The earnings season has just started with banks reporting mixed results, disappointing investors. The numbers aren’t as great as expected and while only a few companies have reported and they do not set the tone for the earnings season, they sure do set the momentum. With the economy improving, the upcoming months could be interesting for the stock market and investors should start looking for tech stocks to buy.
In the past two quarters, tech companies have set the ball rolling by reporting stellar numbers and this has helped the S&P 500 and Nasdaq soar to new highs time and again. Artificial Intelligence (AI) will drive the results again and we could see tech companies lead the market. Smart investors know that now is the ideal time to snap up top tech stocks before they report earnings. With positive numbers, the stock will jump higher.
Let’s dive deep into the three tech stocks to buy now.
Tech Stocks to Buy: Nvidia (NVDA)
Tech darling Nvidia (NASDAQ:NVDA) has taken the market by storm after every quarterly report and I believe it will continue doing the same throughout this year. Driven by the soaring AI demand, Nvidia is set to keep the momentum going. The imbalance between the demand and supply of AI chips has put Nvidia in a solid position and its numbers are impressive.
For the first quarter, it saw a 262% year-over-year jump in revenue to $26 billion and a 427% YOY jump in the data center revenue to hit $22.6 billion. Once known for setting a gold standard in Graphic Processing Units (GPUs), Nvidia has become the hottest company today. It announced a stock split in the first-quarter results which has made the stock accessible to all. For the second quarter, it is aiming for a revenue of $28 billion.
The management has announced that it will launch AI chips annually instead of every two years, to meet the soaring demand. Its Blackwell platform has boosted the company’s sales and recent supply checks by investment bank UBS highlight solid momentum for the Blackwell rack-scale systems. The analyst stated that the company’s order platform is much larger than just two months ago.
Trading at $129, the stock is up over 100% year-to-date and has been on an unstoppable rally since 2023. The stock soars after the quarterly results and takes other AI stocks higher. Nvidia is set to announce results next month.
Microsoft (MSFT)
Set to announce results on July 30th, Microsoft (NASDAQ:MSFT) is ready for another smashing year. The company has beat expectations in the past four quarters and the stock is well on its way to $500. As one of the top tech companies in the world and the largest company in terms of market cap, Microsoft holds a very strong position in the industry.
Its Windows and Office tools have become an integral part of several businesses and the investment in AI has already started to pay off. Microsoft has integrated AI into its products and has seen a surge in cloud computing revenue. It has also unveiled Copilot Plus PCs and Surface laptops. The company is known for innovation and is taking every step to maintain its dominance in the industry.
Trading at $453, the stock is up 22% year-to-date and I believe it will hit $500 before the end of the year. A solid long-term pick, Microsoft has everything you would look for in a successful company. The upcoming results could give a boost to the stock and take it higher. It also pays dividends and has a yield of 0.66%, making it a suitable stock for passive income investors.
Buy Microsoft stock before the company announces results and sees an immediate upside.
Palantir Technologies (PLTR)
I have been writing about Palantir (NYSE:PLTR) stock since the start of the AI race and I have seen the company go from a small industry player to a leader in the industry. Palantir has been in the industry for more than two decades and is known for working on secret government projects. While it had limited exposure to the commercial sector, the management has changed this in the past year.
In the first quarter, it saw a 69% jump in the commercial client count and a 40% YOY jump in commercial revenue. It was its sixth consecutive quarter of GAAP profitability. The company developed an Artificial Intelligence Platform (AIP) and organized boot camps for organizations to learn how the platform can handle their data. This leads to growing interest in Palantir’s services followed by higher conversions.
The company has partnered with Starlab Space to leverage data modeling using AI technology and to improve the operations of the space stations. It has also partnered with Voyager Space and will provide AI tools to help with the company’s commercial and defense segment. A pioneer in innovation, Palantir could be a winner of the AI race.
Exchanging hands for $28, PLTR stock is up 69% YTD and is at a 52-week high. I believe the second-quarter results will push it towards $35. The company announces results on August 5.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.