Investing with a long-term perspective means considering a company’s or stock’s long-term growth potential rather than short-term fluctuations in price. This approach can be helpful for investors looking to safeguard their investments against temporary economic declines or market volatility.
Microsoft and Advanced Micro Devices (AMD) are reliable growth stocks that have seen price dips during the sell-off. These companies are expected to experience substantial growth over the long term, despite any temporary setbacks. As we head into 2023, here are some stocks we believe are worth considering as potential investments.
Microsoft is a technology company that has seen significant growth in the past five years, with a stock value increase of approximately 180%. This growth could be due to the company’s strong market presence in various industries, including cloud computing, gaming, and digital advertising.
One of Microsoft’s key business segments is its cloud platform, Azure, which has a 21% share of the rapidly growing cloud computing market. In the first segment of the financial year 2023, the company’s intelligent cloud segment saw a 20% year-over-year increase in revenue, reaching $20.3 billion.
In addition, Microsoft plans to expand in the cloud industry by building more data centers in high-growth markets like Asia. Microsoft made strides in the digital advertising industry through its acquisition of Xandr and its exclusive ad supplier partnership with Netflix.
As a result, digital advertising could reach a market value of $786.2 billion by 2026. Microsoft is in an excellent position to take advantage of this growth due to its solid financials and history of success in new markets.
Advanced Micro Devices (AMD)
Advanced Micro Devices is a technology company specializing in designing and manufacturing computer processors and related technologies for the consumer and enterprise markets.
The company is known for its graphics processing units and gaming PC components. Still, it has a significant presence in the data center and console gaming industry. In 2022, the company saw strong growth in its data center and gaming revenues, but its stock price was affected by the overall decline in the PC market due to reduced consumer spending.
Despite this, AMD’s stock has performed well over the past five years, giving a return of almost 500%. AMD should continue to grow in strong-performing industries such as data centers and console gaming and may see a boost if consumer demand returns to the PC market.
In conclusion, Microsoft and Advanced Micro Devices (AMD) are both strong growth stocks for long-term investment. Both companies have demonstrated solid financial performance and a strong presence in various industries that may experience significant growth in the future.
While they may experience temporary setbacks or price dips, their long-term growth potential makes them worthwhile investments for those long-term investors.