Vandita Jadeja
·4 min read
Smart investors ask for proof before investing in stocks. Fortunately, some companies have generated 20% returns in a month and there’s proof. Taking home 20% gains in a month feels like a dream, but these stocks have the potential to soar higher. Although not cheap stocks, the companies are some of the best in the industry. They have the potential to generate solid returns if you hold on to the stocks. With that in mind, let’s look at the biggest stock movers of March.
Nvidia (NVDA)
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A hot tech stock, Nvidia(NASDAQ:NVDA), has gained massive popularity for its success in artificial intelligence (AI). Up 20% in the month and 97% year-to-date, NVDA stock has doubled the money of many investors. There’s no stopping this rally because no other company comes close to Nvidia. Yes, competition is heating up but it will take time to reach where Nvidia is standing today.
Until supply and demand are balanced, the company will enjoy a pricing power and report solid results. The company updates its products every few years which helps maintain demand and market share. Nvidia recently unveiled B200, the ‘world’s most powerful AI chip,’ to maintain its dominance in the market.
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It is built on the success of AI chips and is much faster with a 25x lower cost. It also consumes less energy and the demand for its chips will help the company maintain its rally well into the next quarter. Several countries across the world use Nvidia’s services for AI, which also drives demand.
It is impossible to argue when it comes to Nvidia but it will likely report impressive fundamentals throughout the year. Wall Street’s favorite stock, NVDA, is inching closer to $1,000 and beyond.UBS analystshave raised the price target of the stock to $1,100. This is one stock that can make investors filthy rich and we’ve already seen the proof.
Okta (OKTA)
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Up 22% in the month and 26% in the year, Okta(NASDAQ:OKTA) is one of the biggest stock movers of March. The cybersecurity firm builds identity access management solutions for cloud-based platforms. With the soaring demand for cloud, these solutions are also high in demand.
Its services allow companies to handle the identities of the employees, customers and partners. The demand for protection from hackers will only increase, and this is where Okta is set to benefit the most. It is one of the biggest stock movers of the month.
The stock soared during the pandemic and was trading as high as $291 in Dec. 2021 but has lost a lot of value since then. In the recent quarter, the company topped estimates and raised the full-year sales outlook.
It locked in deals with 120 customers with an annual contract value of $100,000. The company saw a 19% YOY revenue jump and a 14% jump in customer growth. It also managed to double the cash flow from the prior year.
In the first quarter, the company expects revenue in the range of $603 mto to $60frommillion which will be 17% YOY, growth. The stock is soaring on solid earnings and due tobelieve it will, continue this quarter. Okta enjoys a strong financial position in the industry, and several analysts have raised the stock’s price target astocke results.
Subased onicro Computer (SMCI)
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While Nvidia has been an outperformer this year, it lags behind Super Micro Computer(NASDAQ:SMCI). The company has seen tremendous success over the past year, and the stock is up 265% YTD. It is up 840% in the year and is trading for $1,042. Yes, it costs more than Nvidia, but is closely connected with the chip maker.
Nvidia relies on Super Micro Computer for the servers that can run the AI semiconductors and microchips. This means whenever Nvidia thrives, Super Micro Computer will follow suit. With the rising demand for Nvidia’s chips, SMCI is set to grow this year.
With the new Nvidia Blackwell B200 chips, there is high expectation. If I had to choose between Nvidia and SMCI, I’d pick Nvidia. While SMCI will become a coveted asset this year, it heavily depends on Nvidia for business.
The company impressed investors with thesecond quarter resultswhere the sales came in at $3.66 billion and the net income stood at $296 million. For the current quarter, it aims for sales of $3.7 billion.
Northlandhas raised the price target of the ststock’s price targetoutperform rating whileJP Morgan has an overweight rating with a target price of $1,150.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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