There are a lot of great stocks out there to help you reach your goal of a comfortable retirement. Whether you have plans to retire in 10, 20, or even 35 years, investors shouldn’t be too rattled by the day-to-day fluctuations or seek to find a reason behind a market’s upbeat or downbeat mood.
You see, Mr. Market is going to be difficult to predict and overreactive to every little bit of news that comes flowing down the pipeline. Instead of searching for reasons to hit that sell button, new investors may wish to determine if what the market is rattled about is just noise. If it is just noise, investors may wish to do some buying to get slightly better prices on their favourite companies.
The first week of 2024 was quite choppy and perhaps a tad negative. The finish to 2023 was quite remarkable, after all. The second week has been calmer, but don’t let this week’s strong start have you put your guard down. Valuations still matters (perhaps now more than ever!), even as the seemingly expensive technology companies lead the upward charge once again.
Can 2023’s hot stocks heat up further in 2024?
Though we’re sure to hear more about a rotation to value (from growth) or a broadening out of the stock market’s winners, I’d not be afraid to punch my ticket for stocks that are “working” in this environment. That means growth companies which have the means to increase sales and earnings steadily over the long term.
In this piece, we’ll check out two intriguing names that I believe are worthy of holding until you finally reach that retirement milestone!
AMD
AMD (NASDAQ: AMD) isn’t just another AI chip play that also has its foot in the video-gaming waters. The company has been quietly innovating in the CPU (central processing unit) and GPU (graphics processing unit) scene. Though competition is really fierce in the semiconductor market these days, with every firm seeking to grab a larger piece of the generative artificial intelligence (AI) pie, I’d argue that AMD stock stands to keep the good times going from here. Why?
Its latest Ryzen 8000-series chips are pretty intriguing. They were a standout product during this year’s CES (Consumer Electronics Show) in Las Vegas. I believe the series could be a game-changer for the firm as it doubles down on the ascent of next-gen AI tech.
Sure, AMD stock is not cheap after more than doubling in a year. However, I still view shares as undervalued relative to where the AI chip scene could be headed next. Indeed, if a firm’s position in a growth market is robust, a higher multiple is justified, given its ability to “grow” into it over time.
Shopify
Shopify (TSX: SHOP) is a must-watch (or maybe even a must-own) for Canadian growth investors. On Wednesday, shares surged another 1% to $108 and change. Though analysts are getting jittery over the price tag and the stock’s recent run, I view SHOP stock as in the same camp as AMD: it’s a stock that can easily grow into its multiple.
For now, Shopify has hit the ground running with impressive innovations to bolster its impressive e-commerce platform (or should I say a wide-moat ecosystem). In any case, Shopify stock stands out as a great value if the firm can continue impressing on the sales growth front!
