How to Retire a Millionaire by Investing $100,000 in TSX Tech Stocks Today

These two of the best Canadian tech stocks could help you retire a millionaire if you act in time.

| More on:

If you start saving money early in life, you won’t find it very difficult to multiply your wealth by the time you retire. However, the ongoing market condition — where most high-growth TSX stocks have seen massive value erosion in the last year — could significantly increase your chances of becoming a millionaire by the time you retire if you act now.

Concerns about geopolitical tensions, high inflation, and a near-term recession have led to a massive crash in some high-flying tech stocks this year. If you invest roughly $100,000 in such cheap tech stocks now and hold them for at least a decade, you could easily retire a millionaire. In this article, I’ll highlight two such high-growth stocks that you can buy to retire super-rich.

Shopify stock

If you’ve followed the TSX tech sector in the last few years, most of you might find my first stock pick, Shopify (TSX:SHOP)(NYSE:SHOP), very obvious. To create an unbeatable stock portfolio to retire a millionaire, you could invest 50% of your $100,000 savings in SHOP stock today, as this fundamentally strong stock currently trades at a big bargain. The stock is hovering close to $42 per share with massive 76% year-to-date losses.

In 2020, the demand for Shopify’s e-commerce services surged significantly with the global pandemic-driven restrictions on physical activity. As a result, its total revenue jumped by nearly 86% YoY (year over year) that year, and its earnings jumped by 1,227% from a year ago. In 2021, its revenue and adjusted earnings rose by a solid 57% and 61% YoY, respectively. Now, the company expects its revenue growth rate in the ongoing year to be lower than 57%.

Honestly, this guidance of lower sales growth rate didn’t surprise me, as you can’t expect the COVID-driven demand surge to continue driving Shopify’s sales higher at an eye-popping rate forever. But many Shopify bears still use this argument to justify its massive year-to-date stock losses. However, instead of its guidance, I blame the recent big tech sector-wide correction for SHOP stock’s big losses in 2022, as its long-term fundamental outlook remains very strong. Given that, a 76% year-to-date drop in this high-growth stock could be a huge opportunity for investors to buy it cheap.

BlackBerry stock

Compared to Shopify, BlackBerry (TSX:BB)(NYSE:BB) has been a lesser-known high-growth stock in the last few years. But given its consistently rising presence in the automotive segment and efforts to benefit from futuristic auto industry trends, I find this tech stock really attractive for the long term. That’s why I call it the TSX tech sector’s hidden gem. BB stock currently trades at $7.43 per share with about 37% year-to-date losses.

Apart from the consistently rising popularity strength of its QNX operating system in the automotive industry, its upcoming IVY platform is likely to give BlackBerry an edge in providing advanced technological solutions to automakers with big electric and autonomous vehicle dreams. Moreover, the demand for BlackBerry’s enterprise cybersecurity solutions is also surging in the post-pandemic world amid growing remote work culture and higher adoption of digital commerce.

Given these factors, investors who want to retire a millionaire may want to invest the remaining 50% of their $100,000 stock portfolio in this cheap tech stock right now, as it has the potential to yield outstanding returns in the long run.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool has positions in and recommends Shopify. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Tech Stocks

Billionaires Are Dropping U.S. Tech Stocks and Buying This TSX Stock in Bulk

U.S. tech stocks are more volatile than ever, but this TSX stock could just be getting its wings back.

Read more »

dividend growth for passive income
Tech Stocks

The Smartest Growth Stock to Buy With $2,000 Right Now

Investing in quality TSX growth stocks such as MDA Space should help you generate outsized gains in 2025 and beyond.

Read more »

Tech Stocks

Top Canadian Stocks to Buy for Growth in 2025

There are a lot of growth stocks you can buy and hold for the long term to build a sizable…

Read more »

hand stacking money coins
Tech Stocks

Billionaires Are Selling Tesla Stock and Betting on This TSX Stock

Tesla stock has long been the one to beat, but after falling in share price, stability may be more key.

Read more »

chart reflected in eyeglass lenses
Tech Stocks

OpenText Stock: Down 27%, Buy Now for Pure Long-Term Perfection

OpenText stock may have dropped after earnings, but according to its CEO, future growth is just getting started.

Read more »

ETF chart stocks
Dividend Stocks

These ETFs Are My 2 Favourites to Buy for 2025

These two top ETFs may be going through some volatility right now, but both are due for huge returns in…

Read more »

A person uses and AI chat bot
Tech Stocks

Missed Out on Nvidia? My Favourite AI Stock to Buy and Hold

Its high growth potential, resilience to the emergence of low-cost LLMs, and low valuation make it a compelling stock in…

Read more »

Abstract Human Skull representing AI
Tech Stocks

1 Top Tech Stock to Invest in Canadian AI Stocks for Long-Term Gains

While many AI companies attract attention for high but speculative growth, this reliable AI stock is worth a look by…

Read more »