These companies are killing it in technology and could deliver huge gains over the next decade.
Stocks have been on the rise this year, with S&P 500 to date by 15%. The index is on track to surpass last year’s growth, as the S&P 500 rose 13% over the same period (January-June) in 2023.
Wall Street has been particularly bullish on tech stocks thanks to advances in areas like artificial intelligence (AI). The same was true this time last year. However, the key difference is that there have now been several quarters of tangible results proving that AI is indeed increasing profits for some companies and is a worthy venture.
However, the technology is much more than AI. The industry covers countless sectors that are likely to keep it expanding for decades. As a result, it may be a good idea to make a significant investment in companies with exposure to AI and other technology areas. Innovative organizations that lead critical parts of the industry can reap huge benefits in the long run as the technology market expands.
So you’re looking to invest $50,000 in the stock market? Here are two of the best stocks money can buy in 2024 (and even worth buying with a smaller investment).
1. Nvidia
NvidiaS ‘ (NVDA -0.36%) business has exploded over the past year as it has become a leader in AI. Its chips have become the gold standard in the industry, coveted by developers around the world. As a result, the company’s stock is up 196% year-over-year, driven largely by excitement over AI. However, as a major chip maker, Nvidia has positions in multiple markets outside of AI that could further grow its business for years to come.
Before the recent boom in AI, Nvidia was best known for its prominent role in gaming. The company was one of the first to sell consumer graphics processing units (GPUs), which gamers use to custom-build high-powered gaming PCs. Nvidia’s success in the industry gave it the financial resources to branch out into other technology sectors such as data centers, gaming consoles, consumer products, self-driving cars and AI.
The surge of interest in AI began early last year. However, Nvidia was a promising growth stock long ago, with its share price rising 338% in the five years leading up to 2023. AI has only strengthened Nvidia’s outlook and value as a long-term investment.
In the first quarter of 2025 (ending April 2024), Nvidia’s revenue grew 262% year over year, driven primarily by a 427% increase in its data center segment (representing a increase in AI GPU sales). However, the company also saw encouraging growth in gaming and automotive, where revenue rose 18% and 11%.
The automotive segment includes revenue from chips supplied to companies leading the way in self-driving technology. The market is still in its infancy, but could be a major growth catalyst as chip demand grows alongside the expanding industry.
In addition to the massive upside potential across technology, Nvidia’s price-to-earnings-to-growth (PEG) ratio is less than 1, indicating that its stock remains a value play despite its recent rally. At its current position, an investment of $25,000 would net roughly 201 shares in Nvidia — significantly more than a few months ago, thanks to a recent stock split.
At this price, the company is screaming buy this year for long-term-minded investors.
2. Amazon
Like Nvidia, Amazon (AMZN -2.33%) has significantly expanded its reach in technology. Since its founding in 1994, Amazon has ventured into and eventually dominated numerous industries, including e-commerce, video streaming, and cloud computing.
It’s as if the company can do no wrong, with solid leadership and large financial resources allowing it to expand and overcome unexpected obstacles. As a result, its stock is a compelling option as it continues to see gains in retail and develops its roles in AI and digital advertising.
In the first quarter of 2024, Amazon’s revenue rose 13% year over year. The company benefited from massive gains in operating income, more than tripling from last year to $15 billion thanks to growth in its retail segments and its highly profitable cloud platform, Amazon Web Services (AWS).
In addition, the quarter signaled new business for the company, with ad revenue rising 24% following the introduction of ads on its Prime Video streaming service. Amazon has a competitive advantage in the industry with a major market share in streaming. This could allow it to dominate the emerging streaming advertising market in the coming years, further diversifying Amazon’s business.
An investment of $25,000 would buy roughly 130 shares of Amazon at the current price. The company’s stock has risen more than 100% over the past five years, but could surpass that figure as it continues to expand into AI and other areas of technology. Like Nvidia, Amazon’s PEG is also less than 1, making it a very good stock to move into 2024.
John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.