It’s hard to beat the growth potential of cryptocurrencies. For example, Ark Invest founder Cathie Wood believes Bitcoin has the potential to rise by over 2,000% in the long term. But some stocks have the potential to grow as well. If you’re looking for the biggest upside, these two stocks are your best bets.
This AI stock is soaring
No list of stocks poised for big gains would be complete without including the following: NVIDIA (NASDAQ: NVDA)Few investments have ever grown as fast as this chipmaker. A $1,000 investment five years ago would already be worth more than $26,000. But Wall Street analysts still see a 30% or higher gain in the next 12 months. Given that Nvidia’s market cap is currently around $2.6 trillion, it may be hard to imagine even bigger gains in the near future. But there are some reasons for optimism.
The same catalysts that have made NVIDIA’s stock soar should not only remain so for the next few decades, but should also strengthen significantly over time. In many ways, the NVIDIA story is still in its early stages. That’s because the company’s biggest source of growth is in AI Technology It relies on a powerful Graphics Processing Unit (GPU) to function.
Gone are the days when Nvidia’s financial health was driven by gaming and smaller use cases. Now there’s an arms race for the components that enable AI research and innovation, and Nvidia has the products everyone wants.
AI industry spending on semiconductors totaled about $15 billion last year, according to BIS Research estimates, but spending is already set to increase dramatically through 2024, helping to drive Nvidia’s revenue to more than double over the past 12 months.
BIS Research expects spending to grow nearly 32% over the next few years, with strong growth expected after that. Nvidia has an estimated 90% market share. About AI GPUsThis positions the company to capture the lion’s share of long-term growth trends, including the rise of cryptocurrencies, as Nvidia designs many of its GPUs specifically for crypto mining.
What sector has the potential to surpass the value of the entire cryptocurrency industry? AI. And in that sector, Nvidia is the stock to bet on.
Diversify your portfolio with this fintech
Nvidia’s market cap will likely prevent it from rising another 1,000% anytime soon, but there’s one fintech stock that has the potential to do just that. New Holdings (NYSE: NU).
Despite Nu’s market cap of nearly $70 billion, most investors have never heard of Nu. That’s because the bank operates only in Latin America, and the only way to access its services is via smartphone. The company’s strategy transformed the Latin American banking industry a decade ago: instead of building and operating costly physical branches, Nu offered its services directly to consumers online, which reduced costs and allowed it to compete aggressively on price and service.
Plus, Nu is able to innovate faster than its competitors: When the company launched its Nu Crypto platform (a service that lets users buy, sell, and trade different cryptocurrencies), it gained 1 million users in just a few months. Innovation like this helps explain why Nu has grown from almost zero customers 10 years ago to more than 100 million today.
But Nu’s growth isn’t over yet. Latin America is home to more than 650 million people, and Nu has proven its ability to penetrate markets quickly: More than half of Brazilian adults are Nu customers, and Nu is replicating the strategy in new markets like Mexico and Colombia.
With analysts expecting revenue growth of around 44% this year and another 30% in 2025, it’s likely Nu will maintain double-digit growth rates for the next decade or more. This is a long-term story, but Nu has the potential to match or even beat the performance of most major cryptocurrencies.
Should I invest $1,000 in Nvidia right now?
Before you buy Nvidia stock, consider the following:
of Motley Fool Stock Advisor The analyst team Top 10 Stocks Here are the stocks investors should buy now… and Nvidia wasn’t among them. The 10 stocks selected have the potential to generate big gains over the next few years.
Things to consider NVIDIA This list was created on April 15, 2005…If you invested $1,000 at the time of recommendation, That works out to $630,099.!*
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Ryan Vanzo The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a position in and recommends Nvidia. The Motley Fool recommends Nu Holdings. The Motley Fool has a position in and recommends Nvidia. Disclosure Policy.
Two tech stocks with bigger potential than any cryptocurrency Originally published on The Motley Fool
