2 millionaire-Maker Technology Stocks | The mad heterogeneous

Each investor wants to become (at least) a millionaire.

To help you get there, it’s a good idea to invest in growth actions, especially those that have long history of success and a set of Competitive advantages. It is also useful if the stock has an attractive evaluation, as this will allow the growth of the action thanks to a multiple expansion.

While your quest to achieve millionaire status will be influenced by your temporal horizon and your risk tolerance, two actions that can help you get there Mercadolibre (Meli -0.51%)) And Micron technology (Mu 0.73%)).

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1. Mercadolibre: the Latin American electronic commerce chief

Just like Amazon In the United States, Mercadolibre has set up an impressive set of interconnected companies, which gives it a competitive advantage in Latin America.

The main activities of the company are as a seller of direct electronic commerce and third -party electronic commercial market. He also has a large fintech company, Mercado Pago, which includes payments on his own electronic commerce platform, points of sale systems for brick and mortar retailers, credit cards and a loan platform. Mercadolibre makes deliveries of his electronic commerce orders through Envios Mercado, and he even has an asset management arm known as the Mercado Fondo.

Mercadolibre capitalizes on the great opportunity for electronic payment and digital payments in Latin America and continues to grow quickly. In the fourth quarter, income increased by 37%, or 96% on a neutral basis in foreign currency. This was motivated by a growth of 33% of the total payment volume to $ 59 million, and an 8% growth in the gross volume of goods (GMV), or the total value of the goods sold on its platform.

Its strengthening ecosystem has also aroused competitive advantages and leads to expansion of margins on net profit. In the fourth quarter, his operating income reached a record of $ 820 million, more than double compared to the quarter a year ago.

Mercadolibre still has a lot of room for growth in its main markets in Brazil, Mexico and Argentina, and there is a huge market in Latin America beyond these countries. He found a winning formula, and he is likely to continue to provide results for investors. Given its growth rate, the action is also negotiated with a reasonable assessment.

2. Micron technology: capitalize on a memory chip rebound

Micron is an integrated peripheral manufacturer (IDM) focused on memory fleas. This means that the company designs both its chips and makes them, which gives it more risks than a company that designs only fleas. Historically, Micron has been very cyclical because the price of memory chips can change quickly, but in the era of artificial intelligence (AI), the company enters a boom cycle and investors could collect the awards.

Micron is a partner close to NvidiaAnd, in fact, Nvidia is now its greatest customer, causing 13% of its income, because Nvidia is counting on its wide-band memory chips for its Blackwell platform, which should help give the company a rear wind in the construction of AI.

Revenues almost doubled in its last quarter to $ 8.7 billion, and profitability has also increased, the company declared an operating room by 25%. There is also clear evidence that Micron benefits from AI boom. The income from the data center jumped 400% from one year to the next and 40% sequentially in the first tax quarter. The data center and the networking segment now represent 55% of its income, which means that it should be an even higher engine of overall income growth.

The demand for memory chips will increase almost certainly because they are necessary for AI applications, which should stimulate business growth in the coming years. Meanwhile, the title resembles a good deal compared to most of its semiconductor peers, trading in a price / long-term concern ratio of less than 14, and the profits should spend next year.

While the price dynamics and the offer will continue to be fluid, Micron’s stock is in a good position to hover over the next year, given its valuation and rear winds in AI.