3 Software Stocks That Can Make You a Millionaire

Do you want to become rich? Apparently, professional athletes and entertainment icons are doing well. But not everyone is talented enough to become any of them.

Fortunately for the rest of us, it is still possible to become a self-made millionaire even with an average income. The key is to find, buy and then hold the right stocks. It’s also worth noting that technology stocks have provided most of the long-term gains. And that makes sense. After all, these core companies are introducing the most revolutionary solutions in the world.

Here, we’ll take a closer look at three software companies (a subset of the tech sector) that can help you become a millionaire if you put enough time into them.

1. C3.ai

You are probably aware of the recent development of various artificial intelligence (AI) platforms such as ChatGPT, Google Gemini (formerly Bard), or whatever. Microsoft (NASDAQ: MSFT) it is now called Copilot. You may have even tinkered with some of these tools yourself to see what they can do. And if so, you’re probably impressed.

Which you probably have NO However, there is practical, widespread commercial use of generalized AI-based chatbots.

Just understand that platforms like ChatGPT or Gemini are not the only AI tools available. Over there If Higher-level business-focused AI platforms that are already generating revenue.

C3.ai (NYSE:AI) is one of the bigger names behind such enterprise-level solutions. And there was no problem with selling them. Oil and gas giant Shellfor example, it uses C3 technology to predict which parts or components of physical infrastructure require maintenance, which means less downtime due to unexpected disruptions. The U.S. Air Force is implementing a similar program aimed at ensuring more of its planes remain airworthy. The company’s software has even been used to help fight the Covid-19 pandemic.

The point is that most enterprise customers are still learning the full potential of artificial intelligence and its capabilities. Much of this company’s growth comes before growth rather than behind it. Precedence Research predicts that the global AI software market will grow 23% annually through 2032 as more organizations pay for access to such tools. C3’s revenue is expected to grow 23% this year and another 22% next year.

Yes, the company’s recent strong performance makes the idea of ​​going public right now a bit intimidating. But don’t be intimidated. C3 stock is still much closer to its all-time low at the end of 2022 than its all-time high at the end of 2020. There is still plenty of room for more upside potential.

The story continues

2. Palo Alto Networks

For almost as long as personal computers have existed, criminals have tried to exploit their vulnerabilities. And as long as computers and the networks they are a part of exist in the future, nefarious people will continue to exploit them.

The increasing use of computers (and smartphones) actually creates greater opportunities for cybercrime. According to the U.S. Federal Bureau of Investigation, reports of online fraud increased 10% last year, leading to a 22% increase in financial losses. Overall, the FBI estimates that by 2023, cybercrime losses in the United States alone will reach $12.5 billion.

Enter Palo Alto Networks (NASDAQ: PANW). This is one of the elements that helps the world defend itself against digital threats. Firewalls, Internet of Things (IoT) support, malware protection, data protection and secure remote login are just some of the services offered. And he is good at what he does. Technology market research team Gartner for example, it rates its endpoint protection platform as one of the best available.

Anyone who follows this company and/or this stock probably knows that this advantage hasn’t mattered much lately. Although the company’s shares hit record highs in February just before the company released its fiscal second-quarter results, the withdrawal of full-year expectations spooked investors, leading to a sharp decline in profits after the results were released. Since then, efforts to revive the stock have met with little success.

But take a step back and look at the bigger picture. The company’s turnover is expected to grow by a further 16% this year and by a further 14% in the next financial year, with similar growth on the horizon until at least 2028. Profits are expected to grow faster during this period. That’s slightly faster than the nearly 10% annual growth that Inkwood Research predicts for the global cybersecurity sector through 2032. But Palo Alto Networks is poised to capture more than its fair share of that growth.

3.Microsoft

Finally, add Microsoft to your list of software stocks that make millionaires.

It’s an oldie but goodie idea. Microsoft is, of course, the original titan of the software market. The Windows operating system is the primary reason personal computers became widespread in the 1990s, although personal work and entertainment software certainly helped usher in the personal computer era.

Microsoft is now also the name behind the Bing search engine, owns LinkedIn, offers cloud computing infrastructure services and produces the Xbox video game console – just to name a few other ventures.

However, it is still primarily a software company, and a very important one at that. GlobalStats data shows that the Windows operating system is installed on almost three-quarters of the world’s personal computers. Office software such as Word and Excel still enjoys a large market share.

This is way However, the software industry is changing – and Microsoft is changing with it – which makes these products a must-have for most products.

You see, instead of purchasing and installing software out of the box (from disk) one time, more and more consumers and businesses are “renting” access to cloud versions of these programs. While these monthly and yearly subscription costs are relatively modest, they actually represent a competitive advantage. This is because the costs are so low that customers will want to keep these plans for a long, long time. This reduces the company’s final marketing costs while increasing the reliability and predictability of its revenues.

That said, perhaps the most significant factor in Microsoft’s growth is the one that is least visible. That’s what its cloud computing business is all about. Although the company still lags behind AmazonData from Synergy Research Group shows that cloud computing company Microsoft has 31% of the cloud market share and is growing faster than any other provider. And with a share of 24%, it is not impossible that Microsoft may become the largest cloud service provider in the world in the foreseeable future.

Is it worth investing $1,000 in Microsoft now?

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. James Brumley has no position in any of the companies mentioned. The Motley Fool covers and recommends Amazon, Microsoft and Palo Alto Networks. The Motley Fool recommends C3.ai and Gartner and recommends the following options: long January 2026 Microsoft call for $395 and short January 2026 Microsoft call for $405. The Motley Fool has a disclosure policy.

3 Software Resources That Can Help You Become a Millionaire was originally published by The Motley Fool