The 3 Smartest Tech Stocks to Buy With $500 Right Now

Tech stocks can be seen as a bit risky, but these three have far less risk and more stability for future investors.

| More on:
up arrow on wooden blocks

Source: Getty Images

Investing in technology stocks might seem like a risky option right now. But not all tech stocks are created equal. In fact, stocks like Thomson Reuters (TSX:TRI), Hut 8 (TSX:HUT), and Celestica (TSX:CLS) can be a savvy move, even with a modest budget of $500. Let’s explore why these companies present compelling opportunities.

3 tech powerhouses

Often perceived as a news organization, Thomson Reuters is, in fact, a leading technology company. Approximately 90% of its revenue comes from data-driven businesses such as Westlaw and ONESOURCE. The company has been integrating artificial intelligence (AI) into its offerings, enhancing efficiency and customer satisfaction. In fact, during the second quarter of 2024, Thomson Reuters reported a 6% increase in revenue, reaching $1.7 billion, and raised its full-year revenue growth forecast to about 7%.

Meanwhile, Hut 8 stock is a prominent player in the cryptocurrency mining sector, focusing on Bitcoin. In the first quarter of 2024, the company reported revenue of $51.7 million and a net income of $250.9 million. As of December 31, 2023, Hut 8 held 9,195 self-mined Bitcoins, valued at approximately $388.1 million. With the growing adoption of cryptocurrencies, Hut 8 is well-positioned to benefit from this trend.

Finally, Celestica specializes in design, manufacturing, and supply chain solutions for various industries. These include aerospace, defence, and health tech. In the third quarter of 2024, the company achieved record revenue of $2.5 billion, a 22% increase from the previous year, and net income of $91.7 million. Celestica’s strong performance is driven by its strategic focus on high-growth markets and operational excellence.

Affordable growth

With a $500 investment, investors can acquire shares in these companies, allowing for diversification across different sectors within the tech industry. This approach helps mitigate risk and provides exposure to various growth opportunities, especially when wanting to get into some of the riskier areas.

However, the technology sector continues to be a driving force in the global economy. In fact, its influence is only likely to increase even more so over the years, as technology continues to become a part of our lives. Companies like Thomson Reuters are leveraging AI to enhance their services, while Hut 8 benefits from the increasing acceptance of cryptocurrencies. Celestica’s involvement in high-demand sectors positions it for sustained growth.

All three companies have demonstrated resilience and adaptability. That’s what makes them less risky, and more stable. Thomson Reuters has successfully transitioned into a tech-centric business, Hut 8 has capitalized on the cryptocurrency boom, and Celestica has consistently delivered strong financial results.

Bottom line

Investing in Thomson Reuters, Hut 8 Mining, and Celestica offers exposure to diverse and growing areas of the technology sector. A combination of recent financial performances, strategic positions, and market trends suggest potential for future growth – thus making these attractive options for investors, even with a modest budget. So if you’re looking for growth from the tech sector, but with less risk, then certainly consider these three tech stocks. Ones that are bound for even further greatness in the years to come.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Bitcoin. The Motley Fool has a disclosure policy.

More on Tech Stocks

A child pretends to blast off into space.
Tech Stocks

2 Compelling Reasons to Snap Up Constellation Software Stock Now

Here's why I think Constellation Software (TSX:CSU) is a top-tier growth stock to own for the long-term right now.

Read more »

hot air balloon in a blue sky
Tech Stocks

3 TSX Stocks Still Soaring Higher With Zero Signs of Slowing

These three stocks may be soaring higher and higher, but don't let that keep you from investing – especially with…

Read more »

Person holding a smartphone with a stock chart on screen
Tech Stocks

Where Will TMX Group Stock Be in 5 Years?

TMX Group (TSX:X) has an extremely good competitive position.

Read more »

crypto blockchain
Tech Stocks

Best Stock to Buy Right Now: Galaxy Digital or Hut 8 Stock?

Cryptocurrency stocks are roaring, but these two could be your best bets right now.

Read more »

dividends can compound over time
Tech Stocks

Billionaires Are Selling Apple Stock and Picking up This TSX Stock Instead

Billionaires tend to know a bit about making money, so if they're selling Apple stock and picking up this other…

Read more »

An investor uses a tablet
Tech Stocks

3 Reasons to Buy Open Text Stock Like There’s No Tomorrow

Here are the top three reasons why you may want to consider OpenText stock right now and hold it for…

Read more »

Shopify's third-quarter results
Tech Stocks

There’s No Stopping Shopify

Shopify stock exploded this week after the company announced Q3 earnings.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Tech Stocks

High-Growth Canadian Stocks to Buy Now

Are you looking to add some growth potential to your portfolio? Here are three stocks to add to your watch…

Read more »