Title: Score a Great Deal: Two Stocks Under $500 to Consider for 2024 and Beyond
In 2024, the U.S. stock market set impressive records, with the S&P 500 surpassing the 6,000-point mark in November. Tech stocks played a significant role in this growth, but some tech giants like Advanced Micro Devices (AMD) and Alphabet are surprisingly undervalued and offer excellent growth potential, even if you've got just $500 to spare.
1. Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD) demonstrated healthy financials during Q3 of 2024, with revenue and earnings hitting targets. However, the company's gaming and embedded segments underperformed, and analysts questioned its progress in AI compared to Nvidia. Despite these concerns, AMD's data center segment is thriving, contributing to 52% of the company's revenue. Major cloud service providers like Microsoft and Meta Platforms (Facebook) are embracing AMD's EPYC processors, which power their cloud-native services and social media platforms. AMD is also making headway in the GPU market, cementing its position as severe competition for Nvidia. This, combined with the surging AI accelerator market, poises AMD for impressive earnings growth in the coming years.
2. Alphabet
Alphabet's stock took a tumble in 2024 due to antitrust concerns, with a federal judge ruling Google's search practices monopolistic. The DOJ wants Google to divest parts of its business, like Chrome and Android. Yet, Alphabet is prepared for an appeal and might beemaided by the current political climate, increasing the likelihood of a settlement rather than a breakup. Regardless, Alphabet continues to post healthy revenue and EPS numbers, with Google Search leading the global search engine market with an impressive 89.9% market share. Google Cloud grew by 35% and is now integral to the company's AI infrastructure business. Alphabet is also working on its AI-powered Gemini platform and focusing on AI-powered chatbots and search engines, ensuring its dominance in search and cloud computing markets.
Both tech giants offer promising growth opportunities, even in a crowded market. AMD's data center and AI progress are enhancing the company's revenue, while Alphabet's stronghold in search and cloud computing ensures steady earnings. With the right research and analysis, investing in these two underpriced tech titans could reap substantial rewards in 2025.
In light of AMD's strong performance in the data center segment and its ability to compete with Nvidia in the GPU market, investing in this undervalued tech giant could yield significant returns, even with a modest initial investment of $500.
Despite the antitrust challenges faced by Alphabet, its robust revenue and EPS numbers, coupled with its dominance in the global search engine market and growing involvement in AI-powered technologies, make it an attractive option for finance-savvy investors looking to capitalize on its promising growth potential.
