1 Super Tech Stock (Besides Nvidia) to Buy Hand Over Fist in 2024

Nvidia rose to prominence and will remain a top investment, it’s true. But investors can still get in on other related action.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published September 24, 2024 8:45 pm EDT

Investors often look to popular stocks as a launching pad for discovering other great growth opportunities, and it’s easy to see why! These well-known stocks usually come with a wealth of information and analysis, making them familiar territory. By studying what makes these giants successful, investors can uncover lesser-known companies that share similar traits but might be flying under the radar. And that’s what we can take away from Nvidia (NASDAQ: NVDA).

Data center woman holding laptop — Source: Getty Images

Nvidia’s rise

Nvidia is a fantastic example of a stock that investors can use as a jumping-off point for exploring other promising growth opportunities! This tech giant has captivated the market with its cutting-edge graphics processing units (GPUs). These have become the backbone of gaming, artificial intelligence (AI), and data centres. Its success is rooted in a strong commitment to innovation and staying ahead of the curve, thus making it a household name among tech enthusiasts and investors alike.

What sets Nvidia apart is its ability to pivot and adapt to new trends. While initially known for gaming, the company has successfully expanded into AI and deep learning, thus capturing a significant share of the market as businesses increasingly rely on these technologies. This versatility not only fuels Nvidia’s growth. It also offers a roadmap for investors looking to spot the next big player in these booming sectors. Sectors like data support.

Hut stock

Hut 8 (TSX: HUT) is quickly becoming a standout option for investors on the TSX, especially when you consider its focus on data centres! As the demand for cryptocurrency mining continues to soar, Hut 8 is positioning itself as a leader in the industry by not just mining digital coins but by also utilizing its robust data centres for various blockchain and cloud services. This dual approach helps to diversify their revenue streams, giving investors the best of both worlds of crypto and data solutions! Plus, with the increasing importance of decentralized finance and digital assets, Hut 8 is sitting in the right spot to capitalize on these growing trends.

What’s even more exciting is that Hut 8 has been making strides in building out its infrastructure to support these data centres, thereby ensuring it’s equipped to handle the demands of the future. By investing in advanced technologies and energy-efficient practices, the company is not only enhancing its operational efficiency but also appealing to environmentally conscious investors.

Remains valuable

With a market cap of approximately T1.39 billion, Hut 8 is not just about crypto. It’s leveraging its data centres to provide blockchain and cloud services, tapping into the growing demand for these technologies. The company’s quarterly revenue growth of 71.5% year-over-year is a testament to its robust business model and adaptability in an ever-evolving market. Plus, with 60.3% of its shares held by insiders, you can bet the management is confident in their strategy!

What really sets Hut 8 apart is its forward-thinking approach to sustainability and efficiency in its operations. As energy concerns continue to rise, Hut 8 is investing in advanced technologies to ensure its data centres are both profitable and environmentally friendly. Its current ratio of 1.67 suggests a solid financial position, enabling it to manage short-term liabilities effectively. With the price of cryptocurrencies fluctuating, Hut 8’s infrastructure and diversification into data services make it an attractive option for investors. Especially for those looking for growth in both crypto and tech sectors.

Bottom line

In a nutshell, Hut 8 is shaping up to be a compelling option for investors on the TSX, blending the worlds of cryptocurrency and data services. With a robust market cap and impressive revenue growth, Hut 8 is not just riding the Bitcoin wave but also capitalizing on the increasing demand for blockchain and cloud solutions. Its focus on sustainability and efficiency adds to the appeal, especially as energy concerns grow. With insider confidence and a strong financial position, Hut 8 offers a promising opportunity for those looking to dive into a stock that marries the excitement of crypto with the stability of tech. It’s definitely one to keep an eye on!