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The future is tech-driven, and investing in tech stocks at the forefront of innovation can be a lucrative strategy. Opportunities in growing sectors and industries like artificial intelligence, cybersecurity, renewable energy, and autonomous vehicles offer real prospects to grow your portfolio.
Established tech giants have created massive returns for investors in 2024. While they continue to offer outsized gains, the potential for explosive growth often lies with younger, disruptive companies. In many cases that means identifying companies in stocks at the true edge of innovation.
Innovation at the edge explores new ideas and approaches and novel technology that holds the potential to scale rapidly. Innovation at the edge often involves unproven ideas and companies with limited track records. This inherently carries a higher risk of failure compared to established players. But the well worn maxim dictates that the greater the risk the greater the reward. Bearing that in mind, let’s look at future tech stocks that have the potential to pump up your portfolio.
EHang Holdings (EH)
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EHang Holdings (NYSE:EH) is an excellent example of a company at the very edge of innovation and commercialization. It continues to be the only flying car stock globally to have commercialized its electric vertical takeoff and landing (eVTOL) vehicle.
The fact that EHang Holdings is currently delivering eVTOLs while its competitors remain relatively far behind is the primary reason to buy. The company delivered 26 of its eVTOL during the first quarter, up from 11 units a year ago.
Then, on June 25 the company announced that it had delivered 27 units to The Wencheng County Transportation Development Group in Zhejiang Province, China. The company is far ahead of its American competition which is now delivering prototype vehicles in very low numbers. Those companies will take time to gain regulatory approval which will continue to put them far behind EHang Holdings.
Revenues nearly tripled in the first quarter and are likely to grow even faster in the second quarter. Meanwhile, the company substantially narrowed its losses in Q1. It all suggests that EH stock is the best flying car stock available to investors.
CleanSpark (CLSK)
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CleanSpark (NASDAQ:CLSK) is a Bitcoin (BTC-USD) miner that is likely to see its stock continue to grow into the future.
Part of that truth has to do with Bitcoin prices which continue to hover in a range between $50,000 to $65,000 in 2024. Those companies that can efficiently mine the digital commodity have a massive opportunity.
That’s a big part of the reason clean spark makes sense at the moment: it is moving into a period of financial strength. I maintain that companies capable of producing net income are the best investments. Growth is nice but the ability to provide earnings to shareholders is more important in my mind. Fortunately, CleanSpark is quickly emerging as one such company. In the most recent quarter the company reported net income of $126.7 million.
The company is expected to report positive earnings per share in 2024 which should continue for the next several years. Revenues are also anticipated to more than double both this year and 2025.
Nvidia (NVDA)
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Nvidia’s (NASDAQ:NVDA) graphics processing units (GPUs) are the standard bearer when it comes to the complex computations necessary for artificial intelligence and machine learning. Until that changes, it will continue to be the biggest opportunity in AI stocks.
GPUs are also more easily designed for tasks including deep learning necessary for the continued development of artificial intelligence. That’s why Nvidia is simply the best hardware choice in AI. It produces the most powerful GPUs which are currently in high demand for data center applications.
Nvidia’s most certainly a data center driven opportunity at the moment. $22.6 billion of the company’s $26 billion in overall sales during the last quarter were attributable to data center purchases.
The big tech companies are engaged in a massive race to employ as many of those leading edge chips in their data centers. They are essentially commodifying AI and the more of the commodity they can purchase, the better.
On the date of publication, Alex Sirois 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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