Are you looking for a really big winning investment? Such transactions of course require taking above-average risks, with no guarantee of obtaining a major return. They also often take years to fully realize themselves. But they can definitely be worth it.
With this in mind, here’s a look at three prospects that could turn a $10,000 investment into a relative fortune. Just keep an eye out for them if you decide to give it a shot. After all, these stocks offer huge upside potential, not least because the future of their underlying companies remains somewhat murky.
Rocket Lab United States
Humanity has been deploying communications satellites since the late 1950s and using them seriously since the 1960s. Since the turn of this century, they have been used to provide high-speed Internet access to and from the outside world. space.
And yet we have only scratched the surface of the potential demand for satellite communications. The continued digitalization of everything is forcing businesses and institutions to find more efficient ways to manage ever more information.
Enter Rocket Lab United States (NASDAQ:RKLB).
As its name suggests, Rocket Lab sends satellites into space. To date, more than 1,700 satellites are in orbit using the company’s technology. It also already has 22 launches planned for the current year, many of which will carry multiple satellites. Meanwhile, other launches could also be scheduled this year. This could increase the 19% revenue growth rate that analysts are currently forecasting for 2024.
This new era of space telecommunications is, however, only in its infancy. Now that all of these related technologies — and the need for them — have caught up, industry research and consulting firm Quilty Space estimates that about 20,000 more satellites will be put into orbit before the end of the decade.
And Rocket Lab USA is off to a good start by winning this case in the not-so-distant future. Although this year’s growth prospects are not exactly extraordinary, the analyst community expects that top line to inflate an impressive 72% next year.
That still won’t be enough to bring the company out of the red and black. It will, however, push it in that direction, strengthening Rocket Lab’s long-term potential as a solutions provider in the rapidly evolving orbital launch sector.
Enphase Energy
It’s been a tough year for the solar power equipment maker Enphase Energy (NASDAQ:ENPH), and by extension, for Enphase Energy shareholders. Stocks have fallen more than 60% since the end of 2022 as economic malaise undermines demand for new solar panel installations.
However, don’t confuse a short-term headwind with a fading long-term opportunity. Enphase should still have its day in the sun.
If you’re unfamiliar, Enphase Energy makes solar energy equipment. However, it does not manufacture solar panels; the panels are practically a commodity. Instead, Enphase makes inverters that convert the sun’s rays into usable electricity. Its IQ8 microinverters work in both commercial and residential environments, although the corresponding technology makes Enphase’s equipment very well suited to domestic use.
As we mentioned, last year was difficult. Analysts estimate the company will report zero sales growth for the full year when it reports fourth-quarter results early next month. Profits are probably down a bit. The same analyst community expects the company’s earnings and results to decline this year as demand for solar power technology remains constrained by economic headwinds.
However, take a step back and look at the bigger picture. Solar energy is at the heart of the future of the energy sector. Even with its current weakness, the U.S. Energy Information Administration expects solar power to account for nearly all of the nation’s electricity generation capacity this year and next, at similar to clean energy initiatives in other regions of the world. Indeed, the planned 79 gigawatts of additional power generation facilities are expected to increase the share of solar energy in national energy production from 4% last year to 7% by the end of 2025, again reflecting global demand.
Things are even more convincing in the long term. Mordor Intelligence says the global energy market will see annualized growth of nearly 30% by 2029. The recent pullback in Enphase stock is a way to enter this megatrend at a discount.
Nvidia
Last but not least, add Nvidia (NASDAQ:NVDA) to your stock list, a $10,000 investment today could become a fortune in 10 years.
It is the largest and most established of the three companies in question. This is why its potential gains are also the lowest – it is the least risky prospect of the three. That doesn’t mean it can’t generate serious gains for the foreseeable future, however.
The key to this growth is the advent of artificial intelligence.
Although the world has achieved incredible things with technology so far, we are only just beginning to understand how to commercialize AI. Precedence Research estimates that the global AI market will grow from a total of around $500 billion in 2023 to more than $2.5 trillion in 2032. Nvidia’s place in this market? It makes the hardware that makes AI possible. Estimates place its market share at around 90%.
The key to gaining and maintaining this dominant market share is Nvidia’s purpose-built, turnkey AI platforms that leverage the company’s proven video processing architecture. It turns out that the same technology that makes great graphics cards is also great for AI applications.
In fact, Nvidia’s latest GeForce RTX Super GPUs (graphics processing units) enable laptops to become generative AI workstations, while its HGX H200 platform unveiled in November last year “provides 141 GB of memory at 4.8 terabytes per second, almost double the capacity and 2.4 terabytes per second. x more bandwidth compared to its predecessor, the NVIDIA A100.” This is important simply because higher computing speed leads to more powerful AI applications.
The AI sector’s days of highest growth are likely in the past. However, the path is still very long, with many opportunities ahead. And with about three-quarters of the company’s revenue now coming from AI solutions, the sector’s impending growth bodes well for Nvidia.
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James Brumley has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Enphase Energy and Nvidia. The Motley Fool recommends Rocket Lab USA. The Motley Fool has a disclosure policy.
$10,000 invested in these growth stocks could make you a fortune over the next 10 years was originally published by The Motley Fool
