These companies are on promising growth paths that are too good to ignore.
The tech industry has made many millionaires, with the Nasdaq-100 Technology Sector up 362% since 2014. The index has significantly outperformed the S&P 500 index, which rose 179% in the same period. Advances in technology consistently push the market forward, with regular breakthroughs requiring consumers and businesses to update their hardware and software.
As a result, it's no surprise that four of the five most valuable companies in the world are tech leaders, active in industries such as consumer products, productivity software, chip design, and digital advertising. Burgeoning sectors like artificial intelligence (AI) and cloud computing are currently some of the industry's biggest growth drivers, making their respective market leaders attractive investments.
So, here are two millionaire-maker technology stocks to buy this August before it's too late.
1. Nvidia
After more than a year of soaring share prices and glowing quarterly earnings, it's probably not surprising that Nvidia (NVDA -0.58%) is on this list. The company's stock is up 132% since last August. Meanwhile, quarterly operating income and free cash flow have climbed 112% and 62%, expanding its cash reserves.
A tech sell-off over the last month brought on by fears of a recession has seen Nvidia's stock fall 16%. However, consistent earnings growth and a dominant role in tech means the dip only strengthens a bullish argument for its stock, creating an opportunity to invest at a reduced price.
In the first quarter of its fiscal 2025, Nvidia posted revenue gains of 262% year over year while operating income soared 492%. The company benefited from significant growth in its data center segment, reflecting a boost in AI graphics processing unit (GPU) sales. Total revenue for the quarter outperformed Wall Street forecasts by more than $1 billion.
Stellar earnings have become a trend for Nvidia, beating expectations for at least the last four quarters. The company will post its Q2 2025 results on Aug. 28 and will likely follow the recent growth trajectory after glowing results from its chip rival, Advanced Micro Devices, last month. AMD has the second-largest market share in AI chips after Nvidia and delivered a record 115% year-over-year rise in revenue in its data center segment in Q2 2024.
AMD's win proves AI still has much to offer tech companies. And as a leader in the industry with an estimated 80% market share in AI GPUs, Nvidia is a millionaire-maker stock worth buying right now.
Nvidia's price-to-earnings ratio (P/E) is high at 62, yet well below its five-year average of 80. The company's stock rose more than 2,000% with that average, making it a value compared to Nvidia's potential.
2. Amazon
Amazon (AMZN 1.00%) has delivered impressive gains over the years, with its stock up nearly 1,000% since 2014. Monster success in e-commerce and cloud computing with Amazon Web Services (AWS) has seen its operating income and free cash flow skyrocket by 20,000% and 2,000%, respectively, in that time. In fact, the company's free cash flow hit more than $48 billion this year, with some analysts speculating that it could be gearing up to release its first dividend.
Thanks to its thoroughly diverse business model, the retail giant has become one of the best ways to invest in tech. Consistent reinvestment over the years has seen Amazon diversify its revenue streams and extend its reach with solid positions in online retail, AI, grocery, video streaming, digital advertising, and more.
Amazon's Q2 2024 earnings reflected its diversified business. Revenue increased by 10% year over year after mediocre growth in its retail business. However, total operating income more than doubled from the previous year to $14.6 billion after considerable gains from AWS.
The company enjoyed impressive gains in its digital businesses during the quarter, with AWS sales climbing 19% year over year and revenue from advertising services increasing by 20%. Amazon's role in tech is swiftly expanding and has become a larger part of its business over the years, exposing the company to markets with attractive profit margins. AWS has granted the company a powerful position in AI. Meanwhile, its streaming service Prime Video gives it a powerful advertising tool and a new growth catalyst.
Like Nvidia, Amazon's P/E of 40 is considerably lower than its five-year average of 89. The company has made many millionaires in the past but likely isn't done yet, with its stock a compelling option this year.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, and Nvidia. The Motley Fool has a disclosure policy.
