Three Tech Stocks with Clear Investment Opportunities at Present
Technology-driven market surges have fuelled the ongoing bull market, which is currently in its second year. Historically, bull markets last around five and a half years, so this sector still has plenty of room to grow.
Let's scrutinize three tech stocks that seem like smart investments in this market surge.
1. Nvidia
With unceasing computational power, Nvidia (NVDA -2.09%) remains an exceptional company to capitalize on this trend. Nvidia commands the market for graphics processing units (GPUs). Although initially engineered for enhancing video game and animation graphics, GPUs' extraordinary ability to outperform central processing units (CPUs) in task completion has resulted in their widespread use in artificial intelligence (AI).
Nvidia has carved out a significant competitive moat by being the pioneer in creating a software platform for programming GPUs beyond graphics rendering. This platform became the foundation for developers learning to program GPUs, and subsequently, Nvidia added AI-specific tools and libraries to further solidify its edge.
However, it's the exponential need for additional computing power for AI training that makes Nvidia an enticing investment. The first version of ChatGPT required 10,000 Nvidia GPUs, while newer AI models, like Meta Platform's Llama 4, will need 160,000. There's even talk of 1 million GPU clusters in the near future.
The ever-increasing demand for GPUs, coupled with its impressive track record, makes Nvidia an investment to consider.
2. Salesforce
If the future of AI revolves around software, Salesforce (CRM -0.96%) is in a powerful position. Its customer relationship management (CRM) platform has established it as a leader in front-office tasks. Over the years, it has expanded into other areas, such as automation, analytics, and employee communication, through acquisitions of Mulesoft, Tableau, and Slack.
Its most significant opportunity, however, lies in its autonomous AI agents, called Agentforce. Launched in October, Agentforce enables AI agents to interact, collect data, and perform tasks to achieve goals. On its early December earnings call, the company reported strong early adoption and had already secured 200 deals with the AI agents. With thousands of potential Agentforce deals in the pipeline, the upside potential is vast.
Agentforce is a usage-based product that costs $2 per conversation, so the growth potential is significant as it becomes more widespread. Salesforce projects having 1 billion AI agents deployed by the end of fiscal 2026 (January 2026).
Meanwhile, Salesforce recently released Agentforce 2.0, which includes a no-code platform for users to build their own tools and prebuilt agent skills. Agentforce 2.0 will also be able to execute tasks outside its CRM suite and across any app or workflow, and will be integrated into Slack.
With autonomous AI agents poised to be the next big AI development, Salesforce stock remains a strong play.
3. SentinelOne
Lagging behind in 2024, cybersecurity company SentinelOne (S -1.71%) still has an enticing opportunity ahead. The company's Singularity Platform uses AI to anticipate, monitor, and eradicate threats and is compatible with public, private, or hybrid cloud environments.
While it competes with CrowdStrike's Falcon platform, SentinelOne gained an opportunity after CrowdStrike's outage earlier this year, with a major Fortune 500 customer and several government agencies switching to its platform.
Moreover, the company is benefiting from the surge in demand for its Purple AI solution, which aids analysts in identifying complex security threats using just natural language prompts. SentinelOne claims it is the fastest-growing solution in its history.
Despite its lagging stock price in 2024, the company has demonstrated robust revenue growth, including a 28% increase in revenue last quarter. Furthermore, it trades at half the price of CrowdStrike on a forward price-to-sales (P/S) basis (7.0 times versus 18.8 times) despite similar revenue growth (28% for SentinelOne versus 29% for CrowdStrike last quarter).
However, the most significant opportunity for the company and its stock lies in the second half of 2025, when enterprise PC vendor Lenovo will start shipping its computers pre-installed with SentinelOne's Singularity Platform. Lenovo is the world's largest PC vendor, with a 25% market share, and sold approximately 59 million PCs in 2023. This marks a massive opportunity for a company the size of SentinelOne.
After observing the potential for technology companies in the current market surge, considering intelligent investments is crucial. In light of this, Nvidia's exceptional performance in the graphics processing unit (GPU) market, especially in the field of artificial intelligence, makes it an attractive investment option. With the increasing demand for GPUs for AI training, Nvidia's ability to stay at the forefront of this trend and its impressive track record make it a strong contender.
Furthermore, Salesforce's position as a leader in customer relationship management (CRM) and its expansion into other areas such as automation, analytics, and employee communication, coupled with the success of its autonomous AI agents, make it a compelling investment opportunity. Salesforce's strategic expansion into the field of AI Agents and its projected growth make it a strong play in the industry.
