I Got Rich Off Apple: 2 More Tech Companies To Invest In This Year

Knowing what to invest in isn’t easy. If you’re thinking about getting into the stock market, you may want to diversify your portfolio to lessen the amount of risk you have to deal with and maximize those returns. But the way you go about it can vary based on your risk tolerance, financial situation and personal goals.

For some people, tech is the way to go. For one individual, Edward Corona, a trader and publisher at The Options Oracle , investing in Apple (AAPL) has proven rather lucrative.

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Here’s a bit about Corona, why he chose Apple and two other tech companies he believes could be good investment options .

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Investing In Apple: A Game Changer

Corona said he’s been trading and investing for more than three decades now. About a year ago, he started The Options Oracle, a Substack newsletter where he shares his strategies and insights with others.

As for his journey investing in Apple, he said, “Apple has been a game changer for many, including myself. As an options trader, AAPL has been and continues to be like a printing press for me and my subscribers, consistently offering optimal technical setups that have led to solid returns.”

He added that he’s been trading Apple stock for a long time as well — and for good reason.

“I’ve been trading Apple for years, drawn to it because of its strong fundamentals and the consistent technical patterns it offers,” he said. “It’s been a reliable stock for generating returns through options strategies, particularly with the way it reacts to market conditions.”

Part of what makes Apple a solid option is its recent — and ongoing — innovations and product launches. On top of that, it’s had strong earnings reports, which have led to greater investor confidence and have bolstered the stock even more.

Plus, even in the face of economic changes, Apple has proven itself time and time again as a company with strong fundamentals and the ability to weather what may come.

According to MarketWatch data, Apple is up 14.33% this year (from January through the first part of September). It’s also up 6.26% over the past three months. If you’d invested $10,000 two decades ago, you’d have nearly $5 million today (assuming you’d reinvested any dividends over that period).

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There Are Other Tech Giants To Watch Out For

Investing in Apple has been a game changer for many, but it’s not the only tech company to consider.

“As for other tech companies, I believe Microsoft and Nvidia are worth watching this year,” Corona said. “Microsoft’s dominance in cloud computing and AI gives it a strong growth trajectory, while Nvidia’s leadership in AI hardware and gaming makes it a compelling investment, especially as AI continues to expand.”

While there are never any guarantees, here’s a bit more about these two companies.

Nvidia (NVDA)

Even if you don’t know much about the stock market or tech, you’ve probably heard the name Nvidia once or twice. Nvidia’s revenue for fiscal 2024 was about $61 billion, a 126% increase from the previous fiscal year.

Nvidia stock has seen some radical growth in the past five years too. Since 2019, it’s risen by over 2,000%. If you’d purchased just $100 worth of Nvidia stock five years ago, it’d be worth more than $2,000 today. If you’ve invested $1,000, it’d be worth more than $20,000.

There are quite a few reasons Nvidia’s grown so rapidly. Among them is, as Corona said, its advancements in AI hardware and gaming. It’s also a leader when it comes to the graphic processing units (GPUs) found in data centers, personal computers and the like.

Even if Nvidia doesn’t see the same kind of growth in the coming half a decade or so, chances are it could continue to rise — though only time will truly tell.

Microsoft (MSFT)

Similarly, Microsoft is another company to watch this year and beyond. In July of this year, Microsoft stock reached an all-time high closing price of $466.73. Half a decade ago in July, it was trading around $132. Despite Microsoft having a few dips, as stocks often do, that’s some significant growth.

In the past 10 years, Microsoft has risen by nearly 800%. As Corona said, part of what’s contributed to Microsoft’s success over the years is its leadership in cloud computing and AI. While the future remains to be seen, Microsoft’s long-term resilience and ability to shift and meet market demands could be a good sign for investors going forward.

Choosing a Company To Invest In

Whether you choose to invest in tech or something else, your investment journey is going to be uniquely your own. That said, here are a few tips when choosing a company to invest in for your future.

• Do your research to make sure you truly understand the company you’re investing in, what products and services it offers, and the industry as a whole.
• Look over its financial statements and performance over the years to determine its growth potential and overall financial health.
• Evaluate the company’s net income growth and revenue over the years, as well as that of its competitors, and make sure it’s poised for continued growth.
• Research industry trends and anything else that might impact the company’s performance and your potential returns.
• Use valuation metrics — like the current price-to-earnings ratio and price-to-book ratio — to determine whether or not the company’s valuation is reasonably priced.

If you’re not sure what companies to invest in, you can also speak with a professional to guide you along the way.

This article originally appeared on GOBankingRates.com : I Got Rich Off Apple: 2 More Tech Companies To Invest In This Year