3 No-Brainer Tech Stocks to Buy With $5,000 Right Now
Not every investor wants to buy an index fund and settle for average returns. Some people want to try to beat the market, and the tech sector has offered some of the most compelling returns. For instance, the State Street Technology Select Sector SPDR ETF (XLK -0.02%) has an annualized 24.3% return over the past decade, soundly outperforming the S&P 500 during that stretch.
While tech exchange-traded funds (ETFs) can outshine the S&P 500, investors can give themselves a chance to enhance their returns by investing in solid tech stocks with promising long-term catalysts. If you have $5,000 ready to put to work in the market now, these three look like some of the best options.
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Cipher Digital
Cipher Digital (CIFR +3.90%) builds artificial intelligence (AI) data centers for hyperscalers that need additional capacity. It relies on a co-location model, which means Cipher Digital provides the facilities and power, while its tenants are responsible for bringing their own chips.
Today’s Change
(3.90%) $0.57
Current Price
$15.18
Key Data Points
Market Cap
Day’s Range
$14.18 – $15.33
52wk Range
$7.08 – $30.14
Volume
41.8K
Avg Vol
29.4M
Gross Margin
-8842.71%
This arrangement reduces the size of Cipher Digital’s revenues, but it also reduces the company’s overhead. Furthermore, when AI processors become obsolete because newer versions have come out, or because they’ve simply reached the end of their useful lives, the costs of replacing them do not fall on Cipher Digital.
The company has signed multiple long-term deals with hyperscalers. Cipher Digital began delivering data center capacity at its Black Pearl site in August, which was two months ahead of schedule. Its average contracted net operating income is projected to jump substantially from $97 million this year to $686 million next year.
Cipher Digital is targeting a 5.2 gigawatt (GW) portfolio by 2030. As Cipher Digital brings more of its data center sites online, its revenue should compound quickly. It has had no issue with securing deals, especially as demand for AI compute continues to accelerate.
Marvell Technology
Marvell Technology (MRVL -1.86%) first got people’s attention when Nvidia CEO Jensen Huang predicted that it would be the next $1 trillion company. That remark brought more attention to the stock, which has more than doubled this year.
Today’s Change
(-1.86%) $-3.91
Current Price
$206.48
Key Data Points
Market Cap
Day’s Range
$203.50 – $208.49
52wk Range
$61.44 – $329.88
Volume
134K
Avg Vol
38.3M
Gross Margin
51.42%
Dividend Yield
0.12%
Marvell Technology specializes in AI networking products and application-specific integrated circuits (ASICs). ASICs are powerful custom chips designed for a narrow range of workloads, but they have become a more important part of AI infrastructure as tech giants seek ways to improve efficiency and lower costs. Broadcom (AVGO -0.66%) has dominated this space, but Marvell’s $120 billion chip-design deal with Alphabet (GOOG +0.53%) (GOOGL +0.63%) demonstrates how quickly it is gaining ground.
Its shares are actually down since Marvell Technology announced that deal, as investors wanted the revenue to arrive right away. The bulk of that revenue will start to show up in Marvell Technology’s fiscal 2029. Meanwhile, it recently reported its fiscal 2027 second-quarter results, which showcased a 37% year-over-year revenue jump.
Management also guided for fiscal 2027 Q3 revenue of $3.15 billion at the midpoint. That would be a 52% year-over-year increase. All of this growth is taking place without the money from the Alphabet deal. When revenue finally materializes from that megacontract, the stock may continue to rally toward new highs.
Fortinet
Fortinet (FTNT -4.52%) is benefiting from a multiyear tailwind. As AI agents proliferate the digital world, organizations’ cybersecurity needs will increase. AI will increase the number of vulnerable points, and this same technology also makes it easier for hackers to infiltrate online systems.
Investors have been connecting the dots, which is one reason Fortinet shares have more than doubled this year. Fundamentals remain strong, with 26% year-over-year revenue growth in Q2 being one of the main highlights of its latest report. Fortinet also raised its guidance for the year. A solid base of more than 900,000 lifetime customers offers Fortinet meaningful growth potential as more businesses use AI and end up needing additional cybersecurity protections.
Fortinet’s valuation has increased a bit due to the run-up. The stock has long-term tailwinds, but it may be on the verge of a near-term correction that could lead to a more attractive entry point.
