2 Tech Stocks That Could Help Make You a Fortune

Building wealth in the stock market is fairly simple if you maintain a long-term mindset and focus on stocks of competitively positioned businesses. Investing in innovative companies with substantial growth potential is key. Historically, the tech sector has been an excellent place to find such businesses.

The Trade Desk (NASDAQ: TTD) and Axon Enterprise (NASDAQ: AXON) are well positioned to gain market share in the fast-growing markets of digital advertising and public safety. These stocks are trading well off their highs, and the discounts could set the stage for excellent returns over the next decade and beyond.

Image source: Getty Images.

1. The Trade Desk

The digital advertising market is expected to exceed $950 billion in 2026, according to Statista, providing a massive opportunity for The Trade Desk. Its platform helps ad buyers gain exposure across online content, streaming platforms, and more. Despite continued business growth, the stock is trading well off its highs, offering investors a chance to buy it at a discount.

The company generates revenue from taking a cut of the total ad spending on its platform. Last year, it generated $13 billion in gross spending and earned nearly $3 billion in revenue. That represented an increase of 18% over 2024. Given the size of the digital ad market, there is ample room for The Trade Desk to continue growing and deliver wealth-building returns to investors.

The Trade Desk's competitive advantage is rooted in an ad-buying experience that puts its customers first, as it doesn't sell its own ad inventory, unlike some competitors. It helps clients find the best options for their needs. This has resulted in The Trade Desk retaining more than 95% of its customers over the last 12 years.

Slowing growth has weighed on the stock over the past year. Management cited weakness in consumer goods and auto, which make up a quarter of its business. However, this could turn into a tailwind when economic conditions improve and ad spending returns in these industries.

Patient investors could be getting a steal, as The Trade Desk is still working toward capturing a $1 trillion addressable market. Analysts forecast the company's earnings to grow at double-digit rates going forward, yet the stock is trading at just 11 times this year's earnings estimate.

2. Axon Enterprise

Axon is tapping into a massive growth opportunity by building a modern tech stack for law enforcement and public safety. What started primarily as a company selling Taser energy devices has evolved into a platform that combines data from body cameras, in-car cameras, and drones with cloud software and artificial intelligence (AI) tools.

This platform approach is a powerful growth engine. Axon can land customers with hardware devices and then expand those relationships with high-margin software and services. In the fourth quarter, total revenue surged 39% year over year to $797 million, with software revenue up 40%. The company's annual recurring revenue also grew 35% to $1.3 billion.

Axon shares are trading below their previous peak amid concerns that AI could disrupt its cloud software offering. But that fear might be overlooking Axon's data moat. Axon's devices collect real-world data at scale, which can be used to train and improve AI products that solve specific problems for agencies.

Bookings from AI-powered products nearly tripled last year to more than $1 billion, and it's just getting started. Axon has clear visibility into long-term growth, with future contracted bookings topping $14 billion. Management expects annual revenue to reach $6 billion by 2028 while achieving an adjusted operating margin of 28%.

Axon has a bright future as it aims to expand into enterprise, corrections, federal, and international markets. The stock trades at a high forward earnings multiple of 64, supported by recurring revenue from its software platform and high earnings growth expectations. Analysts forecast the company's earnings to grow at an annualized rate of 38% in the coming years, which could fuel excellent returns over the long term.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axon Enterprise and The Trade Desk. The Motley Fool has a disclosure policy.