It’s a reason it’s one of those stocks to buy. This in-house solution is designed to significantly reduce the cost of training neural networks, making AI development more efficient and cost-effective.
Fundamentally, Tesla’s supercharging network, with over 50,000 connectors and 5,000 locations, is a strategic asset. This extensive network provides Tesla owners with the convenience of fast charging, reinforcing the attractiveness of Tesla vehicles. Additionally, Tesla’s open approach to sharing its charging standard with other automakers fosters industry growth and the widespread adoption of electric vehicles (EVs).
Further, the development of the 4680 cells represents a significant advancement in battery technology, offering higher energy density and cost-efficiency. This technological edge reinforces Tesla’s position as an industry leader in electric mobility.
Finally, Tesla’s foray into the energy sector through products like Megapack and Powerwall diversifies its revenue streams. Thus, integrating energy solutions with electric vehicles, exemplified by features like Charge on Solar, provides unique value to customers.
Crowdstrike (CRWD)
CrowdStrike’s (NASDAQ:CRWD) annual recurring revenue represents a 37% (Q2 2024) increase. Over an 80% YoY increase in deals involving eight or more Falcon platform modules indicates high customer adoption and retention.
The Falcon platform, powered by AI, is recognized as the foundational cybersecurity platform for customers. Its cloud-native architecture and lightweight sensor form factor offer easy and fast deployment, making it adaptable for any digital enterprise.
The cybersecurity market is undergoing consolidation, favoring companies with comprehensive platforms over point-to-point product vendors. Smaller, specialized firms struggle to compete with CrowdStrike’s platform approach. CrowdStrike’s platform reduces Total Cost of Ownership (TCO) by eliminating the need for multiple-point products, reducing complexity, and streamlining operations.
Notably, the cloud security market may reach $18 billion by 2026. Falcon Cloud Security, focusing on the Cloud Native Application Protection Platform (CNAPP), has rapidly grown. The ending ARR for Falcon modules deployed in public clouds grew 70% YoY, making CrowdStrike a leader in cloud security. All in all, this makes it one of those stocks to buy.
Also, the Falcon Identity Protection offering has experienced remarkable growth, ending with ARR surpassing $200 million, a 194% YoY increase. Identity-based attacks are rising, making identity protection a critical need for organizations. Further, LogScale has grown substantially, with ARR exceeding $100 million, driven by its speed, flexibility, and cost-effective licensing model. Thus, several customers are migrating from legacy SIEM solutions to Falcon’s unified platform.
CrowdStrike’s partnership ecosystem is a significant contributor to its growth. CrowdStrike is Amazon (NASDAQ:AMZN) AWS’ largest cybersecurity go-to-market partner, winning the ISV Partner of the Year Award. This validates the company’s leadership in cloud security. Lastly, its partnership with Dell (NYSE:DELL) has generated eight figures in deal value within a short span, and the partnership has facilitated consolidation deals and increased partner engagement.
AMD (AMD)
Advanced Micro Devices, or AMD (NASDAQ:AMD) presence in the data center market, has been steadily expanding, primarily driven by its EPYC server processors. In recent years, AMD’s EPYC CPUs have gained recognition for their impressive performance and energy efficiency. These processors have found favor with major cloud providers, enterprises, and even supercomputing installations.
With the launch of the 4th Gen EPYC CPUs, AMD witnessed a surge in adoption, particularly among cloud providers. AWS, Alibaba (NYSE:BABA), Microsoft (NASDAQ:MSFT), and Oracle (NYSE:ORCL), among others, have deployed Genoa instances, highlighting the performance and efficiency of AMD’s server processors.
Furthermore, AMD’s server product portfolio continues to grow. The introduction of Bergamo and Genoa-X has expanded its offerings, addressing various workload requirements. For example, Microsoft Azure has announced Genoa-X HPC instances that deliver significantly higher performance for technical computing workloads.
Strategically, AMD focuses on capitalizing on the immense potential of being an AI tech supplier. AMD’s Instinct MI250 and MI300 hardware and software solutions support AI deployments. In addition to hardware, AMD places significant emphasis on software optimization. Its ROCm software stack continually evolves to provide developers with the tools they need to harness the full potential of AMD’s AI hardware. The compatibility with popular AI frameworks like PyTorch, TensorFlow, and Triton makes it easier for developers to leverage AMD’s AI solutions effectively.
Finally, AMD has experienced growth in the embedded segment driven by various industries, including industrial, healthcare, automotive, and broadcast. Therefore, the company’s adaptive computing product portfolio, including the Versal Premium VP1902 adaptive SoC and Spartan UltraScale+ FPGA family, addresses the specific requirements of these industries.
On the date of publication, Yiannis Zourmpanos did not hold (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.
