Spring is in full bloom, and while this time of year often brings to mind flowers and itchy eyes, it’s also a great time to bolster your portfolio with strong tech stocks.
like clockwork, Apple (A.P.L -0.03%) It hosts the Worldwide Developers Conference (WWDC) every June. A company’s major influence in technology is that the announcements it makes at the event are often indicative of where the industry as a whole is headed. This year, virtual/augmented reality (VR/AR) is expected to be a big part of WWDC, so it might be a good idea to consider investing in the market.
Moreover, the artificial intelligence (AI) market is growing, since the beginning of the year, the related shares have been increasing significantly. Companies love it Advanced Micro Devices (AMD -5.64%) And Microsoft (MSFT -0.85%) They stand to gain a lot from the industry’s growth, making their stocks attractive choices.
Here are three top tech stocks to buy in June.
1. Advanced Micro Devices
AMD shares have risen as much as 94% since January 1, entirely on AI prospects. Last November, OpenAI launched its advanced chatbot ChatGPT, which wowed the world with its ability to generate human-like speech based on questions. The program’s success has led countless companies to pivot their businesses toward AI advancements, with AMD well-positioned to offer chips to the entire market.
AMD manufactures the hardware necessary to run and develop AI software, including central processing units (CPUs), graphics processing units (GPUs), and data processing units (DPUs). The company’s chips power a variety of devices and platforms, including many gaming consoles and cloud services such as Microsoft Azure. AlphabetGoogle Cloud and Oracle. The cloud industry is becoming one of the biggest innovators of AI technology, which bodes well for AMD’s future.
The argument for AMD stock is made even stronger by the fact that it is currently trading at a better value. NiveaThe company’s biggest competitor in AI. As of this writing, AMD’s forward price-to-earnings ratio (P/E) of 43 is high, but it’s a better buy compared to Nvidia’s forward P/E of 52.
ADD shares may seem expensive, but the prospect suggests it will offer big returns to patient investors.
Apple is predicted to launch its first VR/AR headset at WWDC, marking the company’s first expansion into an entirely new product category since entering the smartwatch space with the Apple Watch in 2015.
While entering a new market can bring uncertainty and uncertainty for some companies, Apple has a unique history of achieving great success when doing so in the past. While there were other tech companies dominating these markets before Apple entered the picture, the iPhone maker rose to the top of smartphones, headphones, tablets and wearables. As a result, investors are excited that the company plans to release a VR/AR headset this month.
Meta And Sony They currently dominate the VR/AR market with their respective headsets. While these companies have had some success in gaming, meta has had a particularly hard time convincing consumers to adopt the technology for other uses.
Meanwhile, Apple’s high brand loyalty has led to mass adoption of several technologies after releasing its own opinion on a device. Apple may be just what the industry needs to take the next step.
Apple stock is up 277 percent in the past five years alone, making it an even more attractive safe buy ahead of WWDC this month.
As OpenAI’s biggest backer after investing $11 billion in the startup since 2019, Microsoft is an attractive way to invest on the AI software side. The company’s partnership with OpenAI has allowed it to integrate AI into its products, including office programs such as Word and Excel, Azure and the search engine Bing. As such, Microsoft is poised to become the go-to destination for businesses and consumers looking for AI services.
Moreover, Microsoft has confirmed its commitment to AI development by supporting AMD in its AI chip expansion. According to a May 4 Bloomberg report, Microsoft is providing financial and engineering resources to boost AMD’s AI efforts and create an alternative to Nvidia. The partnership could be a strategic move for Microsoft to leapfrog its competitors. Amazon And Alphabet is waiting for chips designed for the efficiency of its own AI services.
In addition to artificial intelligence, Microsoft has a completely diversified business that has allowed it to gain significant market share in productivity software, gaming, cloud computing, operating systems, and more. The stock of this species has increased by about 850% in the last decade. Because of this, Microsoft is buying at any time, including this month.
Randy Zuckerberg, former director of market development and Facebook spokesperson and sister of Meta Platforms CEO Mark Zuckerberg, is a member of the Motley Fool’s board of directors. John McKee, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the Motley Fool’s board of directors. Susan Frey, an executive at Alphabet, is a member of the Motley Fool’s board of directors. Danny Cook has no position in the mentioned stocks. He has a spot in the Motley Fool and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Meta Platforms and Microsoft. The Motley Fool has a disclosure policy.