While the celebrated top-tier tech stocks can practically rest on their laurels, an elite few are pushing the narrative of innovation even further. For investors, you couldn’t ask for anything more. Basically, these are established growth plays that could benefit from second wind.
As with any sustained athletic activity, both the mind and body can get exhausted from the constant pushing. That’s where the truly phenomenal enterprises dig deep to find another gear. These are the innovators to pay attention to, especially as tech stocks enter a paradigm shift of enhanced utility and productivity.
Moving forward, only a few companies will be trailblazers for their industries – everyone else may end up playing catchup. With that, here are intriguing tech stocks to add to your watch list.
Qualcomm (QCOM)
One of the top tech stocks in the broader communications field, Qualcomm (NASDAQ:QCOM) commands significant relevancy and leadership in the 5G rollout. Fundamentally, the company is already setting benchmarks for blistering fast data speeds, low latency and the facilitation of new applications. The latter category includes development of autonomous vehicles and smart city solutions.
Looking ahead, QCOM should be on your radar for its semiconductor innovation. The company’s ongoing investments in semiconductor research and development drive innovation in areas such as mobile computing, Internet of Things (IoT) and edge computing. It really could shape the future of how machines communicate with each other.
Analysts aren’t missing the boat either, projecting fiscal 2024 revenue to hit $38.14 billion. If so, that would represent a 6.4% increase from last year’s tally of $35.83 billion. In 2025, they believe sales could reach $41.42 billion, implying year-over-year growth of 8.6%.
To be fair, although QCOM features a moderate buy rating, the average price target sits at $164.55. However, the high-side estimate (which is probably more reflective of current realities) calls for $200.
ASML (ASML)
A specialist in extreme ultraviolet lithography (EUV), ASML (NASDAQ:ASML) is a critical player among tech stocks. Frankly, plenty of the innovations that we enjoy wouldn’t be possible without the company’s expertise. Because lithography is involved in the development and production of advanced semiconductor devices, it’s a key driver for advancing innovations.
Not only that, CNBC notes that it’s the only firm in the world capable of making the complex machines necessary for developing advanced chips. That is what’s known in the industry as job security. Interestingly, though, analysts don’t anticipate much growth this fiscal year, with sales projected to reach $30.35 billion. That’s modestly higher than last year’s print of $30.12 billion.
However, in 2025, the company could ring up sales of $37.96 billion, representing 25.1% YOY growth. Admittedly, you’re paying a pretty penny for the growth, with shares trading at nearly 13X trailing-year revenue. Still, ASML is a one of a kind among tech stocks.
Analysts peg shares a unanimous strong buy. While the average price target sits at $958.60, the high-side estimate lands at $1,072.
Intuit (INTU)
To be upfront, Intuit (NASDAQ:INTU) – which is known for its tax preparation and bookkeeping software – isn’t exactly the most exciting idea among tech stocks. However, the Covid-19 crisis may have inadvertently imbued INTU stock with significant relevance. You see, more people are considering life outside the walls of corporate cubicles. Should work from home end, many may decide to venture into entrepreneurship.
In other words, we could see an acceleration of the gig economy. Even before the pandemic, the gig economy was a hot topic. Now, it’s even hotter. And because of the more complex tax profiles of independent contractors relative to employees, Intuit should see increased demand for its software. Plus, with AI becoming more integrated into various functionalities, Intuit appears very compelling.
For fiscal 2024, analysts project revenue to hit $16.05 billion. That would be an 11.7% gain from last year’s haul of $14.37 billion. For 2025, projected revenue could be over $18 billion.
Covering experts rate INTU a consensus strong buy with a $705.62 price target. However, the most optimistic estimate calls for $775.
Uber (UBER)
Easily one of the most recognizable tech stocks, Uber (NYSE:UBER) sparked a new industry: ride sharing. Before the app that hailed rides from independent operators, people had to call a taxi. Now, anyone with extra time can make use of the empty space in their vehicles. It’s absolutely genius. Not only that, Uber can potentially shift the paradigm for another sector.
With Uber Freight, the innovative tech firm can potentially revolutionize the broader shipping industry. Per its website, Freight offers flat-rate pricing, fast booking, 24/7 service and perhaps most importantly, live tracking. That helps all parties stay at ease and informed throughout the shipping process. Obviously, there are great risks here but I’m also looking forward to what the company can do.
So are analysts, who anticipate 2024 revenue to land at $43.28 billion. That’s up over 16% from last year’s result of $37.28 billion. And in 2025, they believe a top line of $50.4 billion is possible. If so, that’s 16.4% YOY growth.
Covering experts peg shares as a strong buy with an $86.09 price target. Notably, the high-side estimate shoots up to $96.
Adobe (ADBE)
One of the most powerful tech stocks when it comes to unleashing the power of creatives, Adobe (NASDAQ:ADBE) is a must-have for certain businesses. Its software supports a wide range of content, including graphics, photography, illustration, animation, multimedia/video, motion pictures and print. Again, as more people consider the gig economy, ADBE should be a long-term winner.
What’s really, exciting, though, is Adobe’s incorporation of generative AI in its software offerings. Some of the modulation capabilities that the company facilitates is simply mind blowing. It also helps accelerate productivity, with content creators able to generate quality pieces faster.
Analysts have been paying attention to the space, estimating that fiscal 2024 revenue will reach $21.46 billion. If so, that would imply a 20% leap from last year’s print of $17.89 billion. And looking out to 2025, they believe sales of just over $24 billion is possible. That would mean 11.9% YOY growth.
Covering experts rate ADBE a consensus moderate buy with a $647.67 average price target. Further, the most optimistic target calls for shares reaching $705.
Alphabet (GOOG, GOOGL)
A true stalwart among tech stocks, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is an everyday necessity. From searching for top restaurants to eat at tonight to being an easy-to-use cloud computing platform, it’s hard to imagine that there was once life before Alphabet’s Google ecosystem. Moving forward, I anticipate more of the same in this department, which would be simply fantastic.
However, as a genuine needle mover, I have high hopes for Alphabet’s AI system. Previously called Bard, Gemini is, in my opinion, a very poor counterpart to ChatGPT. What I really don’t like is Gemini’s tendency to generate false facts – and the audacity to present them as gospel. However, if Alphabet finds a way to integrate Gemini and Google Search holistically (and accurately), watch out!
For now, we’re going to have to make do with analysts’ projections for fiscal 2024’s revenue to land at $342.28 billion. That would be 11.3% above last year’s tally of $307.39 billion. And 2025 sales might reach over $378 billion.
Analysts see shares as a consensus strong buy with an average target of $164.59.
Amazon (AMZN)
You can’t have a discussion of trailblazing tech stocks without mentioning Amazon (NASDAQ:AMZN). Obviously, the company spearheaded what was possible with the internet, catalyzing the e-commerce surge. Now, when we think about online retail, we think about Amazon. Over the years, the company has branched out into several industries, including the grocery space. It’s all about disruption and displacement.
Moving forward, I don’t anticipate voodoo magic from the company. Instead, I believe Amazon will steadily drive down costs and implement efficiencies to the point where it may become pointless to go out to shop. Frankly, Amazon shipments are already super convenient and the return process is surprisingly simple.
For this fiscal year, analysts on average believe revenue will hit $641.26 billion. That’s up 11.6% from last year’s haul of $574.78 billion. And in 2025, investors may see another 11%-plus move in the top line, resulting in $714.37 billion.
Finally, covering experts rate AMZN a unanimous strong buy (among 41 individual voices). The average price target stands at $208.48, implying 18% upside potential.
On the date of publication, Josh Enomoto 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.
