Published - August 2nd, 2023 @ 4:20 PM (GMT+2 )
As the financial market continually transforms, investors are perennially on the hunt for the next lucrative venture. Growth stocks frequently emerge as enticing investment prospects, offering substantial potential for substantial long-term yields. In this piece, we'll delve into several standout growth stocks to monitor in August 2023 and beyond, and discuss their potential merits for inclusion in your investment portfolio.
Shopify (SHOP): A Rising E-Commerce Powerhouse
Shopify (NYSE:SHOP), a Canadian e-commerce giant, has become a compelling investment opportunity in August 2023. Trading at $67.45, the stock has surged 89.04% from its opening price of $35.68 this year. With a market cap of 86.27B USD, Shopify's growth is attributed to its robust platform that enables businesses of all sizes to create online stores.
The company's subscription-based model, starting at $39 per month, along with its payment processing system, Shopify Payments, has contributed to $5.9 billion in revenue over the past four quarters.
Shopify's Q2 earnings are expected to gain from an expanding merchant base, reflecting its strategic integrations that boost prospects. Despite being second only to Amazon in e-commerce sales, Shopify's potential is vast, with less than 15% of retail sales in the U.S. being online.
The stock's recent price is still below highs, making it an attractive long-term opportunity, especially with strategies like Iron condors and spreads setting up well for earnings play. YTD growth stands at 89.14%, positioning Shopify as a stock to watch in the evolving e-commerce landscape.
NVIDIA (NVDA): A Dominant Force in AI and Gaming
NVIDIA Corp (NASDAQ:NVDA), a leading technology company known for its GPUs and AI platforms, has seen remarkable growth in 2023. Trading at $465.07, the stock has risen 224.88% YTD, with a market cap of 86.27B USD. Since its opening price of $143.15 in 2023, NVIDIA has surged 220.68%, reflecting its dominance in gaming, film production, and the automotive industry.
The company's earnings have been strong, with positive net income in the last five quarterly reports. NVIDIA's expansion into AI chips, automated electric cars, cloud gaming, and metaverse applications has driven growth. In the quarter ended April 30, the company earned $1.09 a share on sales of $7.19 billion, outpacing Wall Street's expectations.
Investors eyeing NVIDIA's options market in August and September will find it very liquid and tight, with defined risk strategies likely being the best option. With the next quarterly report expected on Aug. 23, NVIDIA's stock remains one to watch, backed by booming chip sales and a promising future in various growth areas.
AMD's Strategic Growth Through AI Initiatives
Advanced Micro Devices (NASDAQ:AMD), a global semiconductor leader, is trading at $117.60, marking an 83.69% YTD growth. The company, known for its Ryzen, Threadripper, and EPYC CPUs, as well as Radeon GPUs, competes with giants like Intel and Nvidia.
Despite a decline in Q2 revenue by 18% to $5.36 billion and a 44% fall in adjusted net income to $948 million, AMD is forging ahead with optimism. The company's focus on AI-powered growth, including the planned launch of MI300 artificial intelligence chips and strategic expansion in China's market, underscores AMD's innovative direction. The company expects 2023 sales in its data center business to exceed $6.04 billion, with Q3 sales projected between $875 million and $885 million.
With AMD releasing its Q2 2023 financial results on August 1, 2023, and the options market in August and September offering wide opportunities, AMD's stock remains an attractive prospect for investors eyeing growth through AI initiatives.
Archer Aviation's Strategic Partnerships and Growth
Archer Aviation Inc. (NYSE:ACHR), a leader in electric vertical takeoff and landing (eVTOL) aircraft, has been making significant strides in the aerospace and defence sector. With a current market cap of 1.62B USD and a stock price of $6.55, Archer has seen a year-to-date growth of +239.38%.
The company's recent partnership with the U.S. Air Force, involving a historic $142 million investment, highlights its commitment to innovation and military applications.
Archer's Midnight aircraft, with vertical takeoff and landing capabilities, is expected to provide a safer, quieter, and more cost-effective alternative to traditional helicopters. Analysts have given ACHR a "Strong Buy" rating, with a 12-month price forecast of $21.10, indicating a potential upside of 222.14%.
The company is set to report its Q2 2023 financial results on August 10, 2023. As Archer continues to expand its partnerships and technological advancements, it stands as a stock to watch in August 2023.
Nikola Corp's Hydrogen Ambitions Fuel Stock Surge
Nikola Corp (NASDAQ:NKLA), an electric vehicle maker, has seen a remarkable turnaround in its stock, currently priced at $3.12, with a market cap of 2.24B USD. Over the past month, the stock has soared by 127.74%, driven by significant developments in the company's hydrogen infrastructure.
Nikola recently won an additional $16.3 million grant, taking its total awards to $58.2 million, to support seven hydrogen refuelling stations under its Hyla brand across California.
This comes on the heels of a deal to sell electric trucks to J.B. Hunt Transport Services Inc. and an agreement to sell hydrogen fuel cell EVs to BayoTech Inc. The company's focus on building an integrated hydrogen ecosystem and the anticipation of impressive delivery numbers in the upcoming Q2 earnings report on August 4 have reignited investor interest. Nikola's strategic moves and recent successes make it a stock to watch in August 2023.
These five companies showcase the dynamism and innovation driving the market in 2023. Shopify's robust e-commerce platform, NVIDIA's growth in AI and gaming, AMD's focus on AI-powered growth, Archer Aviation's advancements in eVTOL aircraft, and Nikola's commitment to hydrogen infrastructure highlight the strategic directions each company is taking. With positive growth trends, strategic partnerships, and promising forecasts, these stocks offer a blend of opportunities for investors. Their varied yet strong positions in their respective fields make them stocks to watch in August 2023.
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