IONQ - 3 Next-Gen Tech Stocks to Buy With Explosive Upside Potential
2023-06-26 05:37:50 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Multiple types of new technologies are changing our world and the nature of work. Vehicles are driving themselves, computers are writing essays and many new varieties of drugs and medical devices are being created. Going forward, of course, these systems will only become more advanced and capable. For investors, the top next-gen tech stocks developing and benefiting from these new technologies can bring huge amounts of profits.
That’s especially true right now because many of these firms have extremely low valuations due to way overdone worries about the U.S. economy and interest rates. Here are three of the top next-gen tech stocks to buy for long-term investors.
IonQ (IONQ)
IonQ (NYSE: IONQ ) markets hardware for quantum computing. According to IBM (NYSE: IBM ), “Quantum computing is a rapidly-emerging technology that harnesses the laws of quantum mechanics to solve problems too complex for classical computers.” While Caltech reports that the technology “will improve our understanding of physics and enhance the development of many items.”
Encouragingly, IonQ has received an investment from the major Japanese investor, Softbank , somewhat validating IonQ’s technology and offerings. Moreover, on June 22, IonQ raised its 2023 bookings growth guidance by 25% to a range of $45 million to $55 million. Also importantly, the firm noted that, “at the midpoint of the bookings guidance, it is expecting a 100% growth compared to last year’s bookings of $24.5 million.”
The company’s current market capitalization of $1.9 billion far understates its long-term potential.
Aurora Innovation (AUR)
Aurora Innovation (NASDAQ: AUR ) has developed systems which, using hardware and software, enable trucks to drive autonomously along pre-set routes. Among the large trucking companies that have been trialing the company’s offerings for many months are FedEx (NYSE: FDX ) and Uber’s (NYSE: UBER ) Uber Freight . Very encouragingly, both of the firms have expended their trials with Aurora.
Moreover, the company’s product is working well, as all of its features have now been implemented. And arguably more importantly, “96% of commercially-representative miles driven between launch terminals did not necessitate on-site support.” Given the huge shortage of truckers in the U.S., that should be more than sufficient for AUR to convince many firms to buy and widely utilize its system.
Also noteworthy is that investment bank Canaccord Genuity recently started coverage of AUR with a $5 price target and a “buy” rating. The firm is upbeat about the company’s growth outlook.
The company’s market capitalization of $2.4 billion far understates its long-term potential.
Dynatrace (DT)
Dynatrace (NYSE: DT ) “ offers tools to help companies deal with the growing complexity of cloud computing.” Using artificial intelligence ( AI ), it allows companies to both more effectively monitor and secure their cloud networks.
Given the increased proliferation of cloud computing, DT’s total addressable market should soar a great deal. Supporting that thesis, its top line jumped 29% in its fiscal year that ended in March . Moreover, its bottom line soared 82% year-over-year last quarter.
Further, by harnessing the tremendous power of AI, Dynatrace is likely to enable its customers to save money by hiring many fewer IT professionals. Investor’s Business Daily gives DT its highest possible Composite Rating of 99, along with a Relative Strength Rating of 91, showing that many large investors have been accumulating the stock in the last year.
Thanks to all of the company’s positive attributes, it’s one of the best high growth tech stocks to buy right now.
On the date of publication, Larry Ramer has held a long-term position in AUR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
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