3 No-Brainer Next-Gen Technology Stocks to Buy Right Now
By The Motley Fool
As investors seek to position themselves for the future, technology stocks continue to be at the forefront of growth opportunities. Although it’s generally prudent to maintain a diversified portfolio, tech companies have consistently outperformed the broader market, driving transformational changes across industries since the late 1990s tech revolution. The challenge lies in pinpointing the next wave of innovations and identifying the companies poised to lead that charge.
Here are three compelling next-generation technology stocks that offer promising growth potential:
1. Navitas Semiconductor (NASDAQ: NVTS)
While Nvidia (NVDA) has dominated the semiconductor spotlight since the AI boom surged in 2023, market leadership in tech sectors is often transient. Newcomers with innovative approaches can disrupt existing narratives—and Navitas Semiconductor is one such player.
Navitas does not currently produce AI-processing chips directly but focuses on advancing power-efficient circuitry using cutting-edge materials like silicon carbide and gallium nitride. These materials have significantly higher power efficiency compared to traditional silicon-based components—silicon carbide offers about 20% better efficiency, while gallium nitride can improve efficiency by up to 50%. These benefits span applications from smartphones and electric vehicles to utility-scale power grids and battery charging systems—and yes, AI data centers could reap considerable benefits as well.
Despite proven technology, adoption requires substantial redesigns in existing manufacturing processes, which can be costly and slow. However, the trend toward minimizing power consumption is pushing industries to embrace these next-generation materials. Global Market Insights projects a robust 25% annual growth rate in the combined semiconductor materials market through 2032. Although Navitas Semiconductor has yet to turn a profit, patient investors could be rewarded as the company capitalizes on this growing demand for energy-efficient semiconductors.
2. Nokia (NYSE: NOK)
Once a global powerhouse in mobile phones, Nokia has since transitioned into a key player in networking and connectivity equipment—a business expected to remain central to its operations for years. Recently, Nokia made headlines with a strategic partnership with Nvidia to pioneer AI-powered 6G wireless networks using Nvidia’s new Aerial Radio Access Network (RAN) computing platform, known as ARC.
While the technical details may sound complex, this collaboration aims to integrate AI directly into next-generation wireless networks. The goal is to seamlessly connect vast numbers of devices—phones, sensors, cameras, robots, and autonomous vehicles—enabling enhanced, efficient data transmission well beyond current 5G capabilities.
Although the AI-driven 6G ecosystem is still in early development, this partnership positions Nokia to benefit significantly from the forthcoming wireless revolution. For investors, Nokia’s involvement in this cutting-edge initiative could translate into notable growth as AI and connectivity technologies merge more deeply.
3. Advanced Micro Devices (NASDAQ: AMD)
AMD stands out as a major competitor to Nvidia in the GPU market and is recognized as the world’s second-largest CPU manufacturer, trailing only Intel. Despite some challenges over the years, recent data indicates that the company is overcoming these headwinds.
For instance, AMD reported a 22% year-over-year increase in data center revenue for the third quarter, driven mainly by its Instinct MI350 GPU series designed for demanding AI inference workloads. Moreover, AMD’s new Ryzen Embedded P100 processor delivers 35% faster performance compared to prior models and rivals, processing an impressive 50 trillion operations per second. This level of performance has drawn attention across various industries increasingly reliant on powerful computing solutions.
With these advancements, AMD presents a compelling option for investors looking to capitalize on next-generation technology trends.
Final Thoughts
Technology’s transformative impact on the global economy is undeniable, and the race for innovation continues unabated. Navitas Semiconductor’s power-efficient materials, Nokia’s AI-driven connectivity ventures, and AMD’s high-performance processors all represent leading edges of this ongoing revolution.
While no investment comes without risk, these three companies offer intriguing prospects for growth-minded investors aiming to harness the potential of next-gen technologies. As always, consider your investment horizon, risk tolerance, and portfolio diversification strategy before making decisions.
Disclosure: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions.
