The Best Stocks to Invest $1,000 In Right Now

Discover two promising stocks that could turn your $1,000 investment into a significant return

Investing in the stock market can be a lucrative endeavor, even with a modest sum of $1,000. With the right investment choices and a long-term perspective, it’s possible for that amount to grow into a substantial return. As the artificial intelligence (AI) bull market gains momentum and the stock market continues to reach new heights, now is an opportune time to explore potential investments. In this article, we will highlight two stocks that show promising growth potential and could be excellent options for investors looking to put their $1,000 to work.

Broadcom: A long-term AI winner

Chip stock Broadcom (NASDAQ: AVGO) may not have received as much attention as its peers Nvidia or Advanced Micro Devices in the AI race, but it has significant potential. While the company’s recent results have been modest, it specializes in networking and connectivity solutions such as routers, switches, and network adapters, which are expected to play a crucial role in the AI boom.

In the most recent quarter, Broadcom reported a 4% year-over-year revenue growth to $9.3 billion. However, management has indicated that demand is building for networking components for generative AI. In the fiscal 2023 fourth quarter, generative AI revenue, including ethernet solutions and custom AI accelerators, accounted for close to $1.5 billion in revenue, or about 20% of its semiconductor revenue. Looking ahead to fiscal 2024, the company anticipates networking revenue growth to accelerate to 30%, with generative AI representing over 25% of semiconductor revenue.

Broadcom’s profitability is another positive aspect, with a 65% margin based on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter. Additionally, the recent acquisition of VMWare, a maker of virtualization software, is expected to boost Broadcom’s growth this year. With a history of outperforming the market, Broadcom is a solid choice for investors seeking long-term growth potential.

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The Trade Desk: Leading the digital advertising transition

While AI dominates the stock market’s growth trends, digital advertising has also experienced significant expansion. The Trade Desk (NASDAQ: TTD), the leading independent ad tech platform, is well-positioned to capitalize on this growth. After a slowdown during the 2022 bear market, digital ad spending is showing signs of resurgence, with Alphabet and Meta Platforms reporting accelerating revenue growth.

The Trade Desk’s Unified ID 2.0 (UID2) protocol is the frontrunner to replace third-party cookies on Google Chrome, which are expected to disappear by the second half of this year. The company has also launched its AI platform, Kokai, which enhances measurement data, user interface, and return on investment by utilizing deep learning algorithms in the digital media buying process. While Kokai’s new features will be rolled out this year, Trade Desk has already demonstrated strong growth during a challenging period in the industry.

Despite weak guidance in its third-quarter earnings report, Trade Desk’s stock is trading at a discount, making it an attractive investment opportunity. With its positioning in the digital advertising industry and expectations for a robust 2024, Trade Desk is poised for continued growth.

Conclusion: Investing $1,000 in the stock market can yield substantial returns if the right stocks are chosen. Broadcom, with its focus on networking and connectivity solutions for the AI boom, and The Trade Desk, the leading independent ad tech platform in the digital advertising industry, both offer promising growth potential. As the AI bull market gains momentum and digital ad spending rebounds, these stocks could be excellent choices for investors looking to turn their $1,000 investment into a significant return.

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