Stocks to buy

3 Tech Stocks to Turn $200,000 Into $1 Million: December 2023

Tech stocks filling the S&P 500 and Nasdaq 100 have fueled significant gains for long-term investors. In fact, many of the largest companies by market cap operate in this industry. If you buy and hold the right tech stocks, it’s possible to see astounding gains long-term.

However, some tech stocks offer better opportunities than others. When looking for these types of returns, investors have to target smaller companies not quite ready to join the trillion-dollar club. Below, I’ve selected three such stocks, and made sure that the largest market cap among the companies they represent is under $40 billion.

Let’s take a look.

Datadog (DDOG)

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Datadog (NASDAQ:DDOG) is a cloud infrastructure company that helps companies run more efficiently and stay safe from online hackers. After a disappointing 2022, the stock has enjoyed a resurgence this year. Notably, shares are up by 58% year-to-date (YTD)

Additionally, Datadog recently reported 25% year-over-year revenue growth with $22.6 million in net income. Datadog’s jump into profitability has made the stock look more enticing for investors.

Reassuringly, the company is doing a good job of managing debt as it continues to grow. Datadog has $2.8 billion in total current assets, compared to $842 million in total current liabilities.  

Datadog remains financially sound in an industry that offers high growth for investors. Despite the rally, DDOG stock trades more than 40% below its all-time high. Currently, Datadog has a $37.4 billion market cap. A 5x growth rate would result in a $187 billion market cap.

Axcelis Technologies (ACLS)

Source: Pavel Kapysh /

Axcelis Technologies (NASDAQ:ACLS) is a rapidly growing semiconductor stock. The firm does not produce chips but uses its ion implantation technology to optimize chip performance. The relatively small company only has a $4 billion market cap and trades at a reasonable P/E ratio that’s currently below 18.

Shares have cooled off since the summer, now down by almost 40% from their all-time high. However, the stock is up by 57% YTD and has gained 590% over the past five years. In fact, Axcelis Technologies has already turned $200,000 into $1 million for some investors. 

Despite the low valuation, Axcelis Technologies continues to achieve impressive top-line and bottom-line growth. In the third quarter, the company grew its revenue by 27.5% year-over-year. Net income jumped by 63.7% year-over-year. 

James Coogan, Executive Vice President and Chief Financial Officer, highlighted that the company is achieving these growth rates during a “significant industry downturn.” When the industry picks up again, Axcelis Technologies may see its revenue growth accelerate. 

Nu Holdings (NU)

Source: Wright Studio /

Nu Holdings (NYSE:NU) is a fintech company that operates in South America. If you’re a fan of the Oracle of Omaha, you’ll want to pay attention. The company has received backing from Warren Buffett, who holds almost $1 billion worth of shares.

The digital banking platform was founded in 2013 and has been available on the open market since 2021. Like many tech stocks, Nu Holdings stock endured considerable losses. However, shares have been charging ahead in 2023 and are up by 131% year-to-date. 

Soaring revenue and net income growth have ignited the rally. In the third quarter, Nu Holdings reported 64% year-over-year revenue growth. Net income jumped from $7.8 million to $303.0 billion in one year. 

Nu Holdings is one of the largest financial platforms on the planet with over 90 million customers. The company achieved 27% year-over-year customer growth in the most recent quarter. High growth rates combined with increasing the average value of each customer makes for a good combination. 

Customer balances have grown by high double-digits for their portfolios and bank accounts. Credit card growth came in at 23% year-over-year. That growth brought the total number of active credit card customers to 38.9 million. Nu Holdings continues to impress investors and can reward people who remain patient. 

On this date of publication, Marc Guberti held a long position in ACLS. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Marc Guberti is a finance freelance writer at who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.