In 2023, Microsoft celebrated the 40th birthday of Microsoft Windows. Not long after that launch, they decided to become a publicly traded company. Even though the company has had a few ups and downs, many people have become quite wealthy because of its success.
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“Back in 2015, I saw potential in Microsoft’s cloud strategy and invested when their stock was around $40,” says John Pennypacke, VP, Sales & Marketing at Deep Cognition. “Yes, that decision has paid off handsomely, with my investment growing over 600% since then. Microsoft’s pivot to cloud computing and its grip on the enterprise software market really drove this success.”
It’s no secret that Microsoft has been extremely profitable for investors recently. A significant part of that success has been due to its AI and cloud products. Its most recent quarterly earnings reported a profit of $12.51 billion, a 32% year-over-year (YoY) growth for the intelligent cloud unit.
Based on Microsoft’s success for investors, we wanted to find out what other companies people should be optimistic about.
Also here’s ten other companies best to invest in right now.
Nvidia
Like Microsoft, Nvidia has been on a tear over the past year. Year to date (YTD), the stock is up 144%, and its one-year return is at 164%. Much of the recent success has been powered by its push into generative AI.
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“At Deep Cognition, Nvidia’s GPUs power our AI development,” says Pennypacke. “Their lead in AI and graphics processing sets them up to ride the wave of growing AI applications across industries. I’ve seen up close how their tech keeps pushing the boundaries of what we can do in AI.”
Even though some will tell you the AI and Nvidia run is starting to lose steam, others think there is still plenty of room for it. It’s also important to remember that Nvidia was an important company before AI came into the picture. It helps run laptops, video game consoles, cloud platforms, self-driving technology, and more.
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Sketchers
Sketchers, a designer and developer of casual footwear for men, women, and children, is another company to watch out for. YTD, they’ve had a modest gain of 2%, but their stock price is up more than 19% over the past year.
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“We like SKX’s (Sketchers) attractive projected double digit growth in both revenue and earnings, which the market currently prices at a very reasonable Price-to-Earnings ratio (P/E) of 13.1x (2025),” says Ulrich Ebensperger, Founder and CEO of Ziggma.
Sketchers will report their latest earnings on July 25, and the consensus is that quarterly sales growth will be roughly 10% to $2.21 billion. This comes after they announced quarterly revenue of $2.25 billion in the previous quarter, up 12.5%.
Amazon
Many people think of Amazon as one of the biggest retailers of consumer products. While that’s true, Amazon’s revenue is much more complex.
Amazon Web Services (AWS) is the world’s largest cloud services business, with more than $100 billion in annual revenue. Similar to Nvidia, much of its recent growth has come from AI. They offer businesses everything from chips to customized language models.
“While their e-commerce platform is everywhere, it’s AWS that gets me excited as a tech leader,” says Pennypacke. “We lean heavily on AWS, and I’ve watched it become a must-have for businesses big and small. Their moves into healthcare and advertising also look promising for future growth.”
Amazon isn’t the cheapest stock, with a P/E ratio of 40.1X, but its ability to continue to generate sustainable growth from its different business units should be exciting for investors.
During the Covid-19 pandemic, social media websites like Pinterest were on fire. With people stuck inside their homes, they turned to social media to occupy their time. Unfortunately, once restrictions ended and people started venturing outside again, social media usage declined. For companies like Pinterest, this significantly impacted the stock price.
However, with significant improvements made to the platform, including better search functionality and videos, Pinterest is once again starting to soar. They recently announced that their monthly active users were up 12% YoY to 518 million people, an all-time high.
Pinterest is also benefiting from the input of activist investor Elliot Advisors, who has been very vocal about the strategic changes needed within the company.
“We like PINS because famous activist investor Elliott Advisors has identified a number of ways to drive shareholder value through growth and profitability initiatives,” says Ebensperger. “Elliott is hard at work pushing the Board to implement these initiatives after having obtained a Board seat.”
Taiwan Semiconductor
Taiwan Semiconductor recently reported a blowout quarter, with revenue up 33% to $20.8 billion. 52% of this revenue was due to chips being used for AI.
One of the biggest unknowns for a company like Taiwan Semiconductor is what the impacts of a Trump victory in November might mean. While most production is outside the United States, they are building a complex in Phoenix, Arizona. The first part should be ready in 2025, and the next two by the decade’s end. Its ability to manufacture inside the United States could greatly impact its profitability. However, even with these unknowns, the projected full-year revenue growth is 21%.
“As we cook up cutting-edge AI solutions, we know how vital advanced semiconductors are,” says Pennypacke. “Taiwan Semiconductor’s manufacturing chops make them a key player in the tech supply chain, and they’ll only become more important as demand for advanced chips in AI, 5G, and IoT keeps climbing.”
This article originally appeared on GOBankingRates.com: I Got Rich Off Microsoft: Here Are 5 Companies You Should Invest in Now
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