The tech market has made many millionaires over the years. In fact, investing mogul Warren Buffett's holding company, Berkshire Hathaway, has dedicated over 40% of its portfolio to the industry. Meanwhile, Berkshire's value increased at an estimated compound annual growth rate (CAGR) of 18% from 1965 to 2023, outperforming the S&P 500's annual return of about 10%.
Of course, past growth doesn't always guarantee future gains. However, advances in budding markets like artificial intelligence (AI), cloud computing, e-commerce, and more suggest tech still has plenty more to offer investors over the long term. The AI market on its own is expected to grow at a CAGR of 37% until at least 2030, which would see it hit nearly $2 trillion in spending.
So, it's not too late to consider buying these two millionaire-maker technology stocks this month.
1. Intel
Intel (INTC -0.65%) was once a leader in the chip market, best known for its dominance in central processing units (CPUs) -- which are critical for computing tasks. While the company has retained a majority market share in CPUs, a boom in AI has shifted chip demand. Graphics processing units (GPUs) have become crucial to the tech market with their ability to handle the intensive workloads that come with training AI models, rendering video games, and mining cryptocurrency.
The changes in the industry put Intel on the back foot while GPU leader Nvidia enjoyed soaring earnings and stock growth. However, Intel has pivoted its business to AI and could deliver major gains in the coming years. In April, the company unveiled AI-enabled Xeon 6 processors and its Gaudi 3 accelerator, which Intel has said delivers "50% on average better inference and 40% on average better power efficiency than Nvidia H100 -- at a fraction of the cost."
In addition to new product designs, Intel is vastly expanding its chip manufacturing operations. The company is working to generate revenue by making chips for other companies, which could secure it a lucrative position in AI. The move could allow Intel to profit from rising chip demand across the industry by even manufacturing chips for its competitors.
Of course, manufacturing is costly, and it will take time for Intel to see returns on its hefty investment. However, plans to prioritize opening plants in the U.S. could see it gain some of tech's most prominent players as clients.
Intel's stock is trading at about 28 times its forward earnings, making it a significantly better value than fellow chipmakers Nvidia and Advanced Micro Devices. And with solid growth opportunities across tech, Intel is a company that could make you a millionaire with the right investment.
2. Amazon
After a stellar growth year, it's hard not to be bullish about Amazon (AMZN 3.90%). The company is up by nearly all accounts since the start of 2023, as seen in the chart below.
Data by YCharts
Amazon has enjoyed immense growth in its stock price, quarterly revenue, operating income, and free cash flow. And yet, its price-to-sales ratio of about 3 suggests it remains a bargain buy.
The company has benefited from an impressive turnaround in its e-commerce business after an economic downturn in 2022 led to steep declines. Easing inflation and strategic cost-cutting measures have paid off for Amazon and illustrated its ability to navigate tricky market conditions successfully.
In its first quarter of 2024 (ended in March), Amazon's revenue increased by 13%, outperforming Wall Street estimates by $750 million. Its retail segments posted similar sales growth between 10% and 12%. Meanwhile, operating income between its North American and international divisions hit a combined $6 billion, significantly improving on the $349 million in losses it experienced the previous year.
Amazon has become a household name worldwide thanks to its success in online retail. While it remains a promising part of the company's business, Amazon's role in cloud computing makes its stock a potential millionaire-maker. The tech giant's cloud platform, Amazon Web Services (AWS), posted revenue gains of 17% year over year in its latest quarter. Meanwhile, operating income nearly doubled as it hit over $9 billion, outperforming profits from Amazon's entire retail business.
AWS is investing billions into expanding its AI offerings and has the cash to continue doing so well into the future. The company has become one of the biggest threats in the budding AI market, which will likely boost earnings for years.
As a result, Amazon's stock is a no-brainer and could make you a millionaire as the company continues to thrive in e-commerce and develop its position in AI.
