2 Top Tech Stocks That Could Make You a Millionaire

The technology industry has created many millionaires over the years. Since 2014, Nasdaq-100 Technology Sector increased by 377%, providing a considerably higher growth than that S&P 500184% increase. Macroeconomic concerns have caused the market to slide over the past month, with the Nasdaq-100 technology sector down about 7%.

However, the decline is precisely why keeping a long-term perspective when investing in technology is crucial. The industry benefits from consistent innovation and investment from companies that push the market forward. As a result, it is no coincidence that the top five most valuable companies in the world are all very active in technology, in leading industries such as consumer products, chip design, productivity software, cloud computing, e-commerce and many others.

These sectors continue to expand today, driven by advances in related technologies such as artificial intelligence (AI), meaning it’s not too late for new investors to see big gains over the next decade. So here are two top tech stocks that could make you a millionaire with the right investment.

1. Nvidia

Whether you’re a casual investor or a professional trader, you probably know Nvidiahis (NVDA 0.98%) skyrocketing since the start of 2023. The company’s market value was around $360 billion at the start of last year and has since skyrocketed 751% to more than $3 trillion, becoming the first chipmaker to achieve a such performance.

Nvidia has dominated the graphics processing unit (GPU) space for years, with desktop GPU market share steadily growing from 65% in 2014 to 88% in 2024. Much of that time, the company’s success has come from selling its GPUs directly to consumers. which used the chips to build high-performance PCs for gaming and video editing.

However, the advent of AI has shifted demand for data center chips from central processing units (CPUs) to GPUs, with Nvidia perfectly positioned to supply hardware to countless companies. GPUs are critical to AI development because they can multitask. As a result, Nvidia’s stock and earnings have risen in recent months.

Data by YCharts

This chart shows the massive financial gains Nvidia is enjoying since the start of 2023 as sales of its AI GPUs have skyrocketed. The company achieved quarterly free cash flow of $15 billion this year, far outpacing its rivals. Fellow chipmaker AMDits free cash flow reached $439 million, while Intelis at a negative $3 billion.

Nvidia’s stellar earnings aren’t just helping it in AI, but in technology as well. With more cash reserves than its competitors, the company has the wherewithal to follow the market and continue to invest in its technology, whether the industry moves toward self-driving vehicles, virtual/augmented reality, or another sector.

The company’s price-to-earnings (P/E) ratio is high at 46. However, this figure is not much higher than the five-year average of 42, when Nvidia stock rose more than 3,000%. As a result, Nvidia is worth considering right now as a stock that could make you a millionaire.

2. Microsoft

Microsoft (MSFT -0.15%) It’s no stranger to turning people into millionaires, with its stock up 430,000% since its initial public offering in 1986. The company has reached historic heights thanks to the success of homegrown brands like Windows, Office, Azure, Xbox and LinkedIn. These products have contributed to Microsoft’s strengths as the king of software, enabling it to gain positions in technology sectors such as operating systems, productivity software, cloud computing, video games, social media, and more.

As a result, Microsoft’s reach into technology is vast, with growth catalysts across the industry. The company has earned a reputation for reliability due to financial growth and consistent inventory. In the past five years alone, Microsoft’s revenue and operating income have grown steadily by 96% and 120%, respectively. Meanwhile, quarterly free cash flow rose 123% to $23 billion.

Microsoft used its massive earnings to regularly reinvest in its business. In 2019, with the foresight of the century apparently, the company invested $1 billion in ChatGPT creator OpenAI. That figure has since grown to around $13 billion, giving Microsoft access to some of the most advanced AI models on the market.

The collaboration has seen Microsoft implement AI into its software offerings, with new tools available on Azure and a range of generative features on its productivity platforms. Windows’ AI expansion boosted its entire business, with revenue up 16% year-over-year in fiscal 2024 and operating income up 24%. The period delivered impressive growth in productivity and cloud computing, with sales in these segments growing by 12% and 20% respectively.

Microsoft’s P/E of 35 doesn’t exactly scream bargain. However, it doesn’t tell the whole story either. The figure is only slightly higher than the company’s 10-year P/E average of 32, indicating that its stock is not often put on sale. The company’s stock is up 834% over the past decade, suggesting it remains a compelling way to invest in technology right now.