Many tech stocks have proven to be thriving over the years. However, many of them have subsequently crashed. So today, we're going to look at tech stocks that can make you millions with significantly less risk. With that in mind, here are three tech stocks to watch:
Sectors to watch
While tech stocks in general are likely to perform well, there are two areas in particular worth watching: The artificial intelligence (AI) industry is expected to grow significantly, with the global market expected to reach US$1.8 trillion by 2030. Continuous innovation and increasing adoption across sectors are key drivers of this growth.
Additionally, the semiconductor sector is crucial to AI and other advanced technologies. With innovations in optoelectronics and specialty semiconductors, companies making strides in this space are sure to thrive. Let's take a look at the tech stocks supporting this growth.
Kinaxis
Let's start with Kinaxis (TSX:KXS), which specializes in AI-integrated supply chain management software. The company's RapidResponse platform helps companies use AI to analyze data and detect issues to manage and optimize their supply chains. With a strong client list that includes Merck and Agilent Technologies, Kinaxis is a major player in the AI space.
Kinaxis stock reported first-quarter 2024 revenue of $160.9 million, beating the consensus estimate of $158.3 million. Earnings per share (EPS) for the quarter was $0.36, beating the $0.30 estimate. This represents a notable improvement from first-quarter 2023, when revenue was $136.8 million.
Going forward, analysts have a target price for Kinaxis stock of $199.44, with a high of $225 and a low of $175. The company is expected to continue to benefit from the increasing adoption of AI in supply chain management, driving revenue and profit growth.
Celestica strain
Another company whose stock is expected to rise is Celestica (TSX:CLS). Celestica shares are a leader in design, manufacturing, and supply chain solutions for a variety of sectors, including aerospace, defense, healthcare, and industrial. The company leverages advanced technologies, including AI, to optimize manufacturing processes and supply chains.
Celestica reported revenue of $1.8 billion for the first quarter of 2024, up from $1.8 billion in the same period last year. Net income was $35 million, up slightly from $32 million in the first quarter of 2023. But the future looks even brighter.
Celestica's stock is expected to continue its steady growth trajectory, driven by a diverse customer base and strong demand in sectors like healthcare and defense. The company is focused on integrating AI into its manufacturing process, which could improve operational efficiency and drive long-term growth. And with its stock up 318% last year, it's definitely a tech stock that millions could invest in.
Open Text stock price
Finally, we have OpenText (TSX:OTEX), which specializes in enterprise information management solutions. The company offers AI-powered products for content management, business process management, and customer experience management. The company has a strong market presence and a history of steady growth.
In its most recent quarter, OpenText reported revenue of $1.2 billion, up from $1.1 billion a year ago. Adjusted earnings per share were $0.89, beating the market consensus estimate of $0.85. Additionally, strategic acquisitions and a continued focus on expanding its AI capabilities have positioned the company well for future growth. Analysts have a positive outlook on the company's stock, expecting it to benefit from growing demand for AI-driven enterprise solutions.
