Over the years, the market’s hottest tech stocks have generated considerable gains for their long-term investors. For example, a $10,000 investment in artificial intelligence (AI) chip giant Nvidia made ten years ago would have reached nearly $3 million today, with dividends reinvested. An investment of $20,000 with its rival AMD would have given rise to an asset worth a little over a million dollars. However, it may be difficult for these companies to replicate these types of gains over the next decade.

So if you’re looking for promising tech stocks that could make new millionaires in a few years, you should look among smaller, faster-growing companies that haven’t yet attracted as much attention. I believe AppLovin (NASDAQ:APP), Opera Limited (NASDAQ:OPRA)And Data Dog (NASDAQ:DDOG) fits this description.

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1. AppLovin

AppLovin publishes its own games and mobile apps, but also provides other companies with AI-based app monetization tools. In 2022, its revenue growth stabilized and it recorded net losses on its bottom line. Its problems then largely resulted from high inflation, rising interest rates and other macroeconomic factors unfavorable to the digital advertising market. All of these challenges offset the inorganic gains from its $1.1 billion purchase of MoPub from Twitter.

But in 2023, AppLovin’s revenue grew 17% and returned to profitability as the digital advertising market stabilized. During its Q3 2024 conference call this month, CEO Adam Foroughi reiterated his outlook for achieving “20 to 30 percent year-over-year growth for the foreseeable future.” From 2023 to 2026, analysts expect its revenue to reach a compound annual growth rate (CAGR) of 24% while its EPS grows at a CAGR of 91%.

Lower interest rates, a warmer macroeconomic environment and the increasing adoption of its Powered by AI AXON ad discovery services are expected to provide the tailwind for this robust growth. On the basis of those optimistic expectationsAppLovin’s stock still appears reasonably valued at 43 times forward earnings – and it could generate millionaire earnings over the next decade if it maintains its current momentum.

2. Opera

Opera’s main product is a web browser for mobile and desktop devices. It only accounts for about 2% of the global web browser market, according to StatCounter, but it still served 296 million monthly active users across its mobile, web and gaming browsers and news apps in the third quarter of 2024 .

Opera is struggling to gain new users in a market dominated by larger browsers like Google Chrome, Apple Safari, and Microsoft Edge. But that pressure is being offset by new AI tools and in-app ads designed to increase its average revenue per user. This is why its revenues and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 20% and 38% respectively in 2023.

Its latest browser, Opera One, combines OpenAI’s generative AI tools with its own built-in AI assistant, Aria. These new AI-based services could retain its current users and help differentiate it from more widely used browsers. From 2023 to 2026, analysts expect the company’s revenue to grow at a compound annual rate of 17%, while its adjusted EBITDA will grow at a compound annual rate of 20%.

Opera’s stock looks cheap, at 11 times next year’s adjusted EBITDA, and its dividend yields a surprisingly high 4.5% at the current share price. The company could achieve a higher valuation and generate significant gains over the next decade as it expands its ecosystem, widens its moat, and finds new ways to monetize its users.

3. Data Dog

Datadog pulls diagnostic data from a wide range of IT platforms into its unified dashboards. It is generative AI assistantBits AI makes it easier to sort all that data. This streamlined process makes it much easier for IT professionals to spot and diagnose hardware and software problems. This valuable service explains how it almost quadrupled its number of large clients (those who provide it with at least $100,000 in annual revenue), going from 858 in 2019 to 3,190 in 2023.

The company’s revenue grew 27% in 2023, its slowest growth rate since its IPO in 2019. However, it also became profitable for the first time that year by reducing its costs and limiting its stock-based compensation expenses.

Datadog faces near-term macroeconomic and competitive headwinds that weigh on its customer retention rates, but it expects its revenue to grow 25% in 2024. From 2023 to 2026, Analysts expect its revenue and EPS to grow at compound annual rates of 23% and 80% respectively. The stock isn’t a bargain at 63 times forward adjusted earnings, but it could still have plenty of room to grow as the IT observability market expands. If Datadog continues to grow its revenue by at least 20% per year for the foreseeable future, it could rack up multibagger earnings and create new millionaires in the future. That may be overkill, but it’s not an impossible goal.

Don’t miss this second chance and a potentially lucrative opportunity

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See 3 “Double Down” Stocks »

*Stock Advisor returns November 11, 2024

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Leo Sun has positions at Apple. The Motley Fool holds positions and recommends Advanced Micro Devices, Alphabet, AppLovin, Apple, Datadog, Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.