Two Good Tech Stocks

last updated on

Two Good Tech Stocks

2 Tech Stocks With Upside Potential

Technology just continues to become more and more integral in our daily lives with each passing day. Now with the arrival of AI, the tech sector is going through yet another boom.

Amidst all of this, there are two tech stocks that can help you benefit from this AI race. These stocks have strong earnings growth and are also trading at reasonable valuations.

Alphabet

Alphabet is the company behind Google and needs no introduction. Alphabet has been around for several decades and is an integral part of people's lives.

The top products from Alphabet are YouTube, Google Search, & Gmail, to name a few. There's a good chance that you also use one of these products in your daily live.

The forward P/E of Alphabet is around 26, which can look expensive to many investors. However, this valuation is completely reasonable as the Alphabet's earnings growth is expected to stay in double digits.

Alphabet is also a big player in AI now and has established a strong presence with Gemini and Veo 3 models. Right now, most of Alphabet's revenue is coming from advertisement but that could change as Alphabet is involved in a lot of different sectors.

Marvell Technology

The AI infrastructure buildout is in full boom and this has also increased the demand for switches, cables, and custom silicon.

This is the ideal opportunity for Marvell Technology as it makes these cables, switches, and other items. According to analysts, Marvell Technology's earnings growth will be 41% annually till FY2029.

The forward P/E of Marvell Technology is also around 23, which is reasonable when we look at other stocks in the tech sector.

The only risk for Marvell Technology is that the data center spending slows down. But, this shouldn't be much of a worry as the valuation of Marvell Technology is already fair.

But, if the AI spending continues to stay high, it can lead to a big payout for those who have bought the Marvell Technology shares.

Trending Stories