This year, I’ve put nearly $15,000 to work buying three tech stocks to add to my personal portfolio. Let’s dig into why I like these three stocks.
My most recent buy has been shares of Advanced Micro Devices(NASDAQ: AMD). The stock has been on a bit of a roller coaster ride to start the year, and I bought the shares on its recent dip.
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Most of the attention around AMD has been with regard to its recent graphics processing unit (GPU) partnerships with OpenAI and Meta Platforms. Both companies have made large 6-gigawatt commitments to buy AMD’s GPUs, while AMD has given both companies warrants equal to about 10% (each) of its current shares outstanding.
Image source: Getty Images.
On the surface, this seems like a steep price to pay to get these commitments, but for the warrants to vest, they not only come with the delivery of its GPUs, but also certain thresholds AMD’s stock has to hit. The final tranche is believed to be at $600, which is about triple AMD’s current share price. Meanwhile, the deals also basically require both companies to scale AMD’s ROCm software platform within their data centers, which is how the company can break through Nvidia’sCUDA vice grip. As such, I look on these deals as favorable growth drivers.
However, what gets me most excited about the stock is actually the opportunity it has in data center central processing units (CPUs). With the age of agentic AI upon us, there is going to be a much bigger need for high-performance CPUs to manage the logic and data flow behind AI agents. As such, the GPU-to-CPU ratio in AI data centers could be about to materially shift, which is a catalyst not priced into AMD’s stock. This makes it a top AI stock to own.
ServiceNow(NYSE: NOW) is an example of a stock I feel has been thrown out with the proverbial bathwater. While investors have sold off software-as-a-service (SaaS) stocks due to the fear of AI disruption, ServiceNow’s platform is so tightly ingrained within its customers’ workflow and data that it isn’t going anywhere. It’s a premier SaaS provider that has embraced AI and has big opportunities in this area.
The company’s generative AI suite, Now Assist, has been growing quickly, with its annual contract value (ACV) hitting $600 million last quarter, and it is projected to grow to more than $1 billion by year’s end. Meanwhile, it’s looking to become an orchestration platform for agentic AI with its new AI Control Tower platform, while its recent acquisitions of Armis and Veza will importantly help boost its security capabilities in this area.
ServiceNow is still growing its revenue at a more than 20% clip and looks more like an AI winner than a loser in my book, making its sell-off seem way overdone.
To me, Pinterest(NYSE: PINS) is an extremely undervalued stock that hasn’t gotten the credit it deserves for the transformation that its platform has undergone.
The company’s biggest so-called fault is its exposure to the home decor industry, and that it is much more tied to large retailers compared to the smaller advertisers that are Meta Platforms’ bread and butter. These issues are more cyclical than structural, and Pinterest was still able to grow its revenue by a solid 14% last quarter. The pressure in the stock has dropped its forward price-to-earnings ratio (P/E) to about 11 times based on 2026 analyst estimates and below 8.5 times based on 2027 estimates.
Pinterest has used AI to turn its platform into a premier shopping discovery platform with multimodal search, virtual try-on features, personalized curation, and an AI shopping assistant. Meanwhile, it’s using AI to help advertisers better target users and improve conversions. It also continues to see strong increases in both new users and ARPU (average revenue per user) outside the U.S.
The company also has the backing of renowned activist investor Elliott Investment Management, which recently bought $1 billion in convertible notes to help Pinterest fund an accelerated share repurchase (ASR) agreement and ongoing buyback plan. This is a smart move, as the stock is just too cheap.
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Geoffrey Seiler has positions in Advanced Micro Devices, Meta Platforms, Pinterest, and ServiceNow. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Nvidia, Pinterest, and ServiceNow. The Motley Fool has a disclosure policy.
