Dividend Stocks

Don’t Miss These 3 Tech Rockets With Limitless Upside

Even though inflation has been high for a long time, the allure of high-potential tech stocks persists.

In May, the Federal Open Market Committee (FOMC) of the Federal Reserve Board didn’t bring rates down from a record high of 5.25% to 5.5%. However, the markets are eagerly anticipating the June meeting.

Morgan Stanley (NYSE:MS) says stocks are too expensive and buyers may have too high of hopes for business results. Because of this, 2024 is expected to be a more even year with growth rates lower than 10 percent. J.P. Morgan (NYSE:JPM) expects the real GDP to grow by 0.7% in 2024 because when the pandemic ended, monetary policy became stricter and economic tailwinds stopped.

In this case, we’ll look at three tech companies with big prospects that have buy rates and double-digit upsides. The first is a strong rival in the artificial intelligence (AI) market thanks to its cutting-edge AI chipsets, which have helped it grow 20% this year. Another company is changing its financial plan to buy back a lot of its own shares and pay bonuses. Finally, a third company offers simple mobile apps and smart AI to take advantage of the growing game industry and better internet access in developing countries. Let’s delve in.

Advanced Micro Devices (AMD)

Advanced Micro Devices, Inc. (AMD) logo in the building at CNE in Toronto. AMD is an American semiconductor company.

Source: JHVEPhoto / Shutterstock.com

Advanced Micro Devices (NASDAQ:AMD) is up 20% this year due to its AI chipsets. But analysts still rate it a strong buy, with a 15% upside potential.

As businesses search for Nvidia (NASDAQ:NVDA) substitutes, AMD is poised to seize a sizable portion of the market with the launch of its MI300X GPU chipset. Nvidia controls the market for AI chips, with an 80% market share. Yet, AMD is emerging as a worthy contender.

Meanwhile, AMD dominates high-performance computing. It powers 156 new Top500 supercomputers, up 29% from last year. Many high-end supercomputers employ AMD Instinct MI300A APUs.

Moreover, AMD’s Alveo V80 is coming down the pike. Those include next-generation firewalls and network security, genome sequencing, molecular dynamics, and other computationally demanding applications.​

AMD’s first-quarter revenue was $5.47 billion, up 2.2%. And its profitability was $123 million after losing $139 million in Q1 2023. The company’s $0.62 EPS exceeded $0.61. Non-GAAP operating income was $1.13 billion, 21% more than GAAP $36 million.

Advanced Micro Devices expects Q2 sales of $5.7 billion, plus or minus $300 million, up 6% year-over-year (YOY) and 4% sequentially.

In recognition of its innovation, AMD received the IEEE 2024 Corporate Innovation Award for its chipset design leadership in high-performance and flexible computing, placing it well among high-potential tech stocks.

T-Mobile (TMUS)

The logo for T-Mobile is displayed on a sign for an indoor retail storefront.

Source: Shutterstock

T-Mobile’s (NASDAQ:TMUS) 1.59% dividend yield is below the industry average. Yet, it’s part of a substantial share repurchase and financial flexibility strategy.​

The company repurchased 21.9 million shares for $3.6 billion in Q1 of 2024. As of March 31, the business repurchased 136.2 million shares for $19.8 billion. Also, it can use an additional $11.7 billion for buybacks. Meanwhile, the annual dividend is $2.60 per share, yielding about 1.59%.

T-Mobile predicts postpaid net customer additions of 5.2 million to 5.6 million in 2024, up from 5.0 million to 5.5 million. And $31.4–$31.9 billion Core Adjusted EBITDA is expected.

Additionally, TMUS has officially finalized the $1.35 billion deal to buy Ka’ena Corporation, which owns Mint and Ultra Mobile. The purchase would use T-Mobile’s size to improve these companies’ products and services while maintaining their business structures.

Ryan Reynolds will continue as a creative executive while Mint Mobile’s owners handle T-Mobile brands. This deal is projected to enhance T-Mobile’s Core Adjusted EBITDA and Free Cash Flow later this year.​

On the product end, T-Mobile is enhancing its mid-band 5G network. The expansion moves 95% of T-Mobile’s 5G traffic to mid-band, assuring reliability and speed.

Opera (OPRA)

An image of hands controlling a game on a cellphone, a charger and mug in the background

Source: Ayunannas/Shutterstock

Opera (NASDAQ:OPRA) is one of the best high-potential tech stocks because it operates one of the preferred browsers for the gaming community, Opera GX. Although it is difficult to get a firm estimate of the gaming segment, one projection indicates that in 2024, there will be 3.32 billion active video gamers worldwide. Opera is leveraging this growth.

In addition, Opera’s lightweight mobile browsers are popular in South Asia, Africa and Latin America with underpowered devices. The company should develop significantly as internet coverage rises in these locations. Unsurprisingly, thanks to significant growth potential, analysts rate the stock a strong buy, with a 64% upside.

Most importantly, Opera’s future growth rests on new product developments. To that end, Opera One, a redesigned desktop browser, received the IF DESIGN AWARD 2024. This was due to its new architecture, AI and design. AI Feature Drops, a bi-weekly feature in Opera One, lets users test new AI capabilities.​

Also, Opera signed an agreement with Google, extending its search agreement with Google. This ensures the continued integration of Google’s search capabilities within its products​.

In addition, OPRA revealed experimental support for 150 local Large Language Model (LLM) versions in its browser. So, this makes it the first major browser with local AI model access, and a quality pick among high-potential tech stocks.

On the date of publication, Faizan Farooque 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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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