3 High-Growth Tech Stocks Revolutionizing the Industry

With the adoption of cutting-edge technologies across diverse industries and the heavy use of software solutions led by technological advancements at the forefront, the tech market is well-positioned for continued growth. Further, as AI is continuously expanding in scope and scale, it is opening new market opportunities.

Given the industry’s robust outlook, it could be wise to invest in high-growth tech stocks ServiceNow, Inc. (NOW), Adobe Inc. (ADBE), and Dell Technologies Inc. (DELL), which are revolutionizing the industry.

The year 2024 remained a successful year for the technology industry, with innovations stepping in and revolutionizing various industries, coupled with favorable government initiatives resulting in ease in borrowings and investment prospects. The tech market evolved this year with technologies like RPA, AI, blockchain, extended reality, quantum computing, and platform engineering.

Further, artificial intelligence (AI) is currently present in almost every technological innovation, adding new avenues to the segment. AI is transforming most industries and making everything work more efficiently, at a better pace, and more intuitively. Companies and cloud service providers are increasingly investing in understanding and exploring AI, resulting in higher AI adoption.

The rapid growth of the IT industry has also boosted the demand for technology hardware. This is because the updated ecosystem is required to access and operate the latest technologies and software. The IT hardware market is expected to reach $191.03 billion by 2029, exhibiting growth at a CAGR of 7.9%, driven by demand for improved features and enhanced connectivity.

Besides, amid the ongoing digital transformation in enterprises and rapid advancements in AI, cloud computing, and automation to enhance efficiency and innovation, the software industry is growing. The global software market is expected to grow at a CAGR of 11.8%, resulting in a market value of $2.25 trillion by 2034.

Therefore, as the tech market is poised for robust growth, investors could park their money in high-growth tech stocks, which are revolutionizing the industry to capitalize on the trends. Considering the conducive industry trends, investing in high-growth tech stocks such as NOW, ADBE, and DELL could be wise.

Let’s discuss the fundamentals of these stocks in detail:

ServiceNow, Inc. (NOW)

NOW provides end-to-end intelligent workflow automation platform solutions for digital businesses internationally. It operates the Now platform for end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, and collaboration and development tools.

On December 3, NOW and Amazon.com, Inc.’s (AMZN) AWS expanded their strategic collaboration with new capabilities to accelerate AI-driven business transformation across all aspects of the enterprise. The new connector enables seamless use of multimodal models developed and trained on Amazon Bedrock for GenAI-powered workflows on the Now Platform.

On November 19, NOW expanded its strategic alliance with Microsoft Corporation (MSFT), integrating Now Assist with Microsoft 365 Copilot to streamline workflows and enable conversational self-service capabilities within Microsoft apps for tasks like knowledge searches and service requests. The collaboration will bring together two leading AI offerings to drive maximum value.

During the third quarter that ended on September 30, 2024, NOW’s total revenues increased 22.2% year-over-year to $2.80 billion. The company’s non-GAAP gross profit of $2.31 billion reflects 23.2% growth from the year-ago period. Its non-GAAP income from operations grew 29% from the year-ago value to $ 872 million.

In addition, the company’s non-GAAP net income totaled $775 million, up 28.5% from the prior year’s quarter, while its non-GAAP net income per share rose 27.4% year-over-year to $3.72.

As per the company’s guidance for the fourth quarter, NOW expects Subscription revenues of $2.87 - $2.88 billion, representing growth of 21.5% - 22% year-over-year.

Also, for the full year, the company expects Subscription revenues to range between $10.65 billion and $10.66 billion, reflecting growth of approximately 23%.

For the fourth quarter (ending December 2024), analysts expect NOW’s revenue to grow 21.6% year-over-year to $2.96 billion, while its EPS is expected to increase 17.4% year-over-year to $3.65 for the same period. Also, the company topped the consensus revenue and EPS estimates in the trailing four quarters.

NOW’s stock has gained 55.8% over the past six months and 60.6% over the past year to close the last trading session at $1129.93.

NOW’s robust outlook is reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

The stock has a B grade for Growth, Sentiment, and Quality. Within the B-rated Software - Business industry, NOW is ranked #13 of 39 stocks.

Click here to access additional ratings of NOW for Momentum, Value and Stability.

Adobe Inc. (ADBE)

ADBE operates as an international diversified software company. The company operates through three segments: Digital Media; Digital Experience; and Publishing and Advertising. The company offers products, services, and solutions that allow individuals, teams, and enterprises to create, publish, and promote content.

On December 10, ADBE and Box, Inc. (BOX), the leading Intelligent Content Management platform, announced a partnership to redefine how digital media is managed, created, and shared in the enterprise. With Adobe Express available as the default image editor in Box, customers will be able to easily create more engaging content without leaving Box’s secure platform.

Adobe Express brings the best of Adobe’s industry-leading creative tools into an app everyone can use. Powered by Firefly AI and built with easy features, the solution is designed to be commercially safe so enterprises can use it with confidence.

On December 3, ADBE and Amazon’s Amazon Web Services (AWS) expanded their strategic partnership to make Adobe Experience Platform (AEP) available on AWS, which empowers brands to deepen customer relationships through precise personalization. AEP delivers an actionable view of customers across every channel, with AI-driven insights ensuring timely and relevant customer experiences.

In the fourth quarter that ended on November 29, 2024, ADBE’s total revenue rose 11.1% from the prior year’s quarter to $5.61 billion, and its gross profit increased 13% year-over-year to $4.99 billion. The company’s non-GAAP operating income of $2.60 billion indicates growth of 10.8% over the previous year.

Furthermore, the company’s non-GAAP net income grew 8.8% and 12.6% from the year-ago value to $2.13 billion and $4.81 per share, respectively.

For the fiscal year 2025, ADBE projects total revenue between $23.30 billion and $23.55 billion. Its Digital Media segment revenue is expected to be between $17.25 billion and $17.40 billion, and its Digital Experience segment revenue is expected to be between $5.80 billion and $5.90 billion. Also, the company’s non-GAAP EPS is set between $20.20 and $20.50.

Further, for the first quarter of fiscal year 2025, the company expects total revenue of $5.63 billion - $5.68 billion, and its non-GAAP EPS is expected to range from $4.95 to $5.00.

Street expects ADBE’s revenue and EPS for the first quarter (ending February 2025) to increase 9.3% and 11% year-over-year to $5.66 billion and $4.97, respectively. Moreover, the company has surpassed the consensus EPS and revenue estimates in all four trailing quarters, which is impressive.

ADBE’s stock has increased marginally over the past six months to close the last trading session at $461.53.

ADBE’s POWR Ratings reflect its solid fundamentals. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

ADBE has an A grade for Quality and a B grade for Growth. It is ranked #13 out of 126 stocks in the Software – Application industry.

In addition to the POWR Ratings we’ve stated above, we also have ADBE ratings for Momentum, Value, Sentiment, and Stability. Get all ADBE ratings here.

Dell Technologies Inc. (DELL)

DELL designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services internationally. It operates through two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).

On December 9, DELL expanded its strategic relationship with AI hyperscaler CoreWeave as the first to ship Dell PowerEdge XE9712 server racks with NVIDIA GB200 NVL72 to support CoreWeave’s cloud services platform. The agreement reflects the two companies’ endeavors to meet the growing demand for high-performance cloud environments for generative AI developments.

The strategic agreement will support next-generation AI innovation and offer enterprises access to the latest AI infrastructure and services, marking a significant milestone for AI development.

On November 19, DELL accelerated AI innovation and strengthened cybersecurity strategies for Microsoft customers with Dell AI factory additions, which improved AI performance in multi-cloud environments and simplified the development of custom AI solutions using Microsoft tools.

These additions include Dell APEX File Storage for Microsoft Azure, which offers AI-powered, Dell-managed enterprise-class data protection and cyber resilience with improved resource usage using advanced data reduction capabilities.

During the third quarter that ended November 1, 2024, DELL’s total net revenue increased 9.5% year-over-year to $24.37 billion. Its non-GAAP operating income rose 12% from the year-ago value to $2.20 billion. Also, the company’s non-GAAP net income and non-GAAP EPS came in at $1.54 billion and $2.15, up 10.9% and 14.4% year-over-year, respectively.

Street expects DELL’s EPS to grow 14.1% year-over-year to $2.51 for the fourth quarter (ending January 2025). For the same quarter, the company’s revenue is expected to increase 10% year-over-year to $24.54 billion. Further, DELL surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.

Over the past year, the stock has gained 62.6% to close the last trading session at $119.27.

DELL’s bright prospects are reflected in its POWR Ratings. The stock has a B grade for Growth and Momentum. It is ranked #19 among 41 stocks within the Technology - Hardware industry.

To see the other DELL ratings for Stability, Value, Quality, and Sentiment, click here.

What To Do Next?

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NOW shares were trading at $1,114.13 per share on Tuesday afternoon, down $15.80 (-1.40%). Year-to-date, NOW has gained 57.70%, versus a 28.26% rise in the benchmark S&P 500 index during the same period.

Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.

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