2 Millionaire-Maker Technology Stocks | The Pied Fool

The tech industry has made many millionaires, with the Nasdaq-100 technology sector up 362% since 2014. The index has significantly outperformed S&P 500 index, which rose 179% over the same period. Technological advances are constantly pushing the market forward, with regular breakthroughs requiring consumers and businesses to upgrade their hardware and software.

As a result, it’s no surprise that four of the five most valuable companies in the world are technology leaders, active in industries such as consumer products, productivity software, chip design and digital advertising. Emerging sectors such as artificial intelligence (AI) and cloud computing are currently some of the biggest drivers of industry growth, making their market leaders attractive investments.

So here are two millionaire tech stocks to buy this August before it’s too late.

1. Nvidia

After more than a year of rising stock prices and sparkling quarterly earnings, it’s probably no surprise that Nvidia (NVDA 3.76%) is on this list. The company’s shares are up 132% since last August. Meanwhile, quarterly operating income and free cash flow rose 112% and 62%, expanding its cash reserves.

A tech sell-off over the past month, fueled by fears of a recession, sent Nvidia shares down 16%. However, steady earnings growth and a dominant role in technology mean the decline only reinforces a bullish case for its stock, creating an opportunity to invest at a reduced price.

In the first quarter of fiscal 2025, Nvidia posted a 262% year-over-year gain, while operating income rose 492%. The company enjoyed significant growth in the data center segment, reflecting an increase in sales of AI graphics processing units (GPUs). Total revenue for the quarter beat Wall Street forecasts by more than $1 billion.

Stellar earnings have become a trend for Nvidia, beating expectations for at least the past four quarters. The company will release its Q2 2025 results on August 28 and is likely to follow its recent growth trajectory after its chip rival’s stellar results. Advanced microdeviceslast month. AMD has the second-largest AI chip market share after Nvidia and posted a record 115% year-over-year revenue growth in its data center segment in Q2 2024.

AMD’s win proves that AI still has a lot to offer tech companies. And as the industry leader with an estimated 80% market share in AI GPUs, Nvidia is a million dollar stock worth buying right now.

Nvidia’s price-to-earnings ratio (P/E) is high at 62, but well below its five-year average of 80. The company’s stock is up more than 2,000% on that average, making it a value relative to Nvidia’s potential.

2. Amazon

Amazon (AMZN 0.56%) has seen impressive gains over the years, with its stock up nearly 1,000% since 2014. Monster e-commerce and cloud computing success with Amazon Web Services (AWS) has seen its operating income and free cash flow skyrocket with 20,000% and 2,000% respectively during that time. In fact, the company’s free cash flow has hit more than $48 billion this year, with some analysts speculating that it could be preparing to issue its first dividend.

Thanks to its completely diverse business model, the retail giant has become one of the best ways to invest in technology. Steady reinvestment over the years has seen Amazon diversify its revenue streams and expand its reach with strong positions in online retail, AI, grocery, video streaming, digital advertising and more.

Amazon’s Q2 2024 earnings reflected its diversified business. Revenue rose 10% year-on-year after mediocre growth in its retail business. However, total operating income more than doubled from the previous year to $14.6 billion, following strong gains from AWS.

The company enjoyed impressive gains in its digital business during the quarter, with AWS sales up 19% year-over-year and ad revenue up 20%. Amazon’s role in technology is expanding rapidly and has become a larger part of its business over the years, exposing the company to markets with attractive profit margins. AWS has given the company a strong position in AI. Meanwhile, its Prime Video streaming service gives it a powerful advertising tool and a new catalyst for growth.

Like Nvidia, Amazon’s P/E of 40 is considerably lower than its five-year average of 89. The company has made many millionaires in the past, but it’s probably not done yet, making its stock a compelling option this year.