The tech industry made many millionaires, with the Nasdaq-100 Technology Sector index up 385% over the last decade. The market earned a reputation for offering investors consistent gains over the long term as it benefits from innovative companies that never cease to drive their technology forward.
Meanwhile, budding sectors like artificial intelligence (AI), cloud computing, self-driving cars, and virtual/augmented reality (VR/AR) have massive growth potential over the long term and are likely to continue fueling the tech market. As a result, it could be worth dedicating a portion of your portfolio to the tech companies active in these industries.
As the world’s two most valuable companies by market cap, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are compelling options. These tech giants have long growth histories and heavily invest in some of the fastest-growing areas of technology and are two top tech stocks that could make you a millionaire.
Shares in Microsoft tumbled 4% the week of July 15 due to a tech sell-off that brought down dozens of stocks. Microsoft’s declining share price was brought down further by a CrowdStrike outage on July 19 that took down IT systems globally.
Thousands of Windows PCs, which are critical to the workflow of many businesses, were affected. The outage also impacted consumers’ access to Microsoft 365 services, forcing many companies to halt work for the day.
However, the dip in Microsoft’s stocks appears to be an overreaction, compared to its potential. The company built itself into one of the biggest forces in tech, with growth catalysts throughout the industry.
Microsoft’s main strength is software, which it has used to achieve prominence in multiple sectors, from operating systems to productivity services, cloud computing, gaming, and AI. For instance, Windows accounts for over 70% of the operating-system market. Its Office suite has become the gold standard in productivity software, with Microsoft 365 amassing 345 million subscribers.
The diversification of Microsoft’s business has led to consistent earnings growth. In the third quarter of fiscal 2024, the tech giant posted revenue growth of 17% year over year, with operating income soaring 23%. AI was a major growth driver during the quarter, boosting Microsoft’s productivity and cloud segments, thanks to generative updates. The company also enjoyed a 17% jump in its more personal computing segment, reflecting a 51% rise in Xbox content sales.
Microsoft’s stock rose 456,500% since the company went public nearly 50 years ago, undoubtedly creating more than a few millionaires. However, the company’s history of innovation and reinvestment in its business suggests its stock is still nowhere near hitting its ceiling and is worth considering after a recent dip.
Apple’s stock hasn’t been unscathed by investor pullback in the tech market, with its share price also down 4% since July 15. However, the company has some exciting months ahead that could boost its stock, from reporting its Q3 2024 earnings on Aug. 1 and unveiling its next iPhone in September.
Multiple reports in recent months have hinted that Apple could post improved product sales in its coming earnings release. Sales in Apple’s third-largest market, China, fell 8% year over year in Q2 2024 amid increased competition from domestic rivals.
Apple responded to the decline with a series of discounts in the region, which appear to be paying off. According to a Reuters report, iPhone shipments in China increased 52% in April and 40% in May.
Then in mid-July, Bloomberg reported that sales in India surged 33% in the 12 months through March, jumping from $6 billion to nearly $8 billion. iPhones accounted for more than half of those sales as Apple attempts to gain market share in the Android-dominated country.
Data from IDC also revealed Apple saw a 21% rise in Mac shipments in Q2 2023 as a recovery in the PC market spurs sales.
Boosts in product sales are promising, considering Apple has yet to launch Apple Intelligence, an AI platform that will bring generative features across its product lineup. Apple Intelligence is slated for a Fall release, just in time for the debut of its latest iPhone in September. The company hopes its AI offerings will trigger an upgrading frenzy among consumers as the generative features will only be available on newer devices.
Apple has hit some roadblocks over the last year but appears to be back on a growth path. Despite a recent dip, its stock is up 35% in the last three months and will likely continue delivering gains over the long term as it expands its reach and develops its AI technology. As a result, now is an excellent time to invest in this millionaire-maker stock before it’s too late.
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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, CrowdStrike, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
2 Top Tech Stocks That Could Make You a Millionaire was originally published by The Motley Fool
