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Got $3,000? Buy These 3 Stocks Riding Unstoppable Trends

By Keith Speights – Nov 8, 2021 at 5:52AM

Key Points

  • Nvidia is poised to profit from gaming, the metaverse, artificial intelligence, and more.
  • Square is leading the way in the shift from cash to digital payments.
  • Teladoc Health ranks as the global leader in virtual care and still has a massive growth runway.

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Several major trends can be your friends by investing in these growth stocks.

Can you achieve success in investing without having a huge upfront amount of cash? Absolutely. The trick is to find the right stocks to buy and then give them time to run.

There are, of course, differing opinions as to which stocks are the right ones to buy. In my view, the smartest picks are those that are leaders in areas that are practically certain to enjoy tremendous long-term growth. If you've got $3,000 to invest, buy these three stocks that are riding unstoppable trends.

A person looking at a chalkboard drawing of a light bulb, equal sign, and money.

Image source: Getty Images.

1. Nvidia

I can't think of a better stock poised to profit from an unstoppable trend than Nvidia (NVDA -0.71%). Actually, the chipmaker should be a winner with multiple high-growth trends.

The obvious one is gaming. Nvidia's graphics processing units (GPUs) have enjoyed huge demand in powering games for years. Mordor Intelligence projects that the global gaming market will increase by a compound annual growth rate of close to 10% through 2026. Nvidia's gaming opportunity could more than double by the end of this decade.

On a related note, the company should be a leader in the metaverse as well. Nvidia has already developed its Omniverse product, a real-time virtual simulation and collaboration platform. 

We can't leave out artificial intelligence (AI). Nvidia's GPUs are increasingly used in data centers that host AI apps. The company is at the forefront in developing self-driving car technology, too. It could become an even bigger player in AI if its acquisition of Arm goes through.

With these (and potentially other) key trends serving as major tailwinds for Nvidia, this stock should continue to soar for a long time to come.

2. Square

Cash is inevitably going the way of the horse and buggy and the eight-track tape. But that created a big opportunity for companies that offer digital payment solutions. Square (SQ -1.96%) ranks as one of the best fintech stocks ready to seize that opportunity, in my view.

The company has become an important partner to many small and medium-sized businesses with its payment processing and other solutions. Square plans to continue growing this seller ecosystem by moving upmarket, targeting larger sellers. It's also expanding internationally, recently entering France and launching new products in Australia, Canada, and the U.K. 

Square's Cash App ecosystem could present an even bigger opportunity. Cash App holds the potential to disrupt the current banking system. Square has introduced new functionality for Cash App that makes it even more popular. For example, customers can now scan checks to add cash to their Cash App balance. The app is also now available to teens for peer-to-peer payments (with authorization by a parent or guardian). 

And Square is bridging its two ecosystems. In the third quarter of 2021, the company rolled out Cash App Pay, which enables Cash App customers to pay Square sellers both online and in person. Square isn't just profiting from the shift away from cash; it's helping accelerate the trend. 

3. Teladoc Health

COVID-19 has changed the world forever. One positive impact from the pandemic is the increased adoption of telehealth and virtual care, in general. No company is in a better position to benefit from this trend than Teladoc Health (TDOC -2.41%).

Teladoc ranks as the leader in virtual care. The company serves more than half of the Fortune 500 and over 100 U.S. health plans. It offers the broadest array of services in the industry as well as the largest geographical footprint. 

Some have been worried that the demand for virtual care could taper off significantly as COVID-19 cases decline. However, Teladoc appears to be poised for strong growth even in a post-pandemic world. In the company's latest quarter, Teladoc improved on nearly all of its key metrics.

Even with the virtual care boom over the last couple of years, there's still a huge growth runway for Teladoc. This stock should be a big winner for investors who buy and hold for the long term.

Keith Speights owns shares of Nvidia, Square, and Teladoc Health. The Motley Fool owns shares of and recommends Nvidia, Square, and Teladoc Health. The Motley Fool has a disclosure policy.

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