Technology has the power to be disruptive. It can change the way you work, pay, shop, or consume data — just like ChatGPT is slowly disrupting the way you search or even create content, image, and codes. The cloud disrupted the licensed software disks; over-the-top (OTT) platforms changed the way you consume content. Tech stocks that picked early on the trend made a fortune for their investors while tech revolutionized the industry.
You have examples of Amazon, Microsoft, Apple, and more that revolutionized their industries (retail, enterprise software, mobile phones). So, where is the next revolution coming from?
Source: Getty Images
Emerging tech stocks that can revolutionize industries
The world is witnessing revolutionary technologies in fuels, automotive, and cryptocurrencies. Artificial intelligence (AI) is changing the narrative of the technology industry, automating the mundane task. Tapping these emerging trends are three stocks that have huge growth potential.
Ballard Power Systems
Ballard Power Systems (TSX:BLDP) is not a tech stock per se. But it is among the few companies that have developed the technology to run cars on water. It is perfecting its hydrogen fuel cell technology to power heavy vehicles like buses, trains, and boats. Hydrogen fuel cells are powering some city buses and industrial vehicles, but the cost is pretty high. The company is receiving orders from companies and governments keen to adopt green hydrogen. But it is far from profits.
Ballard Power Systems’s focus is on funding research on manufacturing technology. Now is a good time to buy the stock while it trades in single digits. Back in 2013, Tesla stock traded between US$3 and US$7 as electric vehicle (EVs) was still being perfected for wider adoption. Today, the stock trades at US$280.96. If you had invested in Tesla stock in 2013, you would be sitting on a fortune.
Hydrogen fuel cells could be an even bigger opportunity, as they will address two major concerns; energy security and carbon emission. Ballard Power Systems has the potential to grow your money 10-fold if hydrogen fuel adoption becomes a reality.
Nuvei stock
While you may not find anything revolutionary right now, Nuvei’s (TSX:NVEI) payments platform could revolutionize the payments industry. As the world becomes smaller and the economy more integrated, international transactions are growing by leaps and bounds. The need of the hour is not just to make cross-currency payments but to do so with several modes — net banking, payment apps, credit and debit cards of thousands of banks.
And call it wishful thinking, but maybe crypto payments might also become globally acceptable if the technology is perfected. Nuvei is tapping this payments network and bringing in as many options as possible. It accepts +600 payment methods, 150 currencies, and 200+ global markets and is adding more. When companies and people have one platform that can make payments even in niche areas, it will revolutionize the payments landscape.
Nuvei is currently profitable but relies heavily on e-commerce transactions. It is now tapping large enterprises with global operations for their payment needs. The stock is trading below its initial public offering price and is highly volatile. But it has significant growth potential in the long term.
Nvidia stock
While Ballard and Nuvei are still far from revolutionizing their industries, Nvidia (NASDAQ:NVDA) has begun revolutionizing the data centre market.
In Nvidia’s second-quarter earnings, Chief Executive Officer Jensen Huang said, “The computer industry is going through two simultaneous transitions — accelerated computing and generative AI … A trillion dollars of installed global data centre infrastructure will transition from general-purpose to accelerated computing, as companies race to apply generative AI into every product, service, and business process.”
Nvidia’s data centre offerings will lead this transition as its graphics processing units (GPU) remain unmatched. The stock has already jumped 198% year to date, as it monetized the generative AI and accelerated computing trend. It has autonomous vehicles and a smart city opportunity that is still in development. Nvidia revolutionized PC gaming and data centre industries. In the future, it could revolutionize the automotive and Internet of Things industries.
