The 3 Best Tech Stocks to Buy in August

Stocks to buy

Fed Governor Michelle Bowman, a senior Federal Reserve official, recently warned of multiple additional rate hikes needed to address inflation. Bowman noted in Atlanta that inflation remains above the Fed’s 2% target due to a job market with more openings than available workers. Analysts predict at least one more interest rate hike in 2023 or 2024 solely to address inflation.

Inflation concerns are certainly a headwind for the overall market. Indeed, we saw what these concerns did to the stock market last year.

However, despite these macroeconomic concerns, I’ve identified three promising growth stocks worth buying in August. These companies each have innovative and unique product offerings, and continue to supply strong growth.

Copa Holdings (CPA)

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Copa Holdings S.A (NYSE:CPA) is the parent company of Copa Airlines, a dominant Latin American aviation provider. Copa operates a fleet of 97 aircraft flying to 78 destinations in 32 countries, focusing on consumer convenience with a low cost operating model.

This operating model is working, with Copa posting strong financials in 2022. Last year, revenue reached $2.97 million (up 96% year-over-year). Its gross income also hit $800 million (up 119.96%), and net income surged to $348 million (up 693.85%).

Copa is maintaining its growth tailwinds. Airline industry growth is currently fueled by rising passenger numbers coming out of the recent post-pandemic recovery and economic rebound. Accordingly, Copa has been rewarded by expanding its fleet in order to gain more customers. Impressively, Copa plans to acquire 20 new aircraft by the end of 2024.

Copa’s strategic Panama operations minimize weather-related disruptions and optimize traffic across key North, Central, and South American markets. Copa aims to leverage its robust hub for expanded locations, enhancing its growth prospects and improving its customer experience.

Analysts hold a positive outlook on CPA stock, with a consensus buy rating and a median price target of $148.08 among 13 Yahoo Finance analysts. Copa’s immense growth potential and superiority in its industry make it an exceptional buy today.

Advanced Micro Devices (AMD)

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Advanced Micro Devices (AMD) (NASDAQ:AMD) is a semiconductor company that designs and develops computer processors and graphics chip technologies. Notably, AMD excels in producing CPU and GPU graphics chips, which are used in a wide range of high-growth industries.

Because of its innovative approach and commitment to delivering high-performance computing solutions, AMD is a high-profile player in the field of semiconductors. On a year-to-date basis, AMD stock has surged 72.5% at the time of writing. This surge is notable, but so is the growth rate of the overall chip market. The global semiconductor market is expected to grow at a 12.2% compounded annual growth rate (CAGR) from $573.44 billion in 2022 to $1,380.79 billion in 2029. Thus, there’s plenty of growth where that came from, as far as investors are concerned.

Recently, AMD announced that it appointed Phil Guido as the new Executive Vice President and Chief Commercial Officer. Guido has more than 30 years of experience at IBM (NYSE:IBM), serving as the company’s general manager and managing partner. He offers unique experience related to the development of potential partnerships within this sector, and is poised to lead AMD’s worldwide sales organization to bring AMD’s cutting-edge and convenient tech solutions to a growing clientele.

August is a great time to consider buying AMD stock. Yahoo Finance’s 38 analysts have a mean price target of $125.18, ranging from $54.33 to $181.77. With its recent management change and strong financials, AMD is set to see its growth improve over time.

Broadcom (AVGO)

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Broadcom (NASDAQ:AVGO) is a global supplier of semiconductor and infrastructure software. Like the other names on this list, Broadcom has been on a tear this year. In fact, AVGO stock is up roughly 60% year-to-date. Not bad.

Yahoo! Finance reports 29 analysts predicting a $850.74 mean 12-month price target, with the range spanning from as low as $530.76 to a high of $954.27 per share. Notable analysts also re-affirmed their “buy” and “strong buy” consensus on AVGO stock.

That’s likely due, in part, to strong financials out of Broadcom this past quarter. The company’s $8.73 billion in Q2 revenue beat expectations by $20 million, with $6.81 billion being driven by semiconductor solutions (comprising 78% of revenue). Additionally, the company’s $10.32 of earnings per share exceeded expectations by 18 cents, leading the company to declare a quarterly common stock dividend of $4.60 per share, which is great news for growth-oriented investors who also like passive income.

Broadcom continues to make progress on its acquisition of VMware, with Broadcom receiving provisional clearance in the United Kingdom. The company secured legal and foreign investment clearances for the merger in multiple jurisdictions, which is set to finalize shortly. The deal’s closure will significantly enhance Broadcom’s software portfolio and expand its presence in the applications market. This acquisition also gives Broadcom a significant foothold in cloud computing, as VMware is a leader in cloud computing infrastructure.

On the date of publication, Michael Que 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.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

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