The history of the stock market is filled with both tremendous successes and sobering failures when it comes to growth stocks. While many innovative companies have faded into obscurity since the 1920s, transformative companies are loving it Nvidia have turned early investors into millionaires by exploring new technological frontiers. Today’s emerging technology leaders could offer similar opportunities to patient investors willing to accept higher risks for potentially outsized returns.
With this perspective, I plan to invest $75,000 evenly in three breakthrough companies over the next five years. Each company represents a leader in breakthrough technologies that can reshape major industries. This is why, in my opinion, these three growth-oriented companies warrant such a significant capital investment.
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IonQ (NYSE: IONQ) transforms quantum computing from a theoretical concept to a commercial reality, deploying applications from drug discovery to financial modeling. According to The Quantum Insider, quantum computing technologies could generate an economic impact of more than $1 trillion across multiple industries by 2035, with quantum hardware and services providers expected to capture $50 billion of this growing market. As one of the industry’s leading pioneers, IonQ is already capitalizing on this opportunity, bringing in revenue of $12.4 million last quarter, representing 102% year-over-year growth.
IonQ’s platform recently received a major validation in the form of a $54.5 million US Air Force Research Lab contract to develop quantum networking capabilities. The company has also established strategic partnerships with AstraZeneca for drug development and Ansys for technical applications. With $382.8 million in cash and growing commercial momentum, IonQ is well positioned to lead the transition of quantum computing from research to real-world applications.
CRISPR therapies (NASDAQ: CRSP) is redefining medicine through its groundbreaking gene editing technology. The company has achieved a historic milestone by obtaining the first-ever approval for a CRISPR-based therapy, entering a market expected to grow from $21 billion in 2024 to $117 billion in 2034.
The company’s flagship treatment, Casgevy, was developed in collaboration with Vertex Pharmaceuticahas received regulatory approval in key markets, including the US, UK and EU, for the treatment of two rare blood disorders: sickle cell disease and beta-thalassemia. The commercial rollout of the therapy is gaining momentum: by mid-October 2024, 45 treatment centers have been activated worldwide and approximately 40 patients are in the treatment pipeline.
With $1.9 billion in cash reserves and a diverse pipeline focused on oncology, cardiovascular disease and diabetes, CRISPR Therapeutics is positioned to lead the gene editing revolution.
Sagittarius Aviation (NYSE: ACHR) is pioneering the development of electric vertical take-off and landing aircraft (eVTOL) in an industry Morgan Stanley projects will reach $1 trillion by 2040 and expand to $9 trillion by 2050, potentially one of the largest new transportation markets since the automobile.
The company’s path to commercialization appears solid. Archer is nearing completion of Phase 3 of the Federal Aviation Administration (FAA) type certification process for its flagship Midnight aircraft; the production facility is ready to start production in early 2025; and it has secured an indicative order book of $6 billion, including major partners such as Japanese airlines.
With more than $500 million in cash reserves, Archer has the runway to execute on its near-term plans, including the launch in the United Arab Emirates (UAE), scheduled for the fourth quarter of 2025. As one of the best-funded and most advanced players in this emerging industry, Archer could capture a significant share of this transformative new market.
While these companies represent groundbreaking innovations in quantum computing, gene editing and electric aviation, they remain speculative investments. By averaging $5,000 per year in each position over five years to reach the $25,000 target, I aim to reduce timing risk while maintaining exposure to these potentially transformative technologies.
Each position will represent a small portion of my overall investment portfolio, weighing the potential for outsized returns against the inherent risks of emerging industries. Less aggressive investors may want to start with smaller positions or watch from the sidelines until these new business models are validated in the market.
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George Budwell holds positions at Archer Aviation, CRISPR Therapeutics and Nvidia. The Motley Fool holds positions in and recommends CRISPR Therapeutics, Nvidia, and Vertex Pharmaceuticals. The Motley Fool recommends Ansys and AstraZeneca Plc. The Motley Fool has a disclosure policy.
3 Unstoppable Growth Stocks I’ll Load $25,000 Each By 2029 was originally published by The Motley Fool
