Investing in Canadian tech stocks could be a great way to multiply your hard-earned savings over time, especially if you can identify the companies that are driving innovation. However, finding the next big tech winners might not be easy, as many promising startups usually fail to live up to their hype or face intense competition from larger rivals. That’s why long-term investors should look for tech stocks that can grow significantly by leveraging emerging trends in the tech industry.
In this article, I’ll highlight two top tech stocks that could make you a millionaire if you buy and hold them for the long term. While no one can guarantee which stock will perform well in the future, I believe these two Canadian tech stocks have the fundamentals that make them stand out from the crowd — making them worth considering in 2024.
A fintech stock with solid fundamentals
Nuvei (TSX:NVEI) is the first tech stock you can buy in 2024 and hold for the long term to expect outstanding returns on your investments in the long run. The Montréal-based tech firm currently has a market cap of $4.6 billion as its stock trades at $33.03 per share. It focuses on providing electronic payment-related technology to merchants of all sizes across the globe, with Europe, the Middle East, and North America being some of its largest geographical markets. NVEI stock ended the final quarter of 2023 on a solid note by rallying 71%, following a 65% value erosion in the previous two quarters.
Nuvei’s diversified revenue streams, fast-growing customer base, and strategic acquisitions have helped its financials grow rapidly in recent years. In the first three quarters of 2023, total sales jumped 39.4% YoY (year over year) to US$868.4 million, exceeding Street analysts’ estimates. While its adjusted earnings in these three quarters trended downward on a YoY basis, its surging total volume, due mainly to the growing contribution of e-commerce, cheered investors.
Notably, NVEI stock has seen around 26% value erosion in the last year despite its recent rally, making its share prices still look undervalued. Moreover, I expect its financial growth to accelerate further in the coming years, as the macroeconomic environment improves with expectations of a reduction in interest rates.
A top AI-focused cybersecurity and mobility tech stock
BlackBerry (TSX:BB) could be another attractive tech stock to consider right now, especially from a long-term perspective. The Waterloo-headquartered software firm currently has a market cap of $2.3 billion as its TSX-listed stock trades at $4 per share after declining by nearly 29% in the last year.
Besides its artificial intelligence-powered enterprise cybersecurity solutions, BlackBerry has increased its focus on developing innovative technological solutions for futuristic mobility in recent years. Its machine learning-based vehicle data platform, IVY, could be a great example of BlackBerry’s growing efforts in this direction. As experts expect the demand for such innovative tech solutions to grow at a fast pace, I wouldn’t be surprised if BlackBerry’s financials witness massive improvements in the next decade, which should also help its share prices surge.
