It’s hard to beat the growth potential of cryptocurrencies. For example, Ark Invest founder Cathie Wood believes Bitcoin has over 2,000% long-term growth potential. But some stocks have just as much room for growth. If you’re looking for maximum growth, these two stocks are for you.
This AI stock is a rocket
No list of stocks with huge upside potential would be complete without mentioning Nvidia (NASDAQ: NVDA). Few investments have ever risen as quickly as the chipmaker. A $1,000 investment made five years ago would be worth more than $26,000. Yet Wall Street analysts still believe there’s more than 30% upside to be had over the next 12 months. Given that Nvidia’s market cap now sits at around $2.6 trillion, it’s hard to imagine how the company could deliver even more massive gains any time soon. But there are several reasons to be optimistic.
The same catalyst that sent Nvidia’s stock skyrocketing won’t just be present for decades to come—it should become significantly stronger over time. In many ways, Nvidia’s story is still in its infancy. That’s because the company’s biggest source of growth has been the rapid emergence of AI technologies that rely on its high-end graphics processing units (GPUs) to function.
The days when Nvidia’s bottom line was defined by gaming and small use cases are over. Today, there’s an arms race for the components that power AI research and innovation — and Nvidia has the goods everyone wants.
AI industry spending on semiconductors totaled about $15 billion last year, according to BIS Research estimates. But spending has already increased dramatically through 2024, providing a tailwind that has helped Nvidia’s revenue more than double over the past 12 months.
BIS Research expects spending to grow nearly 32% over the next few years, with much more growth to come after that. Nvidia is estimated to have a 90% market share in AI GPUs, putting it in a position to capture the lion’s share of this long-term growth trend. Nvidia should also benefit directly from the rise of crypto, as it designs many of its GPUs specifically for cryptocurrency mining.
What category could outperform the entire crypto industry in value? AI. And in that arena, Nvidia is the stock to bet on.
Diversify your portfolio with this fintech
Nvidia’s market cap likely means it won’t rise another 1,000% anytime soon. But there’s one fintech stock that has the potential to do just that: Now Holdings (NYSE: NU).
Most investors have never heard of Nu, even though it has a market cap of nearly $70 billion. That’s because the bank operates exclusively in Latin America, and the only way to access its services is through smartphones. Its strategy turned the Latin American banking industry on its head a decade ago. Instead of building and operating expensive brick-and-mortar branches, Nu offered its services directly to consumers online. This lowered costs, allowing it to compete aggressively on price and offerings.
What’s more, it’s allowed Nu to innovate faster than its competitors. When the company launched its Nu Cripto platform, a service that lets people buy, sell, and transact across cryptocurrencies, it reached 1 million users within months. Innovations like these help explain how Nu went from essentially zero customers a decade ago to more than 100 million today.
But Nu is far from done growing. There are more than 650 million people in Latin America, and Nu has proven it can penetrate markets quickly. More than half of all Brazilian adults are now Nu customers, and Nu has replicated its playbook in new markets like Mexico and Colombia.
Analysts expect revenue growth to be around 44% this year, followed by another 30% in 2025, and there’s a good chance Nu will sustain double-digit percentage growth for the next decade and beyond. It’s a long-term story, but Nu has the potential to match or surpass the performance of most major cryptocurrencies.
Should You Invest $1,000 in Nvidia Now?
Before you buy Nvidia stock, here are some things to consider:
The Motley Fool Stock Advisor team of analysts has just identified what they think is the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could deliver monster returns in the years to come.
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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
2 Tech Stocks With More Potential Than Any Cryptocurrency was originally published by The Motley Fool
