7 Stocks to Dominate in the Next Economic Upturn

Core Insights - The article identifies seven stocks with strong growth potential for the upcoming economic upturn, emphasizing their tactical advantages in their respective industries. Group 1: SoFi (SOFI) - In Q1 2024, SoFi's adjusted net revenue increased by 26% year-over-year to $581 million, marking the 12th consecutive quarter of over 25% growth [3] - The financial services and technology platforms sectors contributed 42% to adjusted net revenue in Q1, up from previous quarters, indicating a strategic shift towards balanced revenue distribution [3] - SoFi's adjusted EBITDA reached $144 million, a 91% year-over-year increase, with the EBITDA margin rising to 25% from 16% in Q1 2023, showcasing improved operational scalability [4] Group 2: AMD (AMD) - AMD's Data Center division achieved record sales of $2.3 billion in Q1 2024, reflecting an 80% year-over-year growth driven by GPU and server CPU sales [6] - The client segment saw an 85% year-over-year increase in sales, attributed to the latest generation of Ryzen processors, indicating strong demand and successful product strategies [6] Group 3: NVIDIA (NVDA) - NVIDIA's Data Center segment reported record sales of $22.6 billion in Q1 2024, a 427% year-over-year increase, primarily due to the deployment of the Nvidia Hopper GPU computing platform [7] - Partnerships with major companies like Meta highlight NVIDIA's role in advancing AI infrastructure, with significant investments in AI-driven features [7][8] Group 4: Intel (INTC) - Intel is positioned for growth due to its leadership in technology and the anticipated demand for AI PCs, supported by the upcoming release of its 18A products [9][10] - The company expects growth in both EPS and sales for 2024, with a quarterly dividend announcement boosting investor confidence [10] Group 5: ACM Research (ACMR) - ACM Research reported $288 million in cash and time deposits in Q1 2024, enhancing its ability to manage operational risks and pursue growth opportunities [11] - Operating income increased significantly to $39.8 million, with an operating margin rise from 14.7% to 26.2%, indicating effective revenue conversion into profitability [11][12] Group 6: Hims & Hers (HIMS) - Hims & Hers improved marketing efficiency, with marketing costs as a percentage of sales rising to 47% in Q1 2024, reflecting better targeting strategies [14] - The company projects sales of $292 million to $297 million for Q2 2024, with a full-year sales estimate of $1.2 billion to $1.23 billion, indicating strong growth prospects [14][15] Group 7: Block (SQ) - Block's profitability improved due to strategic efficiency and cost control, with a focus on high-yield investments in marketing and sales [16] - The company revised its guidance to include a gross profit of at least $8.78 billion, reflecting a 17% year-over-year increase, and a minimum of $1.3 billion in adjusted operating income [17]